Coca Cola Marketing Strategy and Swot An

JORGE YESHAYAHU GONZALES-LARA
1 |COCA COLA MARKETING STRATEGY


COCA-COLA
MARKETING STRATEGY
AND SWOT ANALYSIS
THE INVENTOR OF THE COCA -COLA BEVERAGE

Coca - Cola posters marketing
Jorge Yeshayahu Gonzales-Lara

MBA Sociology
Master Marketing

All rights reserved to this book or parts of it may not be reproduced in any form without the
permission of the author.
Publisher: La Diáspora Miami

Florida – June 2022

“A hunch is creativity trying to tell you something”

Frank Capra


Executive Summary
The Coca-Cola Company is a total beverage company, offering

over 500 brands in more than 200 countries and territories.
Headquartered in Atlanta, Georgia, Coca-Cola is the world’s
largest provider of carbonated soft drinks, with an over 50%
market share worldwide. Through the world’s largest beverage
distribution system, consumers enjoy the Coca-Cola company’s
beverage at a rate of 1.7 billion servings a day - about 19,400
beverages every second. This research investigates Coca-Cola’s
preeminent position in the soft drink sector, and why it enjoys
it. We explore the external and internal factors which share the
company and its direction, and how Coca-Cola has responded
to its influences. Additionally, an overview of the company’s
strategic efforts shall be undertaken, and some cautionary notes
for the future will be sounded.
John Stith Pemberton (July 8, 1831 – August 16, 1888) was
an American pharmacist and Confederate States Army veteran
who is best known as the inventor of Coca-Cola. In May 1886,
he developed an early version of a beverage that would later
become Coca-Cola


CONTENTS
9 Coca-Cola Marketing Strategy
• Coca-Cola Marketing Strategy

• Prices for placing strategy
• Social networks
15 Coca Cola SWOT Analysis
• Coca Cola Strengths Analysis

• Coca Cola Weaknesses
• Coca Cola Opportunities
• Coca Cola Threats
19 Porter’s five forces analysis

1. Bargaining power of suppliers:
2. Bargaining power of buyers/customers
3. Threat of new entrants
4. Threat of substitutes
5. Competitive Rivalry between the existing players
• The Product Life Cycle
• Value Chain Analysis
39 The inventor of the coca -cola beverage: John Stith
Pemberton
• Coca - Cola posters marketing
71 References
72 Author


Coca-Cola
Marketing
Strategy
Jorge Yeshayahu Gonzales-Lara, MA Marketing
The fourth most valuable company in the world, Coca-Cola, is

one of the most recognized brands today. According to the
researchers, Coca-Cola is available in all countries, including
Cuba and North Korea, through the gray market. In addition,
Coca-Cola sells 1.8 billion bottles every day, and the numbers
continue to rise.
Coca-Cola focuses on improving community relations and

increasing their happiness, which is positively reflected in their
public image, resulting in increased customers and income.
Coca-Cola Marketing Strategy
If a company plans to grow and progress, it is essential to

analyze and understand its current situation to formulate and
determine the target markets. Brands can benefit from the above
statement by contributing to their marketing goals and corporate
goals.
The development of marketing strategies is related to a high
level of planning, which helps to achieve certain objectives
within a specific period and with limited resources. Marketing
strategies also involve gaining an advantage over your
competitors by efficiently managing existing possibilities.
Coca-Cola's marketing strategy is one of the most
comprehensive and diverse strategies today. To fully
understand how they work, let us look at the components of your
marketing strategy.
Prices for placing strategy
Today, it became quite popular for startups, for a day or two, to

offer their service or product for free, and then raise their prices.
However, Coca-Cola chose a different approach and made the
challenge even more difficult. From 1886 to 1959 (73 years
old), Coca-Cola had a fixed price and was only 5 cents.
In competition with Pepsi (its rivalry dates to 1975), Coca-
Cola's pricing strategy is strictly updated because if the prices
between them change markedly, one brand will suffer, and the
other will surely benefit. For example, if the Cola-Cola price
will exceed Pepsi's too much, then consumers can switch to the
cheaper one.

On the other hand, if prices fall, it can make customers doubt

the quality of the product they sell. The Classic Coca-Cola
Bottle: The Coca-Cola bottle was part of the corporation's
defensive marketing. But, after a while, they started promoting
it as much as the logo and the product. In addition, the design of
the Coca-Cola bottle was inspired by the shape of the cocoa pod.
• Coca-Cola logo / font: In 1923, when the
corporation's logo was standardized, Coca-Cola decided
that, as a recipe, the logo should remain intact. As a
result, the Coca-Cola logo has been playing with the
minds of society for an exceptionally long time.
• Sponsorship: Coca-Cola is one of the most
recognized sponsoring brands, it has a long history of
sponsorship including American Idol, The Olympic
Games, BET Network, NASCAR, etc.
• American Idol: The sponsor of one of the most

famous and most reputable American Idol television
shows is Coca-Cola, which officially sponsored all ten
seasons.
• The Olympics: The 1928 Amsterdam Olympics
where the first time Coca-Cola was involved in Olympic
sponsorship. Since then, Coca-Cola has become one of
the games' long-term partners. Also, in 2012, when
London hosted the Olympics for the third time, to
celebrate, Coca-Cola Great Britain produced a special
bottle featuring a special image (it was a rose illustrating
the delivery of the games to London from Beijing)
• NASCAR: For more than 50 years, Coca-Cola has

