Table of Contents

1.0 Introduction 2

2.0 Decision Making Process 2

3.0 Need Recognition & Problem Awareness 3

3.1 Motivation 3

3.2 Motivation and Involvement 3-4

3.3 Promotion 4

4.0 Information Search 4

4.1 Culture and Subculture 4-5

4.2 Memory 5

4.3 Product 6-7

4.4 Promotion 7

5.0 Evaluation of Alternatives 7

5.1 Attitudes 7

5.2 Product 7-8

5.3 Price 8-9

5.4 Promotion 9-10

5.5 Personality 10

6.0 Purchase 10

6.1 Place and Distribution 11

6.2 Price and Lifestyle 11

7.0 Post Purchase Evaluation 12

8.0 Conclusion 12 - 13

9.0 Bibliography and References 14

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Coca Cola has been an iconic brand that has been considered as a ³living symbol of Joy,
Youth and Prosperity.´ Since its inception in 1886 Coca Cola has gained momentum
making it a globally recognized brand with a portfolio of more than 3000 beverages. Coca
Cola has led the soft drink market expanding to other markets achieving an oligopoly
position with an immense market share making them the global leader for carbonated
drinks. But how has this iconic brand become a legend? More importantly is why consumers
are still purchasing Coca Cola? The purpose of this assignment is to demonstrate how
Coca Cola has become a success utilizing the consumer decision making process as the
framework upon which the principles of consumer behavior will be integrated.


 
 


The consumer decision making process is essential to understanding the various decision
processes a buyer experiences. The decision making process is integral for companies to
understand how buyers think and behave when making purchasing decisions. Companies
utilize the decision making process because they are concerned with both the practical
needs of the buyer and the emotional or personal needs of the individual.

Fig 1 Decision Making Process 1

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What triggers a consumers want for a coke? When consumers are affected by an internal
stimulus such as thirst, problem awareness is created. In order to satiate this need
consumers are exposed to a variety of thirst quenchers for example water, juice etc.
However consumers choose to consume a Coca Cola beverage instead which indicates
their satisfaction is fulfilled by a want for this particular beverage.

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Coca Cola appeals to two types of needs within a consumer. The first is the biogenic need
which is the psychological utilitarian need of thirst which can be seen as the lowest level of
the Maslow Hierarchy of Needs (Fig 2). Coca Cola however seeks to satisfy the higher level
needs such as hedonic needs, ego needs and self actualization. Therefore Coca Cola
understands the importance of targeting higher level needs in order to build brand loyalty for
ensuring consistent sells.

Fig. 2 Maslow Hierarchy of Needs 2

    

Thirst acts as a drive that¶s motivates consumers to take action to quench their thirst.
Therefore Coca Cola has made it an integral part of their operations to include strong
campaigns that increase both motivation and involvement with their product. An example of
this can be seen when the Coca Cola Company held a ³Fire Passing´ activity that consisted
of passing the fire of the Olympic Games in preparation of the Beijing 2008 Olympic Games.
This type of motivational tactic enhanced the involvement of consumers and actually

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created an environment that suggested that Coca Cola wants to be part of their lives. This
type of involvement appeals to consumers and increases their favorability towards Coca
Cola. It can also lead to consumers being motivated to purchases Coca Cola as well as
create brand awareness.

   

Consumers can also become motivated by the various slogans such as:
-Passport to refreshment
-Coca-Cola has the taste thirst goes for.
-Coke adds life.
-The pause that refreshes

Coca Cola has attempted to make consumers believe that consuming a Coca Cola entails a
refreshing; exciting experience that triggers an emotional response that can only be
satisfied with their product. Examples of this can be seen in their advertisements which
perceive Coca Cola to be the ultimate thirst quencher unsurpassed by other brands
therefore consumers who see these advertisements may experience the need for a coca
cola.

Image #1 3


  


As the consumer becomes motivated to seek a solution to their problem of thirst, they
engage in two forms of information search:

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1) Internal
2) External

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Information search is significantly aided by the consumer¶s cultures and subcultures. Coca
Cola appeals to this particular segment by stressing out different values such as family,
friendship, happiness, exercise and being cool. The variety of values of Coca Cola covers a
broad range of consumers from different ethnical backgrounds as well as reflecting the
tastes and preferences of each generation.

