BRAND POSITIONING OF COCA COLA

Introduction

Coca-Cola is generally tagged as the 'soft drink' of the world (Bell 2004). The company
started selling its drink in 1886 when Dr. John S Pemberton charged his customers five cents
per bottle. Since then, the brand has become the leading soft manufacturer globally with over
700,000 employees with more than 500 brands.

The company has been very successful in its campaign that it has solidified its status to be
one of the icons in American culture. As it continues to expand globally, Coca-Cola partnered
with several bottlers worldwide to go over all the processes of every product.

Behind the company's success is a marketing approach that typically guides Coca-Cola to
market its products. Most companies generally classify their marketing strategies into
different categories. As with Coca-Cola, market segmentation, targeting, and positioning are
three essential factors that helped the company effectively cater to its target customers.This
can also serve as a guide for start-ups to formulate their marketing approach.

The Coca-Cola Company: An Overview

The Coca-Cola Company is the world leading manufacturer, marketer and distributor of non-
alcoholic beverage concentrates and syrups. It currently operates in over 200 countries
worldwide and is most famous for the innovative soft drink, ‘Coca-Cola’, but can now boast
in the region of 230 different brands (www.coca-cola.com). Its headquarters are in Atlanta,
Georgia. 70% of the company volume and 80% of the company profit come from outside the
United States. It is one of the most visible companies in the world. Their Coca-Cola product
is now available all over the world and has resulted in the drink becoming the world’s
favourite soft drink. But how has this been achieved and how does Coca-Cola continue to
hold their position in the soft drinks market? The former chairman of the Coca-Cola
Company, Douglas Ivester has stated that being global is the main strength of the Coca-Cola
Company. (Coca-Cola Company, Annual Report, 1998) It is a business with a popular,
affordable product, with a strong foothold in many countries.
Coca-Cola’s international success can be attributed to many things but Sergio Zyman, former
chief marketing officer of the Coca-Cola Company argued (1999) that in order to think
globally, a company must act locally. This message is emphasised many times over by the
Coca-Cola Company. The Coca-Cola Company is recognized all over the world. Their core
brand, Coca-Cola, leads this recognition, but when needed, they are also very much a local
operation, meeting the demands of local tastes and cultures with more than 230 brands in
nearly 200 countries. Whilst CocaCola run a global business, it always emphasises that they
wish to stay local. Independent business people, who are native to the nations in which they
are located, (with some exceptions) locally own bottling and distribution operations.
Consumers will have different experiences, given their personal preferences and location.
Coca-Cola is adjusting its approach (both at a strategic and a tactical level) so that it can tap
into these differences and provide the appropriate marketing activities and beverages to
connect with consumers (www.coca-cola.com). Coca-Cola’s effectiveness and profitability is
obviously well supported by their strong competitive position and market share in their
primary product market – Coca-Cola. Buzzell and Gale (1987) state that there is a definite
correlation between the size of a firm’s market share and the level of profitability i.e. the
larger the market share the greater the level of profitability. They point to four reasons why
market share might be linked to increased profitability. Firstly, scale economies coupled with
an increase in the learning experience resulting in the most effective and efficient use of
production techniques and technology. Secondly, customers are unwilling to take risks and
will therefore stay with the main market player due to the comfort factor.

RATIONALE OF STUDY
The purpose is to discover the strategic analysis of Coca Cola Beverages through the
application of the scientific procedures. The main aim is to find out the truth which is hidden,
and which is not discovered yet. Our main objective is to find out Strategic analysis of Coca
cola so that we can know what criteria helps coca cola most to compete as a best soft drink in
the beverage products
 To find out the Strategic analysis of Coca cola.
 To find out the quality of the products in the market.
 To find out the response time to resolve quality of the products in the market.
 To find out the clarity of communication & execution support from the company on
trade/consumer related promos.
 To find out the MARKETING MIX OF COCA-COLA
 To find out availability of Coke & Pepsi in the outlets.
 To find out the SWOT and Pestel analysis of Coca cola.