been an official sponsor of the National Stock Car Auto
Association (NASCAR).
Social networks
Considering that social media has become the best tool for
marketing, of course CocaCola has taken advantage and created
its social profiles on renowned media such as Facebook,
Google+, Twitter, Pinterest. And let us see how they handle
each one of them.
• Facebook: The strategy that Coca-Cola uses is
quite unusual and unique, it is something like Starbucks.
Considering that Coca-Cola is the most recognized
brand, it is easy for them to attract dozens of fans without
even trying. But still, engaging and interacting with
consumers remains something that needs to be done. For
example, apart from Red Bull and ASOS, Coca-Cola is
not as active on Facebook, even a week can go by without
updates. But the subsequent engagement is still
incredibly good. Additionally, because Coca-Cola does
not own a store to attract customers, its goal is to increase
awareness of future advertisements, expand brand
recognition, and increase authority.
• Twitter: Coca-Cola is one of the most active
brands on Twitter that I have seen. The company has
more than 3 million followers and more than 129,000
tweets. The way Coca-Cola uses Twitter is quite unique.
They spend a lot of time answering @mentions. So, like

Nike, social media is a vital part of Coca-Cola's

marketing strategy.
• Pinterest: The way Coca-Cola uses Pinterest is
quite entertaining. Rather than focus on marketing
messages, Coca-Cola simply collects images that are
somehow related to Coca-Cola. For example, many of the
images uploaded to the Coca-Cola account on Pinterest
are random Flickr images, which were taken not for the
sake of advertising, but for entertainment and joy. What's
more, it's an incredible idea that Coca-Cola came up with,
because in this way, they can encourage people to interact
with the brand more frequently and inspire society to take
advantage of their opportunity and appear on the official
social profile of the brand.
• Google: Coca-Cola's Google+ page is not that
impressive. They have around 2 million followers, but
are less active, compared to Facebook and Twitter.
Furthermore, fans are also less engaged than on other
social media. The only interest Google+ generates is
meeting places hosted with amazing Coca-Cola fans.
• Advertising
The best part of the Coca-Cola marketing strategy is advertising.
Coca-Cola is often addressed as a revolutionary organization
that had a significant impact on the American culture.


Coca Cola SWOT Analysis

Coca Cola Strengths Analysis
Brand Equity– Interbrand in 2011 awarded Coca cola with the

highest brand equity award. Coca cola with its vast global
presence and unique brand identity is one of the costliest brands
with the highest brand equity.
Company valuation – One of the most valuable companies in
the world, Coca cola is valued around 79.2 billion dollars. This
valuation includes the brand value, the numerous factories and
assets spread out across the world and the complete operations
cost and profit of Coca cola.
Vast global presence– Coca cola is present in 200 countries
across the world. Chances are, any country that you go to, you
will find coca cola present in that market. This vast global
presence of coca cola has also contributed to the building of the
mammoth brand name.
Largest market share– There are only 2 Big competitors in the
beverage segment – Pepsi and Coca Cola. Out of these 2, coca
cola is the clear winner and hence has the largest market share.
Amongst all beverages, Coke, thumps up, Sprite, Diet coke,
Fanta, Limca and Maaza are the growth drivers for Coca Cola.

Customer Loyalty– With such strong products, it is natural that

Coca cola has a lot of customer loyalty. The products mentioned
above like Coca cola and Fanta have a huge fan following.
People will prefer these soft drinks over others. Because of the
good taste of Coca cola, finding substitutes becomes difficult
for the customer.
Distribution network– Coca cola has the largest distribution
network because of the demand in the market for its products.
On the other hand, due to this successful distribution network,
Coca cola has been able to command such a high market
presence.
Coca Cola Weaknesses
Competition with Pepsi– Pepsi is a thorn in the flesh for Coca

cola. Coca cola would have been the clear market leader had it
not been for Pepsi. The competition in these two brands is
immense and we do not think Pepsi will give up so easily.
Low Product Diversification – Where Pepsi has made a smart
move and diversified into the snacks segment with products like
Lays and Kurkure, Coca cola is missing from that segment. The
segment is also a good revenue driver for Pepsi and had Coca
cola been present in this segment, these products would have
been an additional revenue driver for the company.
Absence in health beverages – If you watch the news, you will
know that obesity is a major problem affecting people
nowadays. The business environment is changing, and people
are taking measures to ensure that they are not obese.
Carbonated beverages are one of the major reasons for fat intake
and Coca cola is the largest manufacturer of Carbonated

beverages. The inference is that the consumption of beverages
in developed countries might go down as people will prefer a
healthy alternative. Water management – Coca cola has faced
flak in the past due to its water management issues. Several
groups have raised lawsuits in the name of Coca cola because
of their vast consumption of water even in water scarce regions.
At the same time, people have also blamed Coca cola for mixing
pesticides in the water to clear contaminants. Thus, water
management needs to be better for Coca cola.
Coca Cola Opportunities
Diversification– Diversification in the health and food business