An example of how Coca Cola targets families can be seen in the ³Coca Cola Pet
Promotion.´ This is an example of family of orientation whereby Coca Cola targets the
parents who in turn influence their children¶s decision making

Its current advertisement shows different age groups in diverse locations drinking their new
product (Coca-Cola Zero). It reaches out to the working and business class, showing offices
and other work based locations. The exposure of the distinctively designed label and the
coordinated and structured image differentiates the company¶s products from the rest of the
competition and made Coca-Cola the most recognized global product band.

Coca-Cola¶s products are in different stages of the µproduct life. For example Coca-Cola
Zero was introduced in Western countries (the U.S. and Europe) in 2005. The company is
responding to growing consumer concerns towards obesity and the changes towards
healthy and organic living. Coca-Cola Zero is at the maturity stage (well known, established
brand in a highly competitive market) and has to be defended from competition of other
companies with similar products.

Coca Cola has a competitive advantage due to the fact that 94% of the world¶s population is
familiar with the Coca Cola brand. Coca Cola however has taken a very Westernized
approach to its advertising methods that have been significantly altered and customized to
certain countries that they inhibit due to globalization of the brand.

Examples of this transition can be seen in their sales promotion activities in Pakistan:

Coca Cola Basant Festival

Coca Cola is the official sponsor of the basant festival that gives the more refreshing flavor
to the colors of basant by adding more life to the festival, giving the consumer a unique
experience they never tasted before. Now, ³where there is basant there is Coca Cola.´

Coca Cola Concerts:

Abrar-ul- haq who is a popular singer in Pakistan assisted with the brand positioning of
Coca Cola in Pakistan by publicly announcing the benefits of Coca Cola to the mind, body
and soul. This type of endorsement was specifically targeted towards the youth which is an
example of the Observational Theory.

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Coca Cola is also aggressively aligning itself with the values of environmentally concerned
consumers by:
-Reducing carbon emissions.
-Utilizing the best possible mix of energy resources.

  

Coca Cola is of the opinion that it is essential to make sure that their product is stored in the
long term memory of consumers. The tactic implied by Coca Cola is one of creating high
levels of exposure to their consumers by sponsoring big events, implementing intensive
campaigns and focusing on packaging.

Coca Cola does sponsoring for charities such as:

-Katrina evacuees
-Tsunami Reliefs.
This creates a positive image and customer perception that consumer¶s affiliate with Coca
Cola.






Coca Cola embraces the saying that, ³Color is a creation of our eyes and minds,´ by the
usage of bright and vivid red colors Coca Cola is utilizing the strongest of all colors. The
psychological effect of the color associates Coca Cola with key words such as winner,
desire and hunger for fullness and experience of life that contributes to its brand personality.
The classic typeface is meaningful because it captures the essence of the American way fo
life therefore appealing to its Cultures.

Image # 2 4

Another rather prominent feature that stands out among consumers is the actual packaging
of the Coca Cola that bores a semblance to the figure of a woman/ breasts. This
unmistakably sexual sign unconsciously attracts the attention of consumers. This can be
linked in terms of personalities to Sigmund Freud¶s Psychoanalytic theory which is based on
the hypothesis that human behavior is driven by motives that are influenced by
psychological needs, sex being one of them. The shape also bores a semblance to a
maternal meaning which involves feelings of security and peace. These two packaging
tactics are likely to be stored in a consumer¶s long term memory.
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Coca Cola applies a classical conditioning approach by linking their product with jingles and
songs. Examples of this are:
The Hilltop Story, ³ I¶d like to buy the world a coke.´
Always Coca Cola
The Bee Gees Coke Commercial.

This is an economical form of advertising that imprints upon consumers thoughts of Coca
Cola that through repetition will be stored in the long term memory of consumers.

    

Coca Cola campaigns that were immensely popular:

Coca Cola and Mc Donald¶s

A joint promotion was launched entitled, ³we go together´ whereby Coca cola was heavily
promoted throughout the Mc Donald¶s franchises.

Coca Cola and Nokia

Under the crown promotion that gave away Nokia phones with the purchase of Coca Cola
products. ³Caught Red Handed´ campaign that pin pointed consumers who were
consuming Coca Cola and awarding them with cell phones and vice versa if they were
caught conversing on a Nokia cell phone.

This is an efficient way to gain storage in long term memory of consumers because Coca
Cola is affiliating with globally recognized brands such as itself. The recognition received
was an excellent way to increase consumer awareness because consumers who are
familiar with Mc Donald¶s and Nokia and have preferences towards those products will
assume that the high standards of Mc Donald¶s and Nokia are duplicated at Coca Cola. The
campaigns also assisted in increasing brand loyalty and confidence among consumers.

