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The Coca-Cola Company and its marketing strategy

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Sarah Oukoulou

on 15 December 2014

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Transcript of The Coca-Cola Company and its marketing strategy

Coca Cola's history
Introducing the company
Marketing Mix
Advertizing timeline

Introducing the company
Marketing mix
The Coca-Cola Company is one of the most important companies in the world today.
Coca-Cola's sodas are nowaydays sold in most of the countries, and have become, for a lot of people, almost a daily convenience goods.
But the company is also well-known for its effective marketing and communication actions, which have evolved through time and society.

Coca-Cola's history
Animated history of Coca-Cola
A video that provides an overview of the history of The Coca-Cola Company. It was originally produced in Russia in order to introduce Coca-Cola to the Russian market.
The drink, called "Coca-Cola" or "Coke", was originally intended as a patent medicine. John Pemberton was addicted to morphine and wanted to find a subsitute.

The name comes from the 2 original ingredients: the coca (plant) and Kola nut.
coca-cola's bottle evolution
The soft drink started as a soda fountain beverage. But the development of the bottling system has been a key element in Coca-Cola's success.
More about the history of the bottle: http://www.coca-cola.co.uk/125/coca-cola-bottles-history.html
years old company
- The actual Chairman and CEO is Muhtar Kent
- Around 1.9 billion servings of Coca-Cola products are consumed daily worldwide (which represents around 3.1% of all the beverages consumed in the world)
- Coca-Cola is the leader of beverage corporations
Key information
- Coca-Cola's net operating revenue almost reached $47 billion in 2013
Geographic situation
- The company is operating in more than 200 countries and its products are sold in every country of the world, except Cuba and North Korea.
- Coca-Cola has more than 700 000 system employeees and 130,600 associates worlwide.
The coca-cola Company and its marketing strategy
By Oukoulou Sarah
The segmentation by Sales Volumes
Latin America's 29% rate is due to ranks top consumer, Mexico.
Coca-Cola: WHY?
Coca-Cola is one of the most important companies in the world today, and is a typical multinational branch. Its story and evolution are interesting and allows us to understand how a company evolves, how it succeeds, and how it achieves to develop an effective worldwide strategy.
As a frequent consumer, I also see it as an opportunity to discover more about the company and its communication strategy, which I believe is one of the best among world's biggest companies.
Few facts about the company
Coca-Cola is recognized by 94% of the population and thus is the second most understood term in the world, after "OK".
Since its creation, the formula has been kept secret. Only a few people in the world know the secret formula.
The Coca-Cola Santa Claus first appeared in advertising in 1931. He will have a huge impact on the society, becoming the new representation of Santa Claus, replacing the green one.
The Coca Cola Company created the Cola-Cola soft drink, or Coke, but not only. Other famous sodas and drinks brands belong to the company such as Sprite, Fanta, Minute Maid, Powerade, and many others. The multitude of examples show off the power of the company and its adaptation to the various expectations and desires of consumers.
Yet, we will only analyze the main elements of Coca-Cola product range : Coca-Cola, Coca-Cola Zero, Coca-Cola light (or Diet Coke).
Coca-Cola is the original product created by John Pemberton. Originally created as a patent medicine, it became a drink for everybody.
The original -and secret- formula became famous first in the United States before becoming the worldwide most popular drink.
Diet Coke, also known as Coca-Cola light, was introduced in the United States in 1982. The aim was to create a new way of life by creating a free sugar and free calorie drink. Today, Diet Coke/Coca-Cola light is one of the most successful brands of The Coca-Cola Company. It is commercialized in a huge amount of countries, and has also a lot of success, above all for the women.
Diet Coke, or Coca Cola Light
Was Diet Coke created to offer a new "way of life"? Maybe, but one should not forget that Coca-Cola needed an alternative to its original drink, often criticized for its excessive sugar content. This drink may have been created to respond to its detractor and spread a new image.
Coca-cola zero
Coca-Cola Zero was introduced in the United States in 2005. It is, as for the Diet Coke, a free sugar and free calorie drink; but is intended to keep the original Coca-Cola's taste. However, this is the Coca-Cola's most lightened drink, with only 0.50 kilocalories per 150ml; and without sugar. This drink was created with young adults in mind (18-25 years old consumer, and men particularly).

This drink, quite recent, may have renewed the brand; and can be seen as a good alternative to the Coca-Cola and the Diet Coke as it contains less sugar and "controversial" ingredients.