will improve the offerings of Coca cola to their customers. This
will also ensure that they get better revenue from existing
customers by cross selling their products. The supply chain
which is distributing their beverages can also distribute these
snacks thereby sharing the load of Supply chain costs. Packaged
drinking water– With hygiene becoming a major factor in the
consumption of water, Packaged drinking water has found its
way into people's mind. Coca cola has a presence in the
packaged drinking water segment though Kinley. Although
Kinley’s expansion is slow as of now, Kinley has a huge
potential of expansion. Thus, Coca cola as a company should
focus on the expansion of Kinley as a brand and take it up to
Bisleri ‘s level of trust.
Supply chain improvement– Supply chain can be a major cost

sink hole with the transportation costs always rising. Coca
cola’s complete business is based on transportation and

distribution. There will always be possible improvements in this
area. Thus, Coca cola should keep strict watch on its Supply
chain and keep improving to bring the cost down.
Market the lesser selling products– In the product portfolio of

Coca cola, there are several products which have not found
acceptance in the market. Coca Cola needs to concentrate on the
marketing of these products as well. It is understood that Coca
cola has made several expenses to launch these products. Thus,
the marketing and subsequent rise of sale of these products will
help revenue of Coca cola.
Coca Cola Threats
Raw material sourcing– Water is the only threat to Coca cola.

The weakness of Coca cola was the suspected use of pesticides
or vast consumption of water. However, the threat here is that
water scarcity is on the rise. With the climate changing, and
regions of various countries facing scarcity of water, sooner or
later someone might raise fingers on beverage companies. Thus,
Water sourcing is an axe which can fall anytime on the head of
Coca cola. If water is limited or rationed, Coca cola can
experience a major downfall in their revenue and capacity of
distribution. The same can affect its archrival Pepsi as well.
Indirect competitors– Coffee chains like Starbucks, Café coffee
day, Costa coffee are on the rise. These chains offer a healthy
competition to Coca Cola's carbonated drinks. They might not
be a big competition for Coke, but they do give a dent to its
beverage market.
Similarly, health drinks like Real and Tropicana as well as

energy drinks like Red bull and Gatorade are stealing away the
market share indirectly.
PORTER’S FIVE FORCES ANALYSIS
1. Bargaining power of suppliers:
The bargaining power of suppliers of Coca Cola is weak. It is so

because the number of suppliers is high and the switching costs
for Coca Cola low. While Coca Cola can easily switch from one
supplier to another, it is not possible for any supplier to switch
away from Coca Cola as easily. That can lead to losses for any
of the suppliers. While there are several suppliers, the size of
individual suppliers is small or moderately large. Moreover,
forward integration is a distant possibility for most of its
suppliers. Even if there are no substitutes for raw materials like
sugar, the number of suppliers is still high. So, the main factors
that have come to light regarding the bargaining power of
suppliers are:
• Large number of suppliers
• Small to moderately large size of individual suppliers.
• Forward integration difficult for the suppliers.
• Switching costs for Coca Cola not so high

2. Bargaining power of buyers/customers

The bargaining power of individual customers in case of Coca
Cola is low. Individual customers generally buy small volumes,
and they are not concentrated in specific markets either.
However, the level of differentiation between Pepsi and Coca
cola is low. Mostly they sell similar flavors. Switching costs are
not high for customers and still the two brands enjoy high brand
loyalty. The customers of coca cola are not price sensitive.
Backward integration is not a possibility for the customers
whether it is an individual customer or a large retailer. If a
retailer acquires some bargaining power, then it is only because
it buys in large volumes. Still, overall, the customers’
bargaining power is weak.
3. Threat of new entrants
In the beverages industry there are several factors that

discourage new brands from entering. Growing a brand
overnight is impossible. There are significant investments to be
made. From operations to marketing every part requires a large
investment. Some local brands may start it at smaller scale and
still marketing and hiring qualified staff requires generous
investment. The level of customer loyalty in the industry is
moderate and for any brand to build customer loyalty it will take
some time. So, while new entrants can compete with brands like
Coca Cola at a smaller or local level, to build a brand as big is a
mammoth task requiring both capital and skilled human
resources.
4. Threat of substitutes
Main substitutes of Coca Cola products are the beverages made

by Pepsi, fruit juices, and other hot and cold beverages. The
number of substitutes of Coca Cola products is high. There are
several juices and other kinds of hot and cold beverages in the
market. The switching costs are low for the customers. Apart
from it, the quality of the substitute products is also generally
good. So, based on these factors the threat from substitutes is
strong.
5. Competitive Rivalry between the existing players
There are two major players in the soda industry, and they are
Coca Cola and Pepsi. There is intense rivalry between the two
major players. There are a few smaller players too, but they do
not pose a major competitive threat. The two main players are
nearly of the same size, and they have similar products and
strategies. The level of differentiation between the two brands
is also low and therefore the price competition is intense. People
have already heard of the Cola wars. So, the level of competitive
rivalry between the existing firms is a strong force.
The Product Life Cycle
Coca-Cola is a great example of a product that has had an

exceptionally long product life cycle. Since being introduced
in 1886, it has spent most of its life in the maturity stage.
However, its sales over recent times lead to the question of
whether it is has now entered the decline stage.
Product life cycle is used to indicate that any product has a

