PPT_ Coca Cola

Coca-Cola’s headquarters is located in Atlanta, Georgia however; they operate in over 200 countries. Coca-Cola has been the most popular brand for decades and they continue to stay in the lead with innovations. Currently, they have more than 2.800 products available, along with selling other drinks like water, sports drinks, children’s fruit drinks and coffee. “It’s one of the most valuable brands in the world and has a nearly unmatched distribution network, a giant marketing budget, and partnerships with restaurant chains like McDonald’s that make it the most entrenched soft drink brand in the U.S and globally” (Bowman, 2019). Coca-Cola is constantly making moves to stay at the top, like its Freestyle machine that can dispense up to 165 different Coca-Cola drink products. “With over 1.7 billion servings of Coca-Cola products being served each day, Coca-Cola continues to be one of the world’s most ubiquitous beverages” (InterChange, 2020).

This paper intends to discuss the marketing management process such as the company’s product, its target market, place and distribution, price, promotional plan, and customer service plan. We will discuss what the Coca-Cola Company to stay the leading seller in the beverage industry.

Coca- Cola has grown tremendously since it was first founded in 1892. With over 2,800 products available it’s no wonder that Coca-Cola remains the top-selling brand worldwide. They currently sell sparking soft drinks, waters & hydration, juices, dairy and plant-based, coffees, and tea products. You may notice some of their other popular brands like Sprite, Fanta, and Schweppes. While Coca-Cola has many different flavors for Coke, Sprite, or other carbonated drinks, they “support the current recommendations of several leading health authorities, including World Health Organization (W.H.O.), that people should limit their intake of added sugar to no more than 10 percent of their total daily calorie/energy intake” (Coca-Cola, 2017). You can find many of their healthier drink options in various stores like Wal-Mart, Target, local gas stations, and vending machines.

Looking at Coca-Cola as a whole, they sell more than 4,100 drinks, this includes coffees and teas. While they continue to improve drinks and reduce the amount of sugar in those drinks, you can find several of their healthier options in the Coca-Cola Freestyle dispenser as well. You can find these machines at some restaurants such as McDonalds and Wendy’s, by utilizing these machines, consumers can have different flavors other than the original drinks. Some of the other flavors include Coca-Cola Vanilla, Cherry, and Sprite with grape flavor and the list goes on.

Along with more flavors than you can choose from, Coca-Cola has distributed its products in various sizes. The 12 oz. small bottles and 250 ml cans ease the shipment of the product across many countries like India, by securing carbonation as well as the taste. “Additionally, a new protective coating was added on the bottle to lengthen the beverage shelf life by five months” (Coca-Cola, 2016).

Coca-Cola Company is among the largest companies in the entire world and has been able to control the market due to its ability to carry out market researchers to ensure that the market share is improved. The management of the company has been able to identify the target market hence coming up with mechanisms of ensuring that the market share of the business is improved (Singaram, 2019).

The company has been able to manufacture products of different tastes as a way of ensuring that the needs of the customers in the market are met. To ensure that a large number of the customers in the market are attracted to the business, the management of the company has ensured that the qualities of the products made are tested, hence reducing the violation as well as the exploitation of the customers.

Customers have been able to refer others in the business which increases the market share of the business. For the success of the company to be achieved, the management team of the company ensured that the customers’ complaints are heard and the right measures are brought in place to ensure that customers’ needs are met.

The ability of the company to introduce mechanisms of ensuring that the target customers are handled effectively has helped in ensuring that the numbers of sales made within a given time are increased. It is through this whereby the company’s profitability is improved hence contribution to the success of the business (Sultan, 2019).

Coca-Cola has no specific target market however, most of the target marketing is geared towards young people yet advertisements are geared for the older people. It seems Coca-Cola targets people who are 12 years of age or older. This is because the company has been able to produce products which can be consumed by people from different generations. To ensure that the hearts of the target customers in the market are won, the company does continuous marketing and advertising hence ensuring that a large number of the customers are attracted. For the advertisement processes to be carried out effectively, the management of the comp-any makes effective use of the different social media platforms.

According to researchers, Coca-Cola has employed a group of experts who ensure that the complaints of the customers in the market are listened to and the right measures are put in place to ensure that the needs of the target customers are addressed in the best way possible. Since the target market of the company’s products vary from different countries, the management team of the company has ensured that products of different tastes are made to ensure that the needs of their customers are met.