OBJECTIVES OF THE STUDY

The objectives of this study are:
 To study the brand positioning of Coca-Cola
 To explore the 4P’s OF COCA-COLA
 SWOT analysis of Coca-Cola brand.
 To analyse the marketing strategy of Coca Cola

The Strategic Positioning of Coca-Cola in their Global Marketing Operation Examines how
Coca-Cola has strategically positioned itself within the world’s soft drinks market. Given that
they operate in over 200 countries, they are faced with a clear choice of whether to
standardise their product offerings globally and reap the potential benefits of economies of
scale, adapt their offerings to a particular market (which may facilitate increased market
specific penetration), or adopt an integrated approach . There has been much literature written
regarding the external and often uncontrollable factors which may impact upon a firms
positioning strategy; this paper looks at these externalities and the internal controllables in
order to derive a ‘best fit’ strategic and tactical approach. Moreover, this paper looks at the
strategic international positioning of Coca-Cola by utilising a number of models.
RESEARCH METHODOLOGY:
 Research Design
Research is a common language refers to a search of knowledge. Research is scientific &
systematic search for pertinent information on a specific topic, infect research is an art
of scientific investigation. Research Methodology is a scientific way to solve
research problem. It may be understood as a science of studying how research is done
scientifically. In it we study various steps that are generally adopted by researchers in
studying their research problem. It is necessary for researchers to know not only know
research method techniques but also technology. The scope of Research Methodology is
wider than that of research methods. The research problem consists of series of closely
related activities. At times, the first step determines the native of the last step to be
undertaken. Why research has been defined, what data has been collected and what a
particular method have been adopted and a host of similar other questions are usually
answered when we talk of research methodology concerning a research problem or study.

The Literature Survey

 The literature research is a fast, economic way for researchers to develop a better
understanding of a problem and to discover hypothesis in the work of other.
 A large volume of published and unpublished data is used to study.
 Some tools like personal interviews and questionnaires will be used which would help
to generate an idea about the effectiveness of the study.
 Proper care needs to be followed while designing the questions for personal
interviews and for the questionnaire so that it would become easy for a layman to
understand and answer properly.

Nature and Sources of data

Primary Data:
Primary data is the data observed or collected from first-hand experience. Primary data is
important for all areas of research because it is accurate information about the results of an
experiment or observation.

1) Personal Interview: A personal interview with staff members of the company will be
organized regarding their goals and methods used to accomplish their goal within the
company and marketplace.

2) Questionnaire: A questionnaire would be designed that could help in Fulfilling the

objective of the study to the maximum The questionnaire will be designed in such a way so
that it could solve the issues, like what are the terms and conditions followed by the company
earlier and what are the policies they are following now to make themselves competent. The
Questionnaire would consist of 10-12 objective-type questions which become easy for the
bank staff to answer.
Secondary Data:
Secondary data is the data that has been already collected and readily available from other
sources. Such data are cheaper more quickly obtainable than the primary data and also may
be available when primary data cannot be obtained at all. Following are some of the sources
of secondary data:

Secondary Information Sources: -

a) Performance Appraisal System of the Company
b) Training Calendar of company
c) Participants List
d) Various books and Magazines
e) Company's websites

Sample and sampling technique.

Questionnaire:
A questionnaire will be prepared while keeping in mind the objective of the study. The
option of filling a questionnaire is the most convenient way to interact with people while
filling the questionnaire and moreover the data will be less biased as the details will be
collected directly from the company. The questionnaire will be designed in an objective
mode so that it would become easy for people to fill because it consumes less time.

Survey: Survey will be done with a view to studying the method and tools and areas of
improvement.

Historical data collection: The data of the company will be collected on a historical
basis. With a view to studying the terms and conditions or policies opted by the company,
historical data will be studied so that the new policies can be studies properly.

Sampling: Sampling is the process of selecting units (e.g., people, organizations) from a
population of interest so that by studying the sample we may fairly generalize our results
back to the population from which they were chosen. It is that part of statistical practice
concerned with the selection of a subset of individual observations within a population of
individuals intended to yield some knowledge about the population of concern, especially
for the purposes of making predictions based on statistical inference. Sampling is an
important aspect of data collection. Sampling is a commonly used term to describe the
process of obtaining information about an entire population by examining only a part of it.
The result obtained by sampling is objective and defensible. It is not subject to questions of
bias. Statistical sampling can be more accurate than an examination of every item in a large
population. It may save time and money. Data may be combined and evaluated, even
though obtained by different users.
Tools and Techniques to be used for data collection

No study could be successfully completed without proper tools and techniques. For a better
presentation and the right explanation, I used tools of statistics and computers frequently.
And I am very thankful to all those tools for helping me a lot.
Basic tools which I used for project from statistics are:
1. Bar Diagrams /Pie charts
2. Tables Pie

Charts are useful tools for every research to show the result in a well clear, easy, and simple
way. Because I used bar diagrams/charts in the project for showing data in a systematic way,
so it need not be necessary for any observer to read all the theoretical detail, simple on seeing
the charts anybody could know that what is being said.