limited lifespan, its sales pass through some distinct stages that
have challenges and opportunities and that the product profits
are never static but rather increase and decline through the
stages. The Product life cycle also shows that the human
resource, financial, purchasing, marketing, and manufacturing
which products need at every stage vary in the life cycle.
Coke, a soft drink from Coca Cola, as a product, is in the
maturity stage. A good number of consumers know the product.
Intensive marketing strategies have been applied and
advertisements have been heightened internationally. However,
Coke started losing slowly and the manufacturers, Coca Cola
rolled out its other product, diet coke which could address
concerns from other users who did not find it fit to take the usual
Coke. Also introduced in the market was caffeine free drink that
other consumers recommended than the highly caffeinated
Coke.
These slight changes that were made to Coke were meant to
reach other minorities who were not comfortable taking the
original Coke. After the company investing significant efforts
and resources in marketing and advertisements, the company is
still in the Maturity Stage. Coke has a large loyal group of
highly stable customers. In addition, the product differentiation,
cost management and overall marketing strategies have become
imperative as the growth declines and market share becomes a
key profitability determinant. However, in international market,
the Product life cycle of Coke may be said to be at the growth
phase, and it has achieved success due to its strong branding.

Coca Cola maneuvered on increasing the product life cycle of

Coke by changing the selling points. Internet selling was
adopted, and several consumer targets were reached. The
advertisements went online apart from using radio and paper
advertisements. The reason why Coca Cola heightened
advertisement strategies was to remind the customers about
their product. This has so far achieved recommendable results
which have put the Product life cycle of Coke at the point of
maturity in the graph. Consumers also respond in price changes
of products and the higher the price, the lesser the consumption.
The worsening economy also impacts on the consumption of
Coke. Using these observations, Coca Cola made it to revise
their product prices. Special offers and slight consumer prices
changed the behavior of the Product life cycle graph.
In general, for Coca Cola to be able to market its products such
as Coke, it must be aware of the product life cycle. It should be
noted that the standard Product life cycle of any product takes
five phases, development, introduction, growth, maturity, and
decline.
Value Chain Analysis
Value-chain analysis is an analytical framework that assists in

identifying business activities that can create value and
competitive advantage to the business. The Coca Cola system is
not a single entity from legal and managerial points of view.
Coca Cola manufactures and sells concentrates, beverage bases
and syrups to its bottling partners, maintains ownership of the
brand and develops and applies marketing strategy. Bottling
partners, entities that do not belong to Coca Cola, do

manufacturing, packaging, merchandising and they distribute
the final product to customers and vending partners.
Inbound logistics
Coca Cola has managed a large supply chain which consists of

tens of thousands of farmers and suppliers.
• It treats its suppliers as business partners.
• These business partners provide its system with raw

material including
ingredients, packaging, and machinery as well as goods
and services.
• Coca Cola has also set guiding principles for the suppliers
to follow.
• At a minimum these suppliers are required to comply

with all the applicable laws
and regulations.
• Coca cola also emphasizes on responsible environmental

and workplace policies
and practices.
• It has managed excellent relationship with its suppliers

and that helps it maintain a continuous and uninterrupted
flow of raw material.

Operations:
The operations function of Coca Cola includes concentrate

development and all the administrative functions of
headquarters. Coca Cola is a global business that operates at a
local scale in every community where it does business. Coca
cola system operates through many local channels. However, it
does not own or control all its bottling partners. The company
just manufactures and sells beverage bases and syrups to
bottling operations. The company owns the brand and is
responsible for the consumer brand marketing initiatives.
Outbound logistics
This part of Coca Cola’s Value chain consists of its bottling

partners and distributors. It is bottling partners manufacture,
package, merchandise and distribute the final product to the
customers and vending partners.
These vending partners then sell the product to the customers.
The customers of Coca Cola include the grocery stores,
restaurants, street vendors, convenience stores, movie theatres
and amusement parks. The bottling partners of Coca Cola work
with the customers to execute localized strategies developed in
partnership with Coca Cola company.
Marketing and sales
Coca Cola is a globally recognized brand. However, it has not

become as famous without focusing on marketing. The coca
cola logo is one of the most recognizable logos. Its brand is also
known for a very heavy expenditure on marketing. Apart from
digital channels and social media, Coca Cola also uses print
media and outdoor marketing to promote its brand and products.
It also runs campaigns from time to time.
Coca Cola brought a major shift in its marketing strategy and
rather than promoting its brands separately, it is now focusing
on promoting the entire brand together. Its products are sold in
more than 200 countries worldwide. From retail stores to
restaurants and theatres. Coca Cola products can be seen
everywhere decorating the shelves.
Technology
Coca Cola also maintains heavy focus on technology and

research and development. From production to distribution and
sales, everywhere it has invested in technology. Apart from that
it also focuses on technological innovation through R&D. It has
six R&D centers around the world that are connected to external
technology and assessment hubs connecting it with partners,
tech startups and university researchers.
The company collaborates with partners in the other industries
to fuel innovation across products, packaging, equipment, and
the other things. Coca Cola is continuously focusing on
innovation for growth.
Human Resource Management
Important area of Coca Cola’s value chain. The company has

focused on hiring and developing talent and creating an
environment of learning and growth. It pays them good salaries
and complements the payments with rewards. Coca cola focuses
on employee motivation and engagement. Coca cola focus is on

