The Introduction Of Coca Cola Company Marketing Essay

3530 words (14 pages) Essay

1st Jan 1970 Marketing Reference this

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The Coca-Cola Company was founded in 1892 and established its Headquarters in Atlanta. The Coca Cola Franchise is the World’s biggest Beverage Industry. It dominated a 48% of the global Market share. In total the Franchise is responsible for over 160 different beverages within a market consisting of 200 Countries. Examples of their products are Coke, Sprite, Dasani and many more. Their products range from Sport’s Beverages, Juices, Tea, Coffee and Water.

The Coca Cola Franchise Mission statement:

“To refresh the world…

To inspire moments of optimism and Happiness…

To create value and Make a difference…”

What Their Vision and Objectives are:

Be a great place to work where people are inspired to be the best they can be.

Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people’s desires and needs.

Nurture a winning network of customers and suppliers, together we create mutual, enduring value.

Be a responsible citizen that makes a difference by helping build and support sustainable communities.

Maximize long-term return to shareowners while being mindful of our overall responsibilities.

Be a highly effective, lean and fast-moving organization.

What the Coca Cola Franchise Values:

Leadership: The courage to shape a better future

Collaboration: Leverage Collective Genius

Integrity: Be real

Accountability: If it is to be, It is up to me

Passion: Committed in Heart and Mind

Diversity: As inclusive as our Brands

Quality: What we do, We do well

The SWOT analysis of Coca-Cola Company

1, Strength

They Are the leading consortium in the Market for Consumer Beverages and have attained strong advantages over their competitors

Coca cola utilizes a strong marketing strategy and various enterprise Advertisements that entice consumers to buy their products

The Brand logo and Image of the Coca Cola Franchise is cemented within the majority of consumers in the market and has almost become a daily part of their consumption

Coca Cola has managed to keep their formula a secret. Giving them a huge advantage over their competitors

They have an integrated system of Marketing ranging from vending machines within the fast food industry and multiple strong channels of distribution i.e. McDonalds

They Have the ability to produce innovative products via a well established research and development team.

Due to the fact that they dominate a high market share, their products are mostly products that lead the market.

The products the Coca Cola Franchise is responsible for have the characteristics of being convenient, reasonably priced and a unique flavor

In Countries such as Singapore and China they tend to experience high sales during the Chinese New Year period, this is largely due to the fact that their main Image is very “Red” and Red is considered to be lucky and prosperous within these countries

They Are responsible for the Coca Cola Polar Bear and the portrayal of St. Nick as a plump Jolly figure. This allows them to attain high sales during the Christmas Period as well.

2, Weakness

Due to the sheer size of their industry, the control of the corporation has not been easy due to hundreds of different components within the franchise.

A consumer Stereotype of Coca cola is that their beverages are not healthy. This is widely due to the fact that Coke contains caffeine, sugar and various other ingredients.

Because the products of Coca-Cola Company are mainly bottled drinks, the quality of the products which consumers finally enjoy is relatively difficult to control (due to the possibilities of expiration or metamorphism and other situations).

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It tends to be very easy for the consumer’s to buy from the competitor’s i.e. Pepsi due to the fact that each products are very similar in how they are made, how they are marketed, their prices and to some extent their taste.

3, Opportunity

Generally speaking, it is quite easy for the companies to enter the industry of soft drink. However, the standard which is needed to come to be an international corporation is quite high.

As is known to all, carbonated drinks suit better with the demand of young people. Also, the proportion of young people is increasing fast, especially in some countries in Latin America and Asia Pacific. This would therefore be a positive sign that Sales in the future should increase and therefore bring in More revenue.

Every Chinese New Year and Christmas Period, the Coca Cola has an opportunity to reach peak sales and therefore Maximize profits

There are always new rising stars within each country (I.e. Wayne Rooney – Iconic English Football figure, Cheryl Cole – A female British music Artist) Such rising stars have a huge Fan base that coca cola can exploit by getting these icon’s to endorse their products

American fast food culture coordinates with the carbonated drinks

Junk Food Outlets such as McDonalds have normalized the idea of Coca Cola being a dring that goes with fries and a burger.