The new Coca-Cola brand, Coca-Life, has been launched in Argentina in 2013 and should be launched worldwide in 2015. For more information, go to http://www.coca-cola.co.uk/health/stevia/introducing-coca-cola-life.html
See the Green Santa Claus look: http://dab1nmslvvntp.cloudfront.net/wp-content/uploads/2009/12/GreenSanta.jpg
The drink could have allow the company to respond to its detractors; but this mainly failed. Why ? Because the company used aspartame as a sugar substitute; a very controversial ingredient because of its -possible- effects on human health.
Marketing mix
Pricing is done according to the market and geographic segment. It is mainly based on competitors prices; in Coca-Cola's case, Pepsi.
Each brand of the company has its own prices
A considerable advantage for Coca-Cola; it is less "pressured" being theleader of the market and has more liberty than its competitors
Worldwide franchised system supplying syrups and concentrates to over 1,200 bottling operations; local companies and suppliers in more than 200 countries
An effective distribution network and several containers: several types of bottles, cans, etc.
Lots of retailers and important partners, such as fast-food companies like McDonald's.
Coca-Cola is well known for its various and originals advertising campaigns. The promotional campaign often reflects the society of the time. Since its creation, Coca-Cola's campaigns are caracterized by a slogan, which is very important in the company's communication strategy. This slogan is often used to deliver a message, and recently, has been used a lot to share the idea of drink that will make people happy, through drinking it or sharing it with people, for instance: it is a strategy based on emotion that have been and still is very effective.
The Coca-Cola Company uses every support of communication, from print media to the internet (through social networks), and including, most of all, its very catchy and entertaining TV advertisement.
Marketing strategy: Advertising timeline
1886 to 1920's
The advertising at the creation of Coca-Cola was not as developped as today, but the slogan have always been a key element in its history. At the origin, the main idea was to describe and define the drink.
1886: Drink Cola-Cola
1904: Delicious and refreshing
1905: Coca-Cola revives and sustains
1908: Good to the last drop
1906's slogan "Great National Temperance Beverage" reflects an american society veering away from alcoholic beverages (that will soon be forbidden by the prohibition). Coca-Cola is the alternative.
1922 to 1940
This period is the period of new and different advertising slogans. The slogans want to insist on the aim of the beverage: to have a pause and refresh. However, the company wants people to drink Coca-Cola not only during the summer, but during every season, including winter.
1922's slogan
It was during this period, in 1931, that Coca-Cola's Santa Claus appeared for the first time in an advertisement. The company used him every year since this date (to see some Christmas advertisement, go to http://www.adbranch.com/coca-cola-santa-claus-1931-1949/).
Santa Claus advertisement is one of the most important in the history. Coca-Cola was able to adapt the most important character in the world to its beverage. A true success !
This was one of the most influential advertisement, as the red Santa Claus soon became the "new" worldwide Santa Claus, in every people's mind.
rest of the 20th century
From 1940 to the end of the century, the slogans and campaigns were mainly based on the basics of the beverage, to its definition: a refreshing beverage,with a unique taste, that you can drink at any time, with a certain sense of patriotism also ("America's Real choice", in 1985). The media supports also became more numerous during the century, and the company extanded its impact, with TV advertisement for instance.
Some campaigns became very successful and survived through the century, as for the Coca-Cola polar bears. They first appeared in 1922 in a poster in France. They later appeared in several TV commercials above all near Christmas, and also for the 1994 Olympic Games. They became a timeless character of Coca-Cola's advertising: they were used again in a 2012 TV commercial
As for the Coca-Cola's Santa Claus, the success of the Polar bears really shows off the ability of the company to create a defined character and integrate it into an extended communication strategy, which will stay in people's mind and heart.
21th century
From the beginning of the 21th century, Coca-Cola renewed and developed its communication strategy. The beginning of the century was also the opportunity for worldwide companies to enter and develop the new market that had evolved for a few years now: the internet. It had become an essential communication tool, and will certainly become the most important sales platform by the future. With the internet, new technologies also became important (computers, tablets, mobile...) for the companies.
Social networks such as Twitter or Facebook allows the company to be directly connected to the customers, to be close to them and to understand their desires and expectations. It became an interactive tool and a new communication tool.
The 21th century has been for many people the hope for a renew in the society, a flourishing economy and a century of peace and happiness, after the desastruous 20th century and its numerous wars.
Since 2000, this idea of happiness and strong values are very current in Coca-Cola's marketing strategy.
2000 - Coca-Cola. Enjoy
2001 - Life Tastes Good

2005 - Make It Real
2006 - The Coke Side of Life
2009 - Open Happiness
In 2013 and 2014, the company launched its new advertisement campaign: the "Share a Coke" campaign. The idea was to "get personal", to have the people reacting and sharing a Coke with friends or family. An inspiring campaign that had a huge success (in France for instance, http://www.lefigaro.fr/medias/2014/02/13/20004-20140213ARTFIG00441-evian-et-coca-cola-pubs-preferees-des-francais.php).
The future
After 128 years of existence, there is no doubt about the fact that The Coca-Cola Company still has a long (and bright?) future. The Company has been able to adapt its products and its marketing strategy through time and society; and seems to be able to renew them constantly.
The company has a lot of important partnership, with the FIFA or the Olympic Games for instance, which organize the most popular and followed-up events on earth, the FIFA World Cup and the Olympic Games. This should give the company a continuous and advantageous exposure.
Since its creation in 2009, the "Open hapiness" campaign had and still have a true success. The TV advertisement ad campaigns are very well thought and the consumers appreciate it. The Coca-Cola Company does have the best (or almost) marketers, and this has been and will be a real asset.
websites and online articles
Conversations staff. 2012. "A history of Coca-Cola advertising slogans". Coca-Cola Company. Accessed on Dec 14. http://www.coca-colacompany.com/stories/coke-lore-slogans
Ted Ryan, 2012. "The enduring history of Coca-Cola's Polar bears". Coca-Cola Company. Accessed on Dec 14. http://www.coca-colacompany.com/holidays/the-enduring-history-of-coca-colas-polar-bears
2010. "Coca-Cola Santa Claus 1931-1949". Adbranch.com. Accessed on Dec 13. http://www.adbranch.com/coca-cola-santa-claus-1931-1949/
Alexandre Debouté, 2014. "Evian et Coca-Cola, pubs préférées des Français".
Le Figaro
. http://www.lefigaro.fr/medias/2014/02/13/20004-20140213ARTFIG00441-evian-et-coca-cola-pubs-preferees-des-francais.php
Arun Kumar, "Marketing Mix pf Coca-Cola". Marketing 91.com. Accessed on Dec 12. http://www.marketing91.com/marketing-mix-coca-cola/
"Coca-Cola history". Worldofcoca-cola.com. Accessed on Dec 10. http://www.worldofcoca-cola.com/about-us/coca-cola-history/
"Product description". Coca-Cola Company. Accessed on Dec 8. http://www.coca-colacompany.com/brands/product-descriptions#coca-cola-zero
Iconographic documents
"Open happiness" advertisement for 2010 South Africa's FIFA World Cup first picture). http://sparksheet.com/curation-community-and-coca-cola%E2%80%99s-open-happiness-project/
"Christmas Coca-Cola truck wallpaper". http://gallsource.com/festival/christmas-coca-cola-truck-wallpaper-new.html
"Coca-Cola bottles". Coca-Cola UK. http://www.coca-cola.co.uk/content/en_GB/img/125/AM_706x264_Bottle_Chronology.jpg
"Muhtar Kent". ajc.com. http://media.cmgdigital.com/shared/img/photos/2013/03/01/9d/03/photo_01_muhtar_kent.JPG
"Thirst knows no season", 1922. Coca-Cola Company. http://d1lwft0f0qzya1.cloudfront.net/dims4/COKE/f5fd0a5/2147483647/resize/584x%3E/quality/75/?url=http%3A%2F%2Fassets.coca-colacompany.com%2F1e%2Fd3%2F4bde9404473eaba900e6c3832457%2Fthirst-knows-no-season-slogan.jpg
"Buvez Coca-Cola", 1922. Coca-Cola Company. http://d1lwft0f0qzya1.cloudfront.net/dims4/COKE/d3a8ce7/2147483647/resize/584x%3E/quality/75/?url=http%3A%2F%2Fassets.coca-colacompany.com%2F34%2F2d%2F1489f4344937a7de3b625bc30d83%2Fpolar-bear-slideshow-french-poster.jpg
"Animated history of Coca-Cola", 2011. Published by Coca-Cola Conversations on youtube.com. Accessed on Dec 12.
"Share a Coke - Thank You", 2013. Published by Coca-Cola on youtube.com. Accessed on Dec 13.
"128 years of Coca-Cola's History in 2 minutes", 2014. Published by FastCompany. Accessed on Dec 7.
Thank you and merry christmas !!
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