performance management to provide the employees with career
growth.
Procurement
Coca Cola procures from thousands of farmers and suppliers. It

uses technology to make the entire process easier and efficient.
It has maintained good relationships with its suppliers and
provided guidelines that the suppliers are required to follow.
Coca Cola role of a firm’s infrastructure is central to its success.
Coca Cola has managed a large infrastructure including its
management, human
resources, financial and technological infrastructure. It is also
educating its suppliers and focusing on innovation through its
R&D centers.
The Coca Cola Brand
Coca Cola is an iconic global brand that has exemplified brand

loyalty throughout its 125-
year history of success. The brand has retained its popularity
amidst economic downturns, changing consumption patterns,
and increased concern over healthy eating and drinking habits.
Maintaining the Connection Between Loving the Brand
and Consuming the Products
Loving the brand and consuming the products are not one in the
same… but they should be. We all love the famous polar bears
that grace our TV screens during the holidays, the retro glass
bottles, and classic red logo, but we can love all of that without
drinking Coke products. Therein lies the potential disconnect
between brand love and consumption.
The first method is advertising. Ads show images of the Coca
Cola brand, but also customers drinking and enjoying Coke
products as a part of their lives. Additionally, Coca Cola
arranges product tastings in stores. This enables customers to
enjoy the products prior to purchasing them, which serves as
another way to associate the brand with product consumption.
Nothing inspires brand loyalty like giving customers a product
they enjoy from a brand they love.
Maintaining Flexibility in a Changing Environment
In the past 15 years the public has become increasingly

concerned with health and consumption of sugar, which clearly
impacts the consumption of Coca Cola’s flagship product –
regular Coke. Coca Cola responded to this change deftly with
the development of new products and a change in the marketing
strategy for older products. The company developed Coke Zero
(a zero-calorie alternative that tastes more like regular Coke
than Diet Coke), and Coke Life (a naturally sweetened low
calorie alternative to regular Coke).
In terms of changes in marketing strategy, the company has

expanded the brand. Coke sells many products outside of soda
including all-natural juices, high-quality milk, Honest Tea, and
other drinks with health-related and performance benefits. They
now market these products under the Coke brand name instead
of marketing them separately. This informs customers that Coke

products fit a wide variety of consumption habits and
preferences. The company’s flexibility in modifying the brand
and products ensure that the Coca Cola brand never goes out of
style!
Making the Products More Premium
Coca Cola has changed customers’ perception of the product by

positioning Coke products as more premium, rather than
bargain-priced and mass-produced. This is largely done through
packaging. Rather than offering Coke products in extra-large
containers and cans, the products are now offered in smaller
containers, such as miniature aluminum cans and glass bottles.
The company has also manufactured cans and bottles in a
variety of colors.
Consuming products from these new packaging concepts gives
customers a more unique experience each time they open and
consume a Coca Cola product. As a result, the company has
seen a dramatic increase in sales from these sizes and formats.
Giving Back to the Community
Coca Cola contributes to the communities in which its products

are sold in a variety of ways, and the residual impact of this is
an increase in brand loyalty. Since its inception in 1984, the
Coca Cola Foundation has given back more than $820 million
to enhance the sustainability of local communities worldwide.
The company is the largest private employer in Africa and
empowers women via its 5 by 20 program., which pledges to
economically empower 5 million women by 2020. Lastly, the

company pledged to give 100% of the water it used back to
nature; via water reclamation programs by 2020 but has already
reached this goal in 2016.
These initiatives are genuine and reach far and wide. Coca Cola
touches more than customers’ taste buds. It touches their
communities, homes, families, and most of all – their hearts. If
that would not inspire brand loyalty, it is hard to imagine what
would.
Consistent, strategic branding leads to a strong brand equity,
which means the added value brought to your company's
products or services that allows you to charge more for your
brand than what identical, unbranded products command.
The most obvious example of this is Coke vs. a generic soda.
Because Coca Cola has built a powerful brand equity, it can
charge more for its product--and customers will pay that higher
price.
VALUE CHAIN ANALYSIS OF COCA COLA
Value-chain analysis is an analytical framework that assists in

identifying business activities that can create value and
competitive advantage to the business. Coca Cola is world’s
leading soft drink maker and operates in more than 200
countries around the world. It sells a variety of sparkling and
still beverages. It generates 60% of its revenue and about 80%
of its operating profit from outside the United States. It has
strong brand recognition across the globe. According to