Technological tools are:

1. MS Excel
2. MS Word

The above application software of Microsoft helped me a lot in making projects more
interactive and productive. Microsoft Excel has a great role in my project, it created my
situation of "you sit and get." I provided it simply all the detail of the data and in return, it has
given me all the relevant information. And at last Microsoft Word did help me with the
documentation of the project in a presentable form.

Method/s to be used for data collection.

Data collection methods are techniques and procedures used to gather information for
research purposes. These methods can range from simple self-reported surveys to more
complex experiments and can involve either quantitative or qualitative approaches to data
gathering.

Some common data collection methods include surveys, interviews, observations, focus
groups, experiments, and secondary data analysis. The data collected through these methods
can then be analysed and used to support or refute research hypotheses and draw conclusions
about the study’s subject matter.

Data collection methods play a crucial role in the research process as they determine the
quality and accuracy of the data collected. Here are some major importance of data collection
methods.

 Determines the quality and accuracy of collected data.

 Ensures that the data is relevant, valid, and reliable.
 Helps reduce bias and increase the representativeness of the sample.
 Essential for making informed decisions and accurate conclusions.
 Facilitates achievement of research objectives by providing accurate data.
 Supports the validity and reliability of research findings.
The importance of data collection methods cannot be overstated, as it plays a key role in the
overall success and validity of the research study.

Data handling and analysis- organisation and analysis of data.

 Data analysis, interpretation, and presentation are crucial aspects of conducting high-
quality research.
 Data analysis involves processing and analysing the data to derive meaningful
insights, while
 Data interpretation involves making sense of the insights and drawing conclusions.
 Data presentation involves presenting the data in a clear and concise way to
communicate the research findings.

Raw data collected will converted into meaningful information important using standardised
intervention. The information will be presented in the form report with tables and groups. The
direction shown by the study will be presented as findings and from the findings suggestions
will be made so as to make the marketing potential efficiency.

Limitations
It is important to note here the following limitations of market research:

(i) A research study will fail to serve its purpose if marketing researcher merely collects some

statistical facts; or is preoccupied with techniques or; uses data of questionable validity; or

communicates the findings in too much vague or technical language.

(ii) A research study will suffer if the marketing manager does not offer full perspective of

the research problem; or allows inadequate time; or uses research as a ‘fire-fighting’ device;

or does not really appreciate the value of research.

(iii) Marketing research cannot by itself provide the solution or make the decision. It only

reveals relevant information to the marketing managers who can be able then to make sound

and strategic marketing decisions.

(iv)Predictions or readings made available by marketing research are not perfect and they

cannot be because, they are approximations. Marketing research can predict tendencies but

not the certainties.

Conclusion

The Coca-Cola Company, founded in 1886, is the world leading manufacturer, marketer and

distributor of non-alcoholic beverage concentrates and syrups. Today, Coca-Cola has an

international presence, operating in more than 230 brands in nearly 200 countries, with

around 70% of the company volume and 80% of the company profit come from outside the

United States. A number of uncontrollable elements affect Coca-Cola’s international

marketing strategy and tactical implementation. These groups of elements are Macro, Meso

and Micro factors and comprise the PESTLE (Political, Economic, Social, Technological,

Legal and Environmental) macro factors, prevailing Trends and Concepts Meso factors and

ITEMS (Information, Time, Energy, Money and Space) micro factors. This makes the

exclusive use of either approach too extreme to be practical and urges multinational

marketers to search for the right balance between standardisation and adaptation. Coca-Cola’s

core ‘global’ brands are mainly standardised, but with a number of adaptations taking place.

