Marketing Mix Of Coca Cola

Firstly, the author introduces the history of the Coca-Cola; and how the brand is successfully developing into the most popular brand and ruling the soft drink world by outstanding products, good leadership, correct strategic decisions, completely distribution system, significant culture accomplishment, impressive marketing campaigns and publicities. But, they also had several problems in the 70s, which result in losing the market position at retail. At the same time, Pepsi, as the main competitor of Coca-Cola, started to make inroads by successfully launching the “Pepsi Generation” and “Pepsi Challenge”. Those kinds of efforts led to a rapid increase in Pepsi market share and strongly hit the brand image of Coca-Cola. Because of the severe situation, the leaders of Coca-Cola decided to change the formula of old Coke with marketing research supporting. So, the New Coke with a smoother and sweeter taste had been launched in April 1985. But out of expected, after launching the new taste soon, many customers boycotted the New Coke, and the market share of the company still decline. The company had to re-launch classic

Since there are a wide range of products available, the pricing for both Coca Cola and Pepsi is done according to the Market demands and the geographic segment and thus both the products pricing are set around the same level. Neither of the brands can win if they enter into a price war, simply because the cost of manufacturing and transportation is huge. The advantage to either of the companies was if they enter into a brand war. Since, Coca Cola always had competitors constantly driving them to be smarter, better and faster and since they were successfully been existing for more than a century, they have had to remain consistent with their pricing strategy. Throughout the years, Coca Cola has made many pricing decisions, but eventually the ultimate goal is to maximize the shareholder value. Coca Cola uses lower price point to penetrate new markets to face competition and also to raise brand awareness. This strategy is strongly implemented till it repositions itself as the Premium beverage as compared to its competitors.

Current product line of coca cola not only now limited in the soft drink it has more than 25 products in its product line. Some of well-known products are describing bellow-

Promotional Pricing strategies:-Coke also uses the promotional pricing strategy. In store that cell Coca-Cola, prices are often temporarily priced below the list price to increase short-run sales. It gives the product a sense of urgency and customers purchase the product because of the lower price

Is a common fact that Coca-Cola is very large corporation and it’s been in business for over 129 years. Coca-Cola’s success and expansion has been thanks to their pioneer business methods from coupons, bottling system, ways of distribution to marketing strategies. The main reason this company had ben able to stage afloat during all these years is because Coca-Cola believes it’s its own competition. They are always researching and innovating their own products. Also Coca-Cola has a great marketing strategy by being physically in a lot of countries. Every year Coca-Cola designs easier ways for their consumers to be able to reach and purchase its products by distributing its product through vending machines, charity causes, stands, etc. Since 1955 Coca-Cola has been a soda provider to one of the largest fast food chain companies McDonalds. Throughout the years Coca-Cola has learn the key to its expansion is within our own worldwide community. [Coke and McDonald’s, Growing Together Since 1955]

The common-size income statement shows that Coca-Cola’s cost of goods sold to revenues percentage rose very slightly from 39.14% in 2011 to 39.32% in 2013. At the same time, PepsiCo’s cost of goods sold to revenues percentage decreased from 47.51% in 2011 to 47.04% in 2013, bringing the 3-year-average to 47.44%. However, 47.44% is still much higher than Coca-Cola’s 3-year-average of 39.38%. With lower cost of goods sold to revenues ratio, Coca-Cola was able to obtain higher gross profit margin, which proves the advantages Coca-Cola have in pricing power over PepsiCo and other competitors. This makes sense because as stated in the overview, Coca-Cola is one of the most recognizable brand in the world

The red and white bundling of Coca-Cola product is world perceived. Their pricing are situated around the same level as its rivals, as they must be seen diverse yet moderate. Like any organization that has been existing for more than a century, Coca Cola needed to remain immensely familiar and steady with their pricing procedures. They have had commendable and perilous contenders that continually drive them to be more brilliant, quicker, and better (Coca-Cola Company 2011).

This joined with a forceful volume deals technique and Coca-Cola's "premium" estimating is the reasons Pepsi's items are constantly less expensive than equivalent CCA beverages (O'Neill, 2015).

b) Price: Because of the accessibility of wide range items the valuing is done by market and geographic portion. Every sub-brand of coca cola has diverse valuing methodology. Their estimating procedure depends on the contenders evaluating, Pepsi is the immediate contender to coke. Refreshment market is said to be an oligopoly showcase (couple of sellers and huge buyers), subsequently they frame into cartel contract to guarantee a common adjust in estimating between the

Coca Cola is one of the biggest multi-national companies. In recent year’s costumer way of living, preferences and taste have changed. Coca Cola have evolved according to consumer taste and preferences. Low and no sugar drinks have been revolutionised with their own identity. With these recent changes and according to recent research shows that not everyone understands the benefits of each drink, which is my we’re introducing a new one brand strategy to help make choice easier and simpler. (Hepburn)

There is little growth potential for Coca Cola because of the market saturation and competition. The negative media publicity will also affect the demand for the product. The sales are at a peak and they have loyal group of consumers which translates into a strong brand. The sales are increasing at a slower pace. Customers are aware of the brand. The brand occupies the shelves in hyper and supermarkets such as the packaging of 2L into combos. For sustainability in the market, the company also offers other products such as Coke Zero, Diet Coke, Fanta Orange, Fanta Grape, Valpre Water, Fruit juices to appeal to larger market segments ,demographic shifts and customer

Coca- Cola is a world largest soft drinks company, which holds approximate 62 percent of the market share. The firm owns most popular brands like Coke, Sprite, Dr. Pepper, and Fants. Additionally, Coca-Cola has added other exotic brands include Powerade and Dasani. There are two major nonalcoholic firms in the market, Coca-Cola and Pepsi, which accounts for over 85 percent of the market share. Although Cola-Cola revenue has slightly declined in the last couple years, the firm still dominates in the soft drink industry due to its recognition brands and delightful products. Interestingly, in the past few decades, Pepsi was able to manage incredible performance in their revenue and financial results. However, recently, Pepsi experiences the decline in sales admit the change of consumers to healthier products and intensive competitions. Besides, Pepsi acknowledges the economic difficulties and the competition factors, therefore, the firm has been done intensive reform in the organization. This reformed activity conducted by Pepsi is that to ensure its competitiveness and product quality in the market place. Equally, Coca-Cola is revived their sales and ensure maintaining their domination in the market share. Therefore, Coca-Cola

In this regard, Coke has the advantage of it’s establishment of a strong brand name. Furthermore, cost management, product differentiation and marketing have become more important as growth slows and market share becomes the key determinant of profitability.

PepsiCo’s competitors use competitive pricing strategy and Pepsi has to keep this in mind all the

PepsiCo’s competitors use competitive pricing strategy and Pepsi has to keep this in mind all the time