business insider, approximately 94% of the world population is
aware of the red & white logo of Coca Cola.
The Coca Cola system is not a single entity from legal and
managerial points of view. Coca Cola manufactures and sells
concentrates, beverage bases and syrups to its bottling partners,
maintains ownership of the brand and develops and applies
marketing strategy. Bottling partners, entities that do not belong
to Coca Cola, do manufacturing, packaging, merchandising and
they distribute the final product to customers and vending
partners.
Coca Cola is one of the most recognizable brands globally.
Known for its strong brand image and global presence. The
concept of value chain analysis was introduced by Professor
Michael E Porter of Harvard Business School. Managers can
obtain a picture of how each stage in the value chain adds value
to the product and accordingly optimize the value chain to
obtain better results
1. Coca Cola has several billion-dollar brands in its
portfolio.
2. Coca Cola creating such a large and successful brand also
requires managing the value chain successfully.
3. A value chain includes all the activities starting from
obtaining the raw materials from various sources to the
final sales and after sales service. There are several
activities in the middle which form the value chain.
4. Optimization will not just bring efficiency, but it can also
generate new sources of competitive advantage.
Inbound logistics:
Coca Cola has managed a very large supply chain which
consists of tens of thousands of farmers and suppliers.
• It treats its suppliers as business partners.
• These business partners provide its system with raw
material including ingredients, packaging, and machinery
as well as goods and services.
• Coca Cola has also set guiding principles for the suppliers
to follow.
• At a minimum these suppliers are required to comply
with all the applicable laws and regulations.
• Coca cola also emphasizes on responsible environmental
and workplace policies and practices.
• It has managed excellent relationship with its suppliers
and that helps it maintain a continuous and uninterrupted
flow of raw material.

Operations:
The operations function of Coca Cola includes concentrate
development and all the administrative functions of
headquarters.
• Coca Cola is a global business that operates at a local
scale in every community where it does business.
• Coca cola system operates through many local channels.
• However, it does not own or control all its bottling
partners.

• The company just manufactures and sells beverage bases

and syrups to bottling operations. The company owns the
brand and is responsible for the consumer brand
marketing initiatives.
Outbound logistics:
• This part of Coca Cola’s Value chain consists of its
bottling partners and distributors.
• It is bottling partners manufacture, package, merchandise
and distribute the final product to the customers and
vending partners.
• These vending partners then sell the product to the
customers.
• The customers of Coca Cola include the grocery stores,
restaurants, street vendors, convenience stores, movie
theatres and amusement parks.
• The bottling partners of Coca Cola work with the
customers to execute localized strategies developed in
partnership with Coca Cola company.
Marketing and sales:
Coca Cola is a globally recognized brand. However, it has not
become as famous without focusing on marketing.
• The coca cola logo is one of the most recognizable logos.
Its brand is also known for a very heavy expenditure on
marketing.
• Apart from digital channels and social media, Coca Cola
also uses print media and outdoor marketing to promote
its brand and products.
• It also runs campaigns from time to time.

• Coca Cola brought a major shift in its marketing strategy
and rather than promoting its brands separately, it is now
focusing on promoting the entire brand together.
• Its products are sold in more than 200 countries
worldwide. From retail stores to restaurants and theatres.
• Coca Cola products can be seen everywhere decorating
the shelves.
Technology:
Coca Cola also maintains heavy focus on technology and
research and development.
• From production to distribution and sales, everywhere it
has invested in technology.
• Apart from that it also focuses on technological
innovation through R&D. It has six R& D centers around
the world that are connected to external technology and
assessment hubs connecting it with partners, tech
startups and university researchers.
• The company collaborates with partners in the other
industries to fuel innovation across products, packaging,
equipment, and the other things.
• Coca Cola is continuously focusing on innovation for
growth.
Human Resource Management:
Important area of Coca Cola’s value chain.

• The company has focused on hiring and developing talent

and creating an environment of learning and growth. It
pays them good salaries and complements the payments
with rewards.
• Coca cola focuses on employee motivation and
engagement.
• Coca cola focus is on performance management to
provide the employees with career growth.
Procurement:
Coca Cola procures from thousands of farmers and suppliers.
• It uses technology to make the entire process easier and
efficient.
• It has maintained good relationships with its suppliers
and provided guidelines that the suppliers are required to
follow.
• Coca Cola role of a firm’s infrastructure is central to its
success.
• Coca Cola has managed a large infrastructure including
its management, human resources, financial and
technological infrastructure.
• It is also educating its suppliers and focusing on
innovation through its R&D centers.
The world’s fourth most valuable company Coca-Cola is one of
the most recognizable brands today. The value chain is an
excellent part of the process of organizing the activities to fulfil
the objective of establishing communication between the
leaders of each stage to guarantee that the product is in the hands
of the clients in the best feasible way. The Coca Cola value
chain is a series of activities that aim to create and add value to
the product at each step during the production process in a chain
of values.

John Stith Pemberton

1831- 1888
THE INVENTOR OF THE COCA-COLA BEVERAGE
A statue of Pemberton outside of the Coca-Cola headquarters.
John Stith Pemberton (July 8, 1831 – August 16, 1888) was

an American pharmacist and Confederate States Army veteran
who is best known as the inventor of Coca-Cola. In May 1886,
he developed an early version of a beverage that would later
become Coca-Cola but sold his rights to the drink shortly before
his death.
John Stith Pemberton was the inventor of the Coca-Cola

beverage. In his day Pemberton was a most respected member
of the state’s medical establishment, but his gift was for medical
chemistry rather than regular medicine. He was a practical

pharmacist and chemist of great skill, active all his life in
medical reform, and a respected businessman. His most
enduring accomplishments involve his laboratories, which are
still in operation more than 125 years later as part of the Georgia
Department of Agriculture. Converted into the state’s first
testing labs and staffed with Pemberton’s hand-picked
employees, these labs almost single-handedly eliminated the
sale of fraudulent agricultural chemicals in the state and ensured
successful prosecution of those who tried to sell them.
Early Life and Career
Born on January 8, 1831, in Knoxville, in Crawford County,