Big Events such as The World Cup with draws in millions of viewers, by sponsoring and or basing advertisements around such events increases sales.

4, Threat

There is still a high possibility that the other non-coke carbonated beverage will take place of Coca-Cola, for example Pepsi, one of Coke’s biggest competitor’s

If the general consensus decided to forgo a healthier lifestyle it would almost certainly cause a decrease in sales for some of Coca Cola’s main products i.e. Classic Coke.

Even though the Secret Formula is a key factor to the success of the Franchise, it also carries a big risk. If the formula was to be discovered it would prove disastrous for the company and could almost be certain doom for the firm.

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Coca Cola’s Marketing Mix- The Four ‘P’s


The prices for Coca cola products tend to vary between $1 Sing dollar for cans and $2.50 for 1.5L bottles. Setting low prices for the products means that the product is very price elastic. This means that lower prices guarantee more sales and therefore an overall increase in Revenue. Also due to the fact that it is a product consumed on a daily basis, it is more beneficial to the franchise to set cheaper prices. Prices are also low, due to the fact that it is cheap to make their product and sell it in bulk to different consumers.


The Coca Cola franchise is Responsible for several different products. For example Coca Cola, Sprite, Dasani Water. By differentiating their product they are able to satisfy several of the consumer’s wants and needs. A typical customer is not going to only drink one type of beverage, and therefore by differentiating your products you are able to cover all their wants and needs. This also allows the franchise to target several different markets, for example the younger generation is more inclined towards beverages such as Coca cola and sprite. Whereas the older generation may only drink such beverages on occasion and prefer Water. It also allows Coca cola to target consumers who may not be able to drink Normal coke due to diabetics. This area is covered by the product known as ‘Coke Zero’ which claims to have no Sugar but still contains the taste of Coke.

The Coca Cola Franchise also distributes their products in different sizes i.e. 1.5L bottles, 320 ML can’s and 600 ML bottles. This allows the consumers to buy the product for different occasions. I.e. the bigger bottles are more for celebratory events or for the whole family at home, whereas the Can’s and smaller bottles are designed for daily consumption. The can’s are also sold in six packs, which is overall cheaper they buying the cans separately. It also entices the consumers to buy them, as it is easier to carry.

Their brand and products are also endorsed by iconic figures such as Football stars. For example Wayne Rooney used to be on the image of Coca Cola, marketing the product to the world. Nearly every fan that watches football knows who Wayne Rooney is and admires him for the type of player that he is. Children growing up want to be like him, and therefore by having such an icon endorse your product it guarantee’s sales to people located all across the world, especially during events such as the World Cup.


Coca Cola products such as Coke and Coke Zero can be found pretty much anywhere. The Coca Cola franchise distributes their products among various outlets, For example ‘7-Eleven’. By distributing products to convenient stores, it allows their products to be readily available to anybody who wants to quench their thirst. Convenient outlets such as 7-eleven are key to Coca Cola’s sales as such stores are located in highly populated areas where the potential for a sale is very high, if not guaranteed. On top of that, the products sold at convenient stores tend to be more expensive. This is due to the fact that convenient stores are located in such highly competitive locations with little to no competition.

Another technique that Coca Cola utilizes are the use of Vending machines. Such machines can be located nearly everywhere, e.g. at schools, near offices, at MRT/Bus stations. Such machines tend to draw the consumers attention with their bright red design and are normally very cheap. They are also located in very busy area’s where commuters/students pass on a daily basis. In countries such as Singapore, placing vending machines in strategic locations is very important in guaranteeing sales. This is due to the weather in Singapore. Majority of the time it is really hot, and the consumer wants to quench their thirst in order to cool down. By having a vending machine in heavily populated areas, they are guaranteed to make sales.

Their products can also be found at every food outlet, this is because their franchise is so well known, that consumers want it with their meal. Coca cola has also become iconic with fast food outlets such as McDonalds. Every McDonald’s meal is advertised with a Coke.