It is through this whereby the market share of the business has been improved therefore contributing to the growth and development of the business. On the other hand, the company has been able to reach the target maker in a short time by ensuring that the products are supplied to different parts of the world. This has played important roles in ensuring that the numbers of sales are made within a given period are increased therefore ensuring that the goals and the objectives of the business are achieved (Wood, 2020).

The Coca-Cola Company is a large business that spans hundreds of countries. Having a significant consumer base makes distribution strategy an important factor for making sure that when a customer wants to reach for a refreshing beverage that they have the option to reach for one of Coca-Cola’s brands of drinks. It is impossible to be a significant supplier of ready to drink beverages if the company does not make the products available where and when customers want to purchase them. Coca-Cola’s strategy for making sure that products reach its final consumer is through a system of franchise bottling companies.

Coca-Cola works with its franchisee bottling companies by providing companies with syrups and flavorings to make the hundreds of flavors that Coca-Cola creates and brands. The franchisees have regions in each country that they maintain in which they are responsible for making sure end consumers have the beverages available for purchase. Coca-Cola uses this franchised strategy to localize parts of the production of its ready to drink (RTD) beverage and to build distribution and sales infrastructure. In this way, the franchisees are acting as intermediaries between Coca-Cola and the end consumer.

Coca-Cola’s franchised strategy does have a downside in that it does have to maintain control over the proprietary ingredients in the syrups and flavorings that it sells to the franchisers. It does this by manufacturing its concentrates only in select locations, many of which are in “wholly foreign-owned sites in the developing world” (Yadav, 2013). This is an exemplary feat as Coca-Cola has to surmount vast differences in road infrastructure, cost structures, and customer needs in these emerging markets as well. If no local production factory for their concentrates can be found in a specific country then it is imported and sold to the franchisers for that specific country.

By using this franchised strategy Coca-Cola produces and sells its concentrates to franchisers who are then responsible for the manufacturing, packaging and distributing the finished beverages. Coca- Cola products can be sold in various formats and locations. Coca-Cola is sold in many places like stores, restaurants, vending machines, internet, and venues. Having a tailored distribution system that allows Coca-Cola’s beverages to be sold in various formats and venues is crucial to being able to supply consumers with its products. The specific localized nature of the franchiser’s product placement strategies with partnerships with local and national companies is vital. It is important to understand that Coca-Cola desires its distribution system to be “customers [selling] our products to consumers at a rate of 1.9 billion servings a day” (Coca-Cola 2020).

Like any other company, pricing becomes one of the most essential elements of their success, when companies’ charges customers for a product, it has to meet the end needs of that customer, and that they are willing to pay constantly. Management’s decision on pricing becomes very vital to dominate the market. We have noticed that there are many elements involving a successful company, from its marketing mix, products, place, and it’s, pricing becomes the most pivotal factor where it affects revenues rather than costs. Pricing additionally has an essential part as a focused weapon to enable a business to misuse advertised openings. Pricing likewise must be predictable with alternate components of the marketing mix, since it adds to the view of a product or service by customers.

Also known as Coke, Coca-Cola has become the world's most dominant soft drink. Throughout the 20th century, Coca-Cola has made its name a popular one. It is the world’s most demanding product, yet its ingredients are still hidden within the company’s name. Coca leaves and Kola nuts could essentially become a good source of caffeine. According to the World’s business report, "best worldwide brand" investigation of 2015, Coca-Cola was the world's third most profitable brand, after Apple and Google. In 2013, Coke items were sold in more than 200 nations around the world, with shoppers drinking more than 1.8 billion organization refreshment servings each day. This could tell us one thing; the company has set prices to a standard where it is tolerable for millions of its customers around the world.