Pemberton grew up and attended the local schools in Rome,
where his family lived for almost thirty years. He studied
medicine and pharmacy at the Reform Medical College of
Georgia in Macon, and in 1850, at the age of nineteen, he was
licensed to practice on Thomsonianism or botanic principles
(such practitioners relied heavily on herbal remedies and on
purifying the body of toxins, and they were viewed with
suspicion by the public). He practiced medicine and surgery
first in Rome and its environs and then in Columbus, where in
1855 he established a wholesale-retail drug business
specializing in material medica (substances used in the
composition of medical remedies). Sometime before the Civil
War (1861-65), he acquired a graduate degree in pharmacy, but
the exact date and place are unknown.

Coca-Cola Bottles
The analytical and manufacturing laboratories of J. S.

Pemberton and Company of Columbus were unique in the
South. “We are direct importers,” the company claimed,
“manufacturing all the pharmaceutical and chemical
preparations used in the arts and sciences.” Established in 1860
and outfitted with some $35,000 worth of the newest and most
improved equipment—some of it designed and patented by the
company—it was “a magnificent establishment,” an
enthusiastic reporter from the Atlanta Constitution proclaimed
in 1869 when the labs were moved to Atlanta, “one of the most
splendid Chemical Laboratories that there is in the country.”

Pemberton House
Pemberton served with distinction as a lieutenant colonel in the

Third Georgia Cavalry Battalion during the Civil War and was
almost killed in the fighting at Columbus in April 1865. In 1869
he became a principal partner in the firm of Pemberton, Wilson,
Taylor, and Company, which was based in Atlanta, where he
moved in 1870. Two years later he became a trustee of the
Atlanta Medical College (later Emory University School of
Medicine) and established a business in Philadelphia,
Pennsylvania, where his own brands of pharmaceuticals were
manufactured on a large scale. He also served for six years
(1881-87) on the first state examining board that licensed
pharmacists in Georgia.
Pemberton was “the most noted physician Atlanta ever had,”

according to the Atlanta newspapers, but he is best known for
his expertise in the laboratory, where he perfected the formula
for Coca-Cola.

Coca-Cola delivery truck

The Origin of Coca-Cola
A few years before Coca-Cola began its spectacular rise to

international acclaim, a drink known as Pemberton’s French
Wine Coca was extremely popular in Atlanta. Its fame spread
throughout the Southeast, and the demand for the tasty beverage
was high.
In 1885 a reporter from the Atlanta Journal approached the

creator of French Wine Coca and asked him for a detailed
analysis of the new drink. Pemberton replied, “It is composed
of an extract from the leaf of Peruvian Coca, the purest wine,
and the Kola nut. It is the most excellent of all tonics, assisting
digestion, imparting energy to the organs of respiration, and
strengthening the muscular and nervous systems.” He explained
that South American Indians considered the coca plant a sacred
herb and praised its beneficial effects on the mind and body.
With the aid of the coca plant, the Indians had performed
“astonishing” feats, he said, “without fatigue.” Pemberton then
admitted that his coca and kola beverage was based on Vin
Mariani, a French formula perfected by Mariani and Company
of Paris, which since 1863 had been the world’s only standard
preparation of Erythroxylon coca.
Vin Mariani Bottle
In 1886 the city of Atlanta introduced prohibition, which,

among other things, forbade the sale of wine. Pemberton
decided to make another version of his popular drink. He
dropped the reference to wine in the name of the beverage,

substituted sugar syrup for the wine, and coined the name
“Coca-Cola” to identify his formula. Henceforth, he would call
Coca-Cola the ideal temperance drink, both on the label and in
advertising.

Realizing that he needed financial backing to market this

nonalcoholic version of French Wine Coca on a large scale,
Pemberton formed a company for that purpose. He put his son
Charles in charge of manufacturing Coca-Cola, and after
prohibition ended in 1887, he again produced French Wine
Coca. He announced that he would retire from active practice,
sell his drugstores in Atlanta and elsewhere in the state, and
devote all his time to promoting his beverages. Meanwhile, a
group of businessmen responded to Pemberton’s appeal to
finance the new Coca-Cola Company. He was to receive a
royalty of five cents for each gallon of Coca-Cola sold.

It was Pemberton’s practice to organize a business as a co-

partnership and then convert it into a corporation. In March
1888, after being in business for eight months as a copartner, he
filed the petition for incorporation of the first Coca-Cola
Company in the Fulton County Superior Court. Five months
later, on August 16, 1888, he died at his home in Atlanta.
On the day of Pemberton’s funeral, Atlanta druggists closed

their stores and attended the services in masse as a tribute of
respect. On that day, not one drop of Coca-Cola was dispensed
in the entire city. At sunup the following day, a special train
carried his body to Columbus, where a large group of friends,
relatives, and admirers laid him to rest. The Atlanta newspapers
called him “the oldest druggist of Atlanta and one of her best-
known citizens.”


COCA - COLA POSTERS MARKETING
























References.
1. Bhasin, H. (2018). SWOT Analysis of the Coca-Cola Company.