Coca Cola do various different types of promotions ranging from small prizes to prizes worth $100,000 and more. The most common promotion that they use is to hide a code under the bottle cap, and if you get the right code you stand to win a prize ranging from hundreds to thousands of dollars in value. By offering such high end rewards, Consumers will be very eager and willing to buy the product, as the chance of winning a product worth hundreds of bottles of coke is too good to miss. Coca cola on occasion also run more than one type of promotion during a certain period. Coke also tend to do very well during Holidays and Major events such as Chinese New Year/ Christmas / The world Cup.

The Color Red is a very traditional this is because Red is considered as a bright, happy colour, That brings good luck. It is believed that appearance and attitude during New Year’s sets the tone for the rest of the year. Fortunately for Coca Cola, their recognized by the Colour Red, and therefore Sales during the Chinese New Years tend to be high. This also opens up a massive window of Opportunity for Coca Cola to advertise and promote their product.

Coca Cola also promote their product via World Events, such as the World Cup which I talked about earlier. Other events that Coca Cola take advantage off are Christmas, and especially in Singapore/China, the Chinese New Year.

Coca Cola are rumored to be the people responsible for how we perceive the image of Santa Clause today. During 1931, the Coca cola franchised featured an Advertisement that showed St Nick as a plump jolly kind man in a red suit. This image of St Nick appeared for roughly three whole decades, and eventually cemented this interpretation of him in the consumers’ minds.

Another key iconic Coca cola figure used to promote the beverage during the winter holidays is the Coca Cola Polar Bear. It first appeared in the Northern Lights advertisement, where the animated Polar bears sat down and drank from a bottle of Coke. The Polar bear also subliminally presents the beverage as a ‘cool refreshing’ beverage, which is also presented in the way Coca Cola text is strewn across its various products. Always Coca-Cola polar bear

Product Implementation


One way that Coca Cola have implemented their products in the past was via Advertising. A prime example of how they did this was with one of their more recent products, ‘Coke Zero’. To successfully introduce this product into the market, they had to target specific age group i.e. Young adults. By narrowing down your Target market, it makes it easier to design the marketing and advertising strategy for the product as it narrows down the possibilities. For example, advertising Coke Zero as a thirst quencher to 50-60 year olds would not be a successful market plan. Thirst quenchers are associated with outgoing active youths and therefore are more ideal for young adults.

Another important aspect of implementing a new product is to come up with a product characteristic that differentiates it from the other products. Coke Zero was described as being “calorie-free”, by doing this they differentiated the product from ‘Diet Coke’ which isn’t 100% calorie free. A study in the U.S also showed that young males associated diet drinks to women. Such studies are vital to a franchise such as Coca Cola as it helps them successfully target the right consumer demographic. If Coca Cola did not carry out this type of Market Research, they would have most likely not have made as much revenue as they have done.

Celebrity Endorsement.

Hiring an iconic figure is a very effective way in implementing a product into the Market. In The UK Coca Cola hired Cheryl Cole (North East Born British Pop Singer) to endorse the product Coke Zero. The reason why celebrity endorsements are effective forms of implementation is due to the fact that they are known worldwide, they have a huge fan base, and almost always have a group of fanatics that will try to do exactly what they do. The idea of selecting an attractive successful UK artist was to entice young men to buy the products. Similar to this, Denmark used Sarah Harding (Cheryl Coles Band mate) to endorse the product abroad.


Coca Cola have successfully launched their products into the market via Sponsorships. Since 2008 Coke Zero have been sponsoring a NASCAR Sprint Cup called the “Coke Zero 400”. By sponsoring such big events, it shows the consumers that they are aware of their interests and also advertises the product as a “Sporty Beverage”. It creates Brand Awareness, as everyone going to the “Coke Zero 400” will obviously be aware of the product. Such events like this will also focus on selling the one product to the consumers, giving them little to no other option. Sponsorships would also be able to create consumer loyalty as it shows that your supporting something that they like.


