Case study on a coca-cola

case study on coca-cola. introduction, segmentation targeting and positioning . selling strategy, marketing planing, objective, swot analysis of the company.

1. CASE STUDY ON COCA-COLA By – Siddharth Sonar Class - FY BBA Roll no – F-336

2. INTRODUCTION - Coca-Cola is a large company that has been operating since 1886. It has endured many changes and is currently employing over 140,000 worldwide. There are thousands of different positions at the Coca-Cola Company, which means there are many different types of training's that take place around the globe. Web 2.0 tools have started helping employees learn the specifics of their jobs and are aiding in keeping the Coca-Cola employees current with company changes and responsibilities. Coca-Cola uses web 2.0 tools in two large areas, training and marketing. (Ignatius,  2011)

3. SEGMENTAIONG TAREAGTING AND POSITIONING Coca Cola Company is the world’s leading manufacturer, marketer, and distributor of soft beverages. Coca Cola uses "Multisegmented" targeting strategy which means that the company has more than single, well- defined, market segment.  It develops a marketing mix for each of the segments. Coca Cola has more than 400 different products line, total of 3,500 product mix. Geographic segmentation Coca Cola has drinks that targets different age groups, ethnic groups, sexes, lifestyles, etc. Examples: 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 Coca Cola- the most popular soft drink so far that being sold in most countries in the world. The large demand for its taste and the trend toward healthier lifestyle influenced Coca Cola to produce healthier products such as Coca Cola Zero, Diet Coca Cola, and etc. - Coca Cola Zero- targets teens that don't want calories but want the taste. - 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. - Minute Maida- 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. limate - 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. 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. 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.

5. Because Coca Cola is a recognized world brand, people will drink it without hesitate.  Coca Cola designed to satisfy the consumer’s needs. The company is able to provide drinks for many different target markets: ages, sexes, and etc. The products are sold to diverse population all around the world. In our world today, people want to live healthier lives. Coca Cola recognized this need and begun to produce different beverages that are satisfying those consumers. Coca Cola products are purchased by different classes, but mainly by middle to high level class. In addition, many people today make their purchases decisions based on the company’s ethics and, or social responsibility. Coca Cola gains the trust of its consumers by contributing to the environment in varies ways.

6. SELLING - Coca-Cola is the best-selling soft drink in most countries, and was recognized as the number one global brand in 2010. While the Middle East is one of the only regions in the world where Coca-Cola is not the number one soda drink, Coca-Cola nonetheless holds almost 25% market share (to Pepsi's 75%) and had double-digit growth in 2003. Similarly, in Scotland, where the locally produced Irn-Bru was once more popular, 2005 figures show that both Coca-Cola and Diet Coke now outsell Irn-Bru. In Peru, the native Inca Kola has been more popular than Coca-Cola, which prompted Coca-Cola to enter in negotiations with the soft drink's company and buy 50% of its stakes. In Japan, the best selling soft drink is not cola, as (canned) tea and coffee are more popular. As such, The Coca-Cola Company's best selling brand there is not Coca-Cola, but Georgia. In May 2016, The Coca-Cola Company temporarily halted production of its signature drink in Venezuela due to sugar shortages. Since then, The Coca-Cola Company has been using "minimum inventories of raw material" to make their signature drinks at two production plants in Venezuela.

7. MARKETING PLAANING OBECTIVES OF MARKET PLANNING - To set realistic & unambiguous goals. To develop an action plan for achieving these Goals. To align the marketing activities with corporate Mission To respond to rapidly changing market conditions. To quantify the outcome of each activity.

8. To Refresh the World... In body, mind, and spirit To Inspire Moments of Optimism…Through our brands and our actions To Create Value and Make a Difference... Everywhere we engage. Vision for 2020 Sustainable Growth: PROFIT: Maximizing return to shareowners while being mindful of our overall responsibilities. PEOPLE: Being a great place to work where people are inspired to be the best they can be. PORTFOLIO: Bringing to the world a portfolio of beverage brands that anticipate and satisfy peoples’ Desires and needs. PARTNERS: Nurturing a winning network of partners and building mutual loyalty. PLANET: Being a responsible global citizen that makes a difference

9. SWOT Analysis of Company Strengths: Strong Brand Name Corporate Identity Global Distribution Advertisement Innovation Local Approach Strong R&D Backward Integration Brand Loyalty Financially stable.

10. Weaknesses: Market Share Under Utilization Of Capacity Sales In India Pesticide Controversy Opportunities: Developing A Global Brand Coca Cola’s Bottling System Sufficient Capital Has A Potential Expansion Into New Market Possible Growing Demand

11. Threats: Competition Pepsi Substituted Not Necessarily Married Pesticide Matter Change Of Taste

12. Labeling and packaging - At present Coca Cola is the market leader in soft drink industry. There are various factor which have contributed to the growth of Coca Cola. Packaging & Labeling are such factors. Packaging of Coca Cola as marketing tool SELF SERVICE : An increasing number of the product are sold on a self service basis. The effective package must perform many of the sales tasks: Attract attention b) Described product features c) Create consumer confidence d) Make a favorable overall impression CONSUMER AFFULENCE : Rising consumer affluence for Coca Cola is making the consumers pay a little more for the convenience, appearance, dependability and prestige of better packages. COMPANY AND BRAND IMAGE : Packaging of Coca Cola contribute to the instant recognition of the company or brand. INNOVATION OPPORTUNITY : Innovative packaging of Coca Cola has brought large benefits to consumers and profits to producers. Packaging of Coca Cola is achieving a number objectives.