Coca-Cola has used a unique pricing strategy where it involved price Skimming, to make sure this premium price provides and earns maximum revenue, as it is mentioned in the top quality products by many world-famous magazines, its market price was setting market rate where it could provide a fair amount of competition in the market. Its products and pricing strategies have started market penetration where the company was committed to charging customers at a lower price to achieve the 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, and 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 to be too low or too high then the value contender is charging from. To determine the market, and stop capitalism, it was very important for Coca-Cola to be competitive in the market. Competition with Pepsi has provided the company to consider its pricing at a fair level. According to Jindal, Spinet Consultation firm, (2017) “Where it’s pricing can’t exceed too much nor decrease too much as compared to the price of Pepsi Cola. If the price of Coca Cola exceeds too much from Pepsi, then people will shift to Pepsi Cola and on the other hand if the price of Coca Cola decreases people might get the impression that its quality is also low.”

In 2009, for Coca- Cola to accomplish its goals, they started utilizing the psychological estimating system for their Original Coke. When we look into its principle pricing system, we see that its costs were set to become very competitive to any rival groups. 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 the client to think the cost is under $2.50, it has grown to be one of the most persuasive ways of survival in such environments. Furthermore, Coca-Cola used another strategy to enhance its sales goals by developing promotional pricings. Within the pricing strategies, Coca-Cola is also using segmented pricing, and discriminatory pricing, where within its segmentation, the company uses different packages to different vendors, and organizations. Its price can be different from vendor to vendor, or retailer to retailer. By doing so the company pockets more from different areas of operations. For example, by using the returnable/refillable glass bottles, plastic bottles, aluminum cans, tetra packs, or even beverages in the bag. On the other hand, the company also uses discriminatory pricing, where its products are sold through various channels. Some get even cheaper pricing where if the organization is purchasing as a wholesaler and distributor, this could include supermarkets, such as Walmart, Target, Costco, or even smaller retailers, such as corner stores. Also, these pricing strategies include restaurants, café, bars, and nightclubs.

Coca-Cola evolved new strategies to dominate the market. Coca-Cola has offered promotional prices as often as possible. In stores that offer Coca-Cola, costs are regularly incidentally valued underneath the rundown cost to build short-run deals. Particularly on some events such as Holiday seasons, Christmas times, super ball, and or thanksgiving weekends. When we step to a supermarket, we see promotional pricing labeled as buying three 12 pack cans of Coca-Cola product at almost 10 dollars. Being an international product, Coca-Cola also has strived to provide promotional pricing during Islamic, Jewish holidays such as Ramadan where it provides lower pricing strategies to those who love the product at a bulk price. I believe one of the very essential elements of its success also falls under using many independent vendors to distribute the product. This organization has provided opportunities to middlemen, or in plain words, the retailers in a way that they offer those free examples and or free delivery and much more.

Francisco Crespo, SVP and chief growth officer at The Coca-Cola Company, States “In Coca-Cola, it all starts with ensuring we successfully identify where we have headroom to grow. We shouldn’t discard opportunities because there are hurdles. Sometimes, the obstacle is the path, with challenges we can overcome to create a competitive advantage.” (Forbes 2019) To his point, it is important to understand that promotional planning depends on the company's three dimensions processes. By understanding consumer needs. What problem are they trying to solve? What outcome are they expecting? What are their key occasions, contexts, and rituals? Fortunately, Coca-Cola has built one of the most diverse systems in the world, including different types of retailers, digital players, content producers, media platforms, research companies, NGOs, local bottling partners, and entertainment companies.

The Coca-Cola Company is a vast company that spans multiple countries because it understands the importance of marketing management. Managing the system of activities that identify target markets, grow those markets and keeping ahead of the competition is crucial to stay a market leader. The Coca-Cola Company has distinguished itself as a company that can provide value through its products, pricing, placement and promotion in a variety of countries and by various distribution points.

Coca-Cola is a beverage company whose products span a variety of brands whose sole purpose is to provide refreshment to consumers wanting a specific drink. That specific drink must have the proper amount of research to reach the market. As explained, the way the products are developed and marketed is specific to Coca-Cola and the industry. The way Coca-Cola distributes and sells its products is a research study in itself as it navigates multiple countries and various rules and laws. The pricing involved with Coca-Cola is specialized and includes promotional plans. Being a market leader allows the company with a very unique position in the market where the price and promotional plan that Coca-Cola has will affect the overall beverage market.

All these things combined give Coca-Cola a defined and proprietary position as a world leader in the beverage industry which it will use to continue to make sales and products that consumers want soon. Continued research and development of the marketing mix will allow Coca-Cola to command demand for its products in the future with new markets and sustained devotion from its current consumers.

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