Although the company may strive for a completely standardised strategic approach, drawing
on the associated economies of scale, in reality they are following the Integrated AdaptStand

approach. The company’s effectiveness and profitability is obviously well supported by their

strong competitive position and market share in their primary product market – Coca-Cola.

Other brands like Diet Coke, Sprite and Fanta have also been internationally recognised and

profitable. Its’ international success is achieved by the company’s strategy and tactics, which

complement each other and work in harmony providing the optimum return bounded by

efficiency. The company is thriving as it is both effective (doing things right) and efficient

(doing the right thing). Coca-Cola is adopting Differentiation and Cost Leadership strategies

(Generic Strategies). In terms of Differentiation, the firm attempts to be diverse from its

competitors by adding something to its product that will provide a unique value to its
customers. This is achieved through well designed and managed marketing activities

resulting to perceived superior quality product and high brand image and recognition.

Further, Cost Leadership is achieved not only through economies of scale, but also through

learning, knowledge and experience in production and operational processes, and through

effective/efficient distribution networks and manufacturing systems. In relation to Ansoff,

Coca-Cola is using a number of strategies. Initially, it used the Market Penetration Strategy

and become established in its home market by increasing market share and product usage.

Then, it used a Market Development Strategy by expanding its operations into foreign

markets. Later, it developed new products, both at a national and international level (Product

Development) and then started operations in the carbonated soft drinks market

(Diversification Strategy). This also ensures that Coca-Cola has a comprehensive product

portfolio in each market, increasing the likelihood of a purchase of a Coca-Cola Company

branded product. This portfolio is well managed and enables the best fit between the

company’s strengths and weaknesses to the opportunities found in the environment. In

considering the strong competitive position of the firm in a highly attractive market, it is

suggested that Coca-Cola should Protect its Position (Mckinsey Matrix). This can be

achieved by concentrating efforts on maintaining its existing strength by investing to grow at

maximum digestible rate. Coca-Cola should maintain its marketing orientation not only in its
strategic approach but also in its tactical day-to-day operations. It should constantly

undertake market research to enable it develop products that satisfy customer needs. This

goes in line with the definition of marketing (both at a national and international level), which

is about identifying, anticipating and satisfying consumer requirements.

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October

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 The Coca-Cola Company, Annual Report, (1998)

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3

The Coca-Cola Company, founded in 1886, is the world leading

manufacturer, marketer and distributor of non-alcoholic beverage
concentrates and syrups. Today, Coca-Cola has an international presence,
operating in more than 230 brands in nearly 200 countries, with around 70%
of the company volume and 80% of the company profit come from outside
the United States.
A number of uncontrollable elements affect Coca-Cola’s international
marketing strategy and tactical implementation. These groups of elements
are Macro, Meso and Micro factors and comprise the PESTLE (Political,
Economic, Social, Technological, Legal and Environmental) macro factors,
prevailing Trends and Concepts Meso factors and ITEMS (Information, Time,
Energy, Money and Space) micro factors. This makes the exclusiv

The Coca-Cola Company, founded in 1886, is the world leading

manufacturer, marketer and distributor of non-alcoholic beverage
concentrates and syrups. Today, Coca-Cola has an international presence,
operating in more than 230 brands in nearly 200 countries, with around 70%
of the company volume and 80% of the company profit come from outside
the United States.
A number of uncontrollable elements affect Coca-Cola’s international
marketing strategy and tactical implementation. These groups of elements
are Macro, Meso and Micro factors and comprise the PESTLE (Political,
Economic, Social, Technological, Legal and Environmental) macr

The Coca-Cola Company,

founded in 1886, is the world
leading
manufacturer, marketer and
distributor of non-alcoholic
beverage
concentrates and syrups. Today,
Coca-Cola has an international
presence,
operating in more than 230
brands in nearly 200 countries,
with around 70%
of the company volume and 80%
of the company profit come from
outside
the United States.
A number of uncontrollable
elements affect Coca-Cola’s
international
marketing strategy and tactical
implementation. These groups of
elements
are Macro, Meso and Micro
factors and comprise the PESTLE
(Political,
Economic, Social, Technological,
Legal and Environmental) macro
factors,
prevailing Trends and Concepts
Meso factors and ITEMS
(Information, Time,
Energy, Money and Space) micro
factors. This makes