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After the Information search the consumer must now evaluate the information gathered.
Coca Cola must aim to be included in the ³consideration set´ of the consumer from which
they will choose. It is futile to Coca Cola if they are not included into that set because then
they would not be an option for step 4 of the consumer decision making process.

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Changing attitudes about Coca Cola can be caused due to an approach avoidance conflicts
such as:
- The fact that consumers may develop a negative attitude towards the product due to the
unhealthy aspects of Coca Cola.
- The evaluation of competition such as Pepsi.

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The main task of Coca Cola at this stage is to convince consumers of its benefits which will
then persuade them to purchase Coca Cola.

 



Coca Cola portrays their product on three levels:

The actual product which is the parts and features, which deliver the core product.
Consumers will purchase the Coca Cola because of the high standards and high quality of
the Coca cola products. The augmented product is the extra consumer benefits provided to
the consumers such as the fulfillment of higher level needs. (Fig 2)

_

Coca Cola utilizes the individual brand strategy whereby each individual product receives
their own brand name e.g. Coca Cola. The popularity of a brand is often the deciding factor
in terms of consumer purchasing. Thankfully Coca Cola has invested several million dollars
into the development and promotion of their brand resulting in worldwide recognition. ³Coca
Cola´ is the most recognized trademark, recognized by 94% of the world¶s population and is
the most widely recognized word after ³OK.´ 

 

Coca Cola applies positioning to allow consumers to see what is unique about its products
in comparison to its competition. Its positioning is based on the process of positioning by
direct comparison and have positioned their products as to be beneficial to their target
market. An example of this is seen in the comparison of Coca Cola and Pepsi.

Image # 5 5

5.3 Price

The price of Coca Cola is one of the most important factors to consider when the consumer
is purchasing.

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Coca-Cola uses     
" (low price for product) to achieve high market shares
and revenue maximization overseas. The company¶s pricing decisions are dependent on
trade tariffs, taxes and regulations. Due to the large market share, loyal customers and
technological edge Coca Cola is currently considered to be the leader in pricing.

Coca-Cola¶s pricing strategy relies upon international and domestic competition, brand
recognition and penetration of the products etc. The costs of marketing products in
developing countries have been kept low to achieve a high profit margin. Marketing
products in developed countries are relatively important; therefore the pricing is kept higher
than other regions but with same profit margin.

Coca Cola also adapts a type of psychological pricing whereby its ending figures are 98
instead of .00 which gives the consumers the perception that the product is cheaper.

5.4 Promotion

Coca Cola utilizes both above the line and below the line promotions.

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Television and Radio- Coca Cola uses this expressive form of advertising to persuade
consumers that they are the # 1 drink through the use of repetition.

Testimonials- Coca Cola uses this type of advertising to transfer feelings of the people
existent in the commercial to the product. A very popular testimonial is the coke Santa that
creates a positive image for Coca Cola therefore creating a competitive advantage.

Image 6 6

Glittering generalities- Coca Cola has used appealing words and slogans in their
advertisements to make them seem more appealing. Coca cola aims for consumers to
perceive them as selective exposure through slogans such as:
-Open Happiness

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-Coca Cola makes good things taste better.
-Enjoy Coca Cola

Sponsoring Sports- By targeting sports fans, Coca Cola is associating themselves with the
particular sport thereby gaining recognition and increasing market share. The company has
sponsored the Olympics, NBA, NASCAR, NCAA, FIFA world cup and English Football
League.

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Green contest- Coca Cola has launched a green contest that is aimed at promoting
environmental sustainability.

Coca Cola Wonder of the World Promotion- Allowed consumers to get the opportunity to
win a dream vacation to destinations such as Paris, Hollywood, New York, Singapore and
Cairo. The promotion sparked an interest within the public who avidly collected their Coca
Cola caps.

All the promotional tactics of Coca cola aim to shape the culture of the population to think
that drinking Coca Cola is the way of life.

5.5 Personality

Coca cola has created a brand personality that consumers align themselves using an ideal
self concept. Coca Cola has done this through advertisements that emanate traits that
consumers can relate to.

Coca Cola also uses Peripheral Route with celebrities such as Elvis Presley, Marilyn
Monroe and various famous professional athletes. By doing this Coca Cola has translated
the classic elements of Coca Cola into something new and engaging that speak to today¶s
style minded consumers.

Fig # 11 7

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Coca Cola has the ability to fulfill the pre purchase evaluation of any consumer due to its
aggressive marketing mix strategies. The purchase step means that consumers have come
to a decision of the brand i.e. Coca Cola, the retailer as well as the payment method.

6.1 Place and Distribution

Coca cola does not sell directly to its consumers therefore it utilizes an indirect distribution
via intermediaries. In order for a consumer to purchase a Coca cola the following
distribution channel is observed:

-The Coca Cola Company

-Wholesalers/ Distributors
-Retail/ Corner Store/ Vending Machine
-Consumer

Some consumers may wonder why at almost every food place, gas station or convenience
store you can find a Coca Cola. This is because Coca Cola utilizes an intensive distribution
method whereby anywhere a consumer goes there is Coca Cola. This is a contributing
factor towards Coca Cola¶s popularity and it can lead consumers to perceive Coca Cola as
being reliable.

An example of this can be seen in past Coca Cola slogans 8 such as:
-All Trails Lead To Ice-Cold Coca-Cola.
-cWherever You Are, Whatever You Do, Wherever You May Be, When You Think Of
Refreshment, Think Of Ice Cold Coca-Cola.
-cAlong The Highway To Anywhere
-cCoke Follows Thirst Everywhere
-cCoca-Cola Goes Along
-cDependable As Sunshine

6.2 Price and Lifestyle

Mobile Vending- due to innovations they have developed a cash free way of purchasing
Coca Cola via SMS text message. This type of payment method appeals to on the go
consumers who are part of the modern age whereby cash is a thing of the past.

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This is an essential step in the decision making process for consumers because it decides
whether product purchase has been a success or not. After purchasing a Coca Cola the
consumer would experience either:
1) Post Purchase Dissonance
2) Post Purchases Consonance

Coca Cola has prided itself on having a high level of post purchase consonance. Evidence
of this can be found via the mobile campaign of Coca Cola and Cha Cha Mobile that
enables Coca cola to gain a deeper understanding of consumers by allowing them to text
questions and their opinions. Coca Cola found that consumers who have had their
complaints satisfactorily dealt with are more loyal than those who did not have an avenue to
express their complaint.

Another important factor when consumers purchase Coca Cola is the level of purchase
involvement.

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when consumers adapt a low purchase involvement with very limited post purchase
evaluation they generally maintain a high level of repeat purchase. When consumers
associate Coca Cola with a low level of purchase involvement it is known as a habitual
product that consumers purchase every day.

Coca Cola¶s has the ability to make consumers feel that they are experiencing an increase
in marginal benefit against a constant marginal cost. This means that Coca Cola can give
consumers so much satisfaction and enjoyment that they value it far above its price,
therefore purchasing it without hesitation.

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Coca Cola has earned its status in the minds of consumers by being a leader in the world of
style and reflecting the tastes and preference of each generation. Coca Cola¶s success as
the leading manufacturer of the carbonated drink market emanates their understanding of
the importance of the consumers psychological core as well as the consumer environment
and how it affects the decision making process.

From the development of its original logo, to the re- engineering of its trademark shaped
bottle to the launch of appealing and enticing marketing campaigns the Coca Cola
Company has consistently sought to illustrate Coke as a hallmark of quality and style that
seeks to remain ever present and relevant.

Coca Cola has portrayed its products as being modern and sophisticated that speaks the
vocabulary of contemporary consumers as well as reflects the signature style that loyal
older consumers have grown up with.

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Coca Cola has truly understood the consumer not only how they think, but also their cultural
as well as social aspects that influence their purchasing decision. This is clearly evident by
coke being recognized as the most recognized and beloved brand in the world.

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1) http://tutor2u.net/business/marketing/buying_decision_process.asp
2) http://askjason.blogspot.com/2008/06/question-what-is-maslows-hierarchy-of.html
3) http://sierrafath.wordpress.com/
4) http://vi.sualize.us/view/fabiano/853685f33fa94489d1d38659507f42a2/
5) http://whosbetter.wordpress.com/2009/11/
6) http://www.instapunk.com/archives/InstaPunkArchiveV2.php3?a=682
7) http://themarketingdirectors.wordpress.com/
8) http://www.angelfire.com/oh/cocacolaantiques/slogans.html

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Company Profile- The Coca-Cola Company (2006)

Available from: www.datamonitor.com

Coca Cola

Available from: www.coca-cola.com/ourcompany/mission

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