13. 1) Identifies the brand 2) It conveys descriptive and persuasive information 3) It facilitates product transportation & protection 4) Assist at home storage 5) Aid product consumption To achieve the marketing objectives for the brand and satisfy the desires of consumers, marketers must choose the aesthetic and functional component of packaging correctly. Aesthetic considerations relate to a packages size and shape, material, color, text and graphics. For example Coca Cola are available in bottles of different sizes ( 200 ML, 300 ML, 500 ML, 2 Litre Bottle). They are also available in different shapes, materials ( Plastic, Tin & Glass ) etc. Functionally structural design is crucial. For example Coca Cola bottles are easy to hold and easy to open. After the Coca Cola packaging are designed it must be tested. Engineering tests...

14. Pricing

15. Pricing Strategy used by Coca-Cola – There are three different pricing strategies which a company can primarily follow: 1)      Price Skimming : Charging premium prices initially to earn maximum revenue. 2)       Market Price : Setting price as going market rate (by competitors) 3)      Market Penetration : Charging lowest price to achieve highest possible sales. To first decide its price, they utilized a cost-based estimating framework for its Original Coke. They initially composed the item, the first coke, decided the expenses for the (item costs, capital expenses, and operational costs), set a cost considering the cost of Coke, lastly persuaded the customers of the pop's esteem. From that point, Coke utilized market-entrance evaluating at its cost. At present, Coca Cola items to meet the opposition against significant players like Pepsi, items valuing is set around a similar level of rivalry. In this way, their essential methodology is Market Price since they trust cost ought not be too low or too high than the value contender is charging from. 

16. Coca-Cola uses the following alternate pricing strategies over the year for Coke: 1)      Psychological Pricing In 2009, Coca-Cola utilizes the psychological estimating system for their Original Coke. For example, the cost of a 2-liter jug of Original Coke was $2.49. They set the cost to end in 9, since this influences clients to think the cost is under $2.50, to speak to the client. 2)      Promotional Pricing Coke also uses the promotional pricing strategy. Coca Cola has offered promotional prices as often as possible. In store that offer Coca-Cola, costs are regularly incidentally valued underneath the rundown cost to build short-run deals. Particularly on some event Coca Cola diminishes its rates like in Ramadan Coca Cola decreases its rate unto 5 Rupees on 1.5 litre container. It gives the item a feeling of criticalness and customers buy the item in view of the lower cost. Coca cola organization offers motivations to middle men or retailers in way a that they offer them free example and free purge bottles, by this these retailers and centre man push their item in the market. Also, that is the reason coca cola seen more in the market.

17. 3) Segmented Pricing - Coke uses the segmented pricing strategy. Based on different packages, Coca Cola is available at different price. By their product in different sizes and at different costs, they get to increase their revenue, because there is not much difference in the costs required to produce the products. Following are the different packages available for different target audience: i )                   RGB - Returnable/ Refillable Glass bottles ii)                   PET – Plastic Bottles iii)                 CAN – Aluminum Cans (Tins) iv)                Tetra – Tetra Packs v)                   BIB - Beverages in bag Following are different prices for different sizes:                      

18. Promotion - Due to the intense competition in the soda industry the top brands spend much on advertising to drive higher sales and revenue. Coca Cola’s marketing expenditure in 2016 was $4 billion. In 2019, the marketing expenditure grew to $4.1 billion. It utilizes both traditional and modern channels to promote its brand and products. Coca Cola launched its Taste the Feeling campaign in 2016 which unites all of its brands. This one brand approach taken by Coca Cola marks a significant shift from its previous marketing strategy. Apart from TV ads and outdoor ad campaigns, the company serves its ads across the internet and on the social media.  Its social media accounts are used to connect with its fans and followers and for customer engagement.  There are more than 1,250 promotional videos of Coca Cola on its official YouTube channel.

19. Financing - Net Revenues Grew 16% for the Quarter and 9% for the Full Year; Organic Revenues (Non-GAAP) Grew 7% for the Quarter and 6% for the Full Year. Operating Income Grew 19% for the Quarter and 10% for the Full Year; Comparable Currency Neutral Operating Income (Non-GAAP) Grew 23% for the Quarter and 13% for the Full year. Fourth Quarter EPS Grew 134% to $0.47 and Comparable EPS (Non-GAAP) Grew 1% to $0.44; Full Year EPS Grew 38% to $2.07 and Comparable EPS (Non-GAAP) Grew 1% to $2.11 . Cash from Operations Was $10.5 Billion for the Full Year, Up 37%; Full Year Free Cash Flow (Non-GAAP) Was $8.4 Billion, Up 38% .

20. Risk Management - The dynamic management of risk and opportunity is at the heart of our business planning and value creation processes. We have adopted a strategic enterprise-wide risk management approach that provides a common, integrated framework to manage risks and leverage opportunities across the Group. We continuously identify, assess, manage and escalate risks and opportunities, following a rigorous cyclical process that we evaluate against the risk universe in which we operate. We seek to minimise our exposure to unforeseen events and identified risks, and create a stable environment for delivering on our strategic objectives.

21. The key features of our enterprise-wide risk management system are: Group statements on strategic direction, ethics and values Clear business objectives and business principles A formalized risk management policy A clearly defined risk universe aligned to our strategic priorities: community trust, consumer relevance, customer preference and cost leadership Integration of risk management into our business planning processes A continuous process to identify and evaluate significant risks to the achievement of business objectives Implementation of management processes to mitigate significant risks to an acceptable level Implementation of strategies to further embed risk management into the cultural fabric of the business Continual monitoring of our internal and external environment for factors that may change our risk profile .

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