1.

0 Introduction to Coca-Cola Company

The global brand leading in beverage industry, Coca-Cola was born on 8 of May, 1886 in
Atlanta. The first Coca-Cola syrup is produced by a local pharmacy, Doctor John Stith
Pemberton. He brought the syrup down the street and sold it for five cents a glass. The new syrup
is combined with carbonated water to produce a drink that refreshing and delicious.
The brand name Coca-Cola was created by Dr. Pemberton and his partner. Dr.
Pemberton thought that the two Cs will look great in advertising and his partner suggested the
name as Coca- cola, which is now the top global brand. Coca-Cola made their first
advertisement in The Atlanta Journal.
Unfortunately, Dr. Pemberton did not realize the potential of Coca-Cola. He sold part of
the business to various investors and before his death in 1888; he sold the entire interest in CocaCola to Asa G. Candler. Mr. Candler and then started to adopt personal control of the formula of
Coca-Cola. In 31 of January 1983, the Coca-Cola trademark was registered and in the same
year, dividend is paid to investors at the second annual meeting of the company.
The business grew continually in 1984. The manufacturing plants was started to build is
other states such as Los Angeles, Chicago, Dallas, Texas and others. In 1985, Mr. Candler
announced that Coca-Cola is now drunk in every state in United States in the annual report. In
1904, Coca-colas advertisement was firstly appeared in international magazines and its annual
sales hit one million gallon. Coca-Cola also goes by the name of the most refreshing drink in the
world in 1900s. Coca-Cola continues to develop and becomes the worlds top leading brand in
soft drink industry. Undeniable, Coca-Cola is symbolizing a huge success of a business. Thirsty
consumers around the globe now enjoy Coca-Cola Company products with more than 1.7 billion
beverages servings sold each day.

1.1 Introduction to Customer Relationship Management

CRM is the core business strategy that integrates internal processes and functions, and
external networks, to create and deliver value to targeted customers at a profit. It is grounded on
high quality customer-related data and enabled by information technology. By enabling
organizations to manage and coordinate customer interactions across multiple channels,
departments, lines of business, and geographies, CRM helps organizations maximize the value of
every customer interaction and drive superior corporate performance.

2.0 CRM Programme and Technology Implemented By Coca Cola

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In 2009, Coca Cola have implemented a technology called SAP(Systems Application and
Products). SAP was created by IBM to provide customers with the ability to interact with a
common corporate database for a comprehensive range of applications. Gradually, the
application have been assembled by today many corporations, including IBM and Microsoft, are
using SAP products to run their own business.
From SAP, Coca Cola Company developed a new device to dispense its wide range of soft
drinks. The new dispenser allowing customers to pour their own drinks from a choice of up to
100 flavors. The self-service dispenser will be set up in fast-food restaurants, convenience stores
and grocery stores and loaded with concentrated syrups that store owners can replace.
With the system, Coca Cola and store owners can forecast demand based on past usage and
order new stock accordingly. It will reduce distribution costs because the syrup cartridges are
smaller and lighter and also relay information on usage and service issues back to Coca Cola.

2.1 SWOT Analysis

Strength
The strengths of the customer relationship management of the Coca-Cola business
organization are positives elements that help promote the brand of the company. Maintaining
good customers relationship is something they do well and is under their control. The strength of
its CRM is basically what gives them the edge in most areas in business over their competitors
around the world. The following sections will outline the main strengths of Coco-Cola Customer
Relationship Management;

1. Coca-Cola provides lower prices for their products to their customers: Keeping costs
lower in producing their products to their consumers than their competitors, basically
help them to provide costs advantages which will benefit their customers all over the
world. Competitors pricing is very relevant element for Coca-Colas overall success, as
this keep them in line with their rivals, if not above them.
2. Coca-Cola has an extensive customer base system, which is a major strength regarding
sales and profit: due to their good inter and intra-relationship with their customers, CocaCola has been successfully connect the people who drink Coca-Cola as their loyal
customers where by about 80% of its revenue come from those loyal customers. CocaCola has the ability to sell and make products around the world which is unique to CocaCola.
3. Coca-Cola also introduce a promotion which is my coke Reward , this is to
encourages customers to purchase Coca-Cola products. The promotion is given when
customers collect bottle caps and packages to collect points to redeem later on either as
lower products price or free products. This particular activities help build strong customer
relationship between coca cola and its customers. As more customers participate in my
coke Rewards program the database grows and helps to personalize the customer.

4. Coca-Cola provides high quality products/services to their customers: Providing better

quality goods to their consumers are the main priority for its business, this also enable in
ensuring the customers return for more products. They ensure organized and consistent
safety and quality products though strong governance and compliance to applicable
regulations and standard policies. Coca-Cola manufactures its products following strict
rules and policies. Besides that, their products are tested in modern laboratories using
state of the art method with appropriate technologies. They specifically measure key
products and package quality attributes by focusing on ingredients and material, as well
as samples collected from trade. And lastly they make sure their products meet company
requirements and consumer expectations in the marketplace.

Weakness
Weaknesses of a company or organization such as coca cola are the things that need to be
thoroughly improved or perform better. These are the negative aspect that needs to be under
control for the benefit of the company. Weaknesses are also things that normally place the
development of an organization behind its competitors, or basically stop them being able to meet
their objectives. This below section will present main weaknesses of coca cola, which are;

1. Coca cola exhibits less price sensitivity than their new customers: Over pricing of
products/services to their new and fresh customers makes them less uncompetitive with
their competitors, which is a major weakness of the company. Coca cola normally makes
their old and regular customers feel more comfortable in enjoying less discount and
sometimes free products. Unregularly customers only enjoy free or less discount on a
lucky competition, sometimes they get less discount when they purchase more products.
2. Marketing and sales costs for maintaining customer relationship had significantly drop:
This happen basically because of the significant focus on carbonated drinks, however this
has make the CRM less effective in dealing with the excessive complain from their
customers. In result to that, coca cola lost few of its customers around the world. And as
we know a limited customer based is a major weakness for coca cola as it means they
have less people to sell or market their products to.
3. Coca cola has a much undiversified product portfolio with its CRM: Unlike most
companies customer relationship management, coca cola is still focusing only on
managing customers based who only purchase beverage products without any other
products. The overall consumption of soft drinks is stagnating and coca cola will find it
hard to penetrate to other market such as selling food or snack, when it will have to
sustain current level of growth. This makes very difficult for customers to stay on only
for type of products, and also makes the CRM less productive in the company.
Opportunity
Opportunities are external changes, trends or needs that could enhance the business or
organization strategic position of coca cola, or which could be a benefit to them. The following
are the outline opportunities coca cola is currently facing;
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1. Coca cola could enjoy much more benefits from expanding their online customer
relationship management by introducing more opportunities for online shopping for
online shoppers/internet users to get some chance to increase the CRM system in the
company. This can also increase the income of the company, which can eventually enable
them to penetrate the online marketing system.
2. In order for coca cola to grow and increase its customer base, they can make some
important changes such as providing homes for homeless people, giving out free products
for people who barely afford it or making lower prices. These opportunities will be a big
step to build a strong CRM because more customers will be attracted around the world.
3. Coca cola could also build a very strong customer relationship management by
establishing some branches in developing nations worldwide, in order to help the less
privileged to also enjoy the taste of the drink. Although developed nations have a high
presence of coca cola and have also strong CRM, some undeveloped or developing
nations are yet to be introduced. This will also build a better CRM in those nations as
well.

Threat
Threats are factors which may restrict damage or put areas of coca cola business at expose
risk. They are factors which are precisely outside of the companys control. Being aware of these
threats and being able to prepare for them makes is better for the company; this section is
valuable when considering contingency plans and strategies. Coca cola is currently facing some
main threats which are;

1. Customers relationship management might such as customers lifestyle management

could lead to less of demand for coca cola products/services. This could happen when the
customers decided to change the beverage food to other soft drinks such as Malta