Retrieved from https://www.marketing91.com/swot-coca-cola
2. Coca-Cola Journey Homepage (n.d.) Retrieved from
https://www.cocacolacompany.com Habiba, A. (2017). Marketing
Strategies of Coke: An Overview. Retrieved from
3. http://www.kaavpublications.org/journals/jounal-1/article/article-
1193.pdf Mussa, A. (2012) The Product Life Cycle of Coca-Cola.
Retrieve from
4. https://prezi.com/dsp0wf6q7ukb/the-product-life-cycle-of-coca-
cola/
5. Pratap, A. (2017). The Coca-Cola Company Porter’s Five Forces
Analysis. Retrieved from
https://www.cheshnotes.com/2017/02/coca-cola-five-
forcesanalysis/
6. Stewart, T. (2011) Who Owns Your Brand?
Retrieved from https://www.cbsnews.com/news/who-
owns-your-brand/
7. Tedone, C. (2016) How Coca-Cola® Maintains Brand Loyalty in
a Changing Environment.
8. King, Monroe. "John Stith Pemberton." New Georgia
Encyclopedia, last modified Jun 1, 2020.


Author
Jorge Yeshayahu Gonzales-Lara, sociologist, writer, and researcher,

graduated with a master’s degree in Marketing from the University of San
Ignacio University in Miami. Graduated from Hunter College in New
York in the specialty of Hispanic American studies, continuous studies and
graduated from the OTI-Outreach Training Institute, as a clinical
specialist in drugs, alcohol, and tobacco. He served as a counselor on drug
abuse, alcohol, and domestic violence for the Familia in Children agency
on Long Island. I work as an immigration specialist for the CARECEN
agency on Long Island, as well as a BIA accredited by the New York Court
of Appeals in the Safe Horizon agency representing immigrants in the New
York immigration court.
Writer and founder of the blog of the magazine La Diáspora, and essayist
of the magazine of Latin American writers Letrillas. He was director and
founder of the magazine Informativo and author of the first Master for
Exhibit on political asylum for Peru.
He served as an Immigration and Naturalization Officer at CIS/DHS in

New York. He earned a master’s degree in Marketing from San Ignacio
University in Miami. He was the founder and creator of La Diaspora
Magazine, created as a species of Peruvian in the Peruvian diaspora that
was initially created in New York and has spread to Miami. He is currently
a professional consultant in immigration, marketing, writer, editor,
advertisers and author of numerous essays and books among them.




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JORGE YESHAYAHU GONZALES-LARA

1 |COCA COLA MARKETING STRATEGY

2 |COCA COLA MARKETING STRATEGY

THE INVENTOR OF THE COCA -COLA BEVERAGE

Jorge Yeshayahu Gonzales-Lara

3 |COCA COLA MARKETING STRATEGY

Publisher: La Diáspora Miami

4 |COCA COLA MARKETING STRATEGY

“A hunch is creativity trying to tell you something”

5 |COCA COLA MARKETING STRATEGY

6 |COCA COLA MARKETING STRATEGY

The Coca-Cola Company is a total beverage company, offering

7 |COCA COLA MARKETING STRATEGY

8 |COCA COLA MARKETING STRATEGY

• Coca-Cola Marketing Strategy

15 Coca Cola SWOT Analysis

• Coca Cola Strengths Analysis

19 Porter’s five forces analysis

9 |COCA COLA MARKETING STRATEGY

10 |COCA COLA MARKETING STRATEGY

The fourth most valuable company in the world, Coca-Cola, is

Coca-Cola focuses on improving community relations and

If a company plans to grow and progress, it is essential to

Prices for placing strategy

Today, it became quite popular for startups, for a day or two, to

12 |COCA COLA MARKETING STRATEGY

On the other hand, if prices fall, it can make customers doubt

• American Idol: The sponsor of one of the most

• NASCAR: For more than 50 years, Coca-Cola has

14 |COCA COLA MARKETING STRATEGY

Nike, social media is a vital part of Coca-Cola's

15 |COCA COLA MARKETING STRATEGY

16 |COCA COLA MARKETING STRATEGY

Coca Cola SWOT Analysis

Brand Equity– Interbrand in 2011 awarded Coca cola with the

17 |COCA COLA MARKETING STRATEGY

Customer Loyalty– With such strong products, it is natural that

Competition with Pepsi– Pepsi is a thorn in the flesh for Coca

and Coca cola is the largest manufacturer of Carbonated

Diversification– Diversification in the health and food business

Supply chain improvement– Supply chain can be a major cost

cola’s complete business is based on transportation and

Market the lesser selling products– In the product portfolio of

Raw material sourcing– Water is the only threat to Coca cola.

Similarly, health drinks like Real and Tropicana as well as

PORTER’S FIVE FORCES ANALYSIS

1. Bargaining power of suppliers:

The bargaining power of suppliers of Coca Cola is weak. It is so

• Large number of suppliers

• Small to moderately large size of individual suppliers.

• Forward integration difficult for the suppliers.

• Switching costs for Coca Cola not so high

21 |COCA COLA MARKETING STRATEGY

2. Bargaining power of buyers/customers

3. Threat of new entrants

In the beverages industry there are several factors that

Main substitutes of Coca Cola products are the beverages made

The Product Life Cycle

Coca-Cola is a great example of a product that has had an