To Evaluate the Sales of the product, I would first look at the overall amount of goods sold and compare it to the overall cost of Goods sold and cost of production. If the product i.e. Coke Zero’s Amount of Goods sold was greater than the cost of goods sold and Cost of production, it would be a sign of success, as it shows that the product has made some profit. On a global scale I would then compare each Market’s results with one another in order to identify if one market is doing poorly, for example if the sales of Coke Zero in Finland were below par, I would try to identify what causes this. Likewise I would also identify what has been successful in certain markets; in order to utilize the same factors for a product I may introduce in the future to guarantee that that product will also be a success.

Within the first few months of sales I would hope to establish a survey for a general consensus of people within a population. This is to find out if my product is indeed being marketed to the right demographic, if there is anything Coca Cola as a franchise could do to improve the product and also what the consumers may want to see in the future. Not only would this evaluate the successfulness of a product and my marketing Team, it would also create consumer brand Loyalty as it shows that we as a franchise care about what the consumer wants. It would also indicate any possible flaws in the product that we can negate in the future. It may also reveal that a different age group may be keener on the product which would open up a window of opportunity that coca cola can try and expose for their benefit.

Contingency Plan

In some cases scrapping the product in one particular market may be the only thing to do. For example in Finland, the campaign was cancelled. This was due to the fact that it sexual implications, portraying the female gender as mere less Sexual objects. However just because a product fails to launch in one country does not mean the product is a failure. The product successfully launched in many other countries as a Calorie free beverage with the same taste as Classic Coke.

However if the product failure was not as severe as the case in Finland, I would try to salvage the product image by doing market research specifically on why the product failed, different implementation methods, i.e. Are there any key celebrity icons I could use to endorse the product, any events that the Brand could sponsor, for example The premier of Quantum of Solace. Coke Zero was portrayed as Coke Zero Zero Seven, a play on the icon “007”. Such tactics could then slowly create positive buzz amongst the disgruntled Consumers.

If the initial product launch was a failure, it could be a good idea to lower the price or have promotions based around the new product could also be a successful method in drawing in the consumers, as they provide the Consumer with incentives to buy the product. The idea is to get the consumers to take the first step in buying the product, and getting them hooked. The cheaper price / promotion could provide just enough incentive for the consumer to buy the product.

The Reference Page

Coke Can Size … From IAN NZ. 2011. Coke Can Size … From IAN NZ. [ONLINE] Available at: [Accessed 10 April 2011].

Mission Statement & Vision: The Coca-Cola Company. 2011. Mission Statement & Vision: The Coca-Cola Company. [ONLINE] Available at: [Accessed 8 April 2011].

Coca-Cola – Heritage – Cokelore – Polar Bears — Advertising Case History. 2011. Coca-Cola – Heritage – Cokelore – Polar Bears — Advertising Case History. [ONLINE] Available at: [Accessed 8 April 2011].

Santa: Coca-Cola & Santa Claus. 2011. Santa: Coca-Cola & Santa Claus. [ONLINE] Available at: [Accessed 8 April 2011].

Coke, Diet Coke, Coke Zero, Sprite & more: Brands of The Coca-Cola Company. 2011. Coke, Diet Coke, Coke Zero, Sprite & more: Brands of The Coca-Cola Company. [ONLINE] Available at: [Accessed 11 April 2011].

Coke Zero 400 – Wikipedia, the free encyclopedia. 2011. Coke Zero 400 – Wikipedia, the free encyclopedia. [ONLINE] Available at: [Accessed 13 April 2011]

Coca-Cola Zero – Wikipedia, the free encyclopedia. 2011. Coca-Cola Zero – Wikipedia, the free encyclopedia. [ONLINE] Available at: [Accessed 13 April 2011].

Images were all taken from Google Images

~Contents Page~

The Introduction on the Coca Cola Franchise

The Mission Statement, Vision and Objectives and Company Values

The SWOT Analysis

The Marketing Mix – The Four ‘P’s



Contingency Plan

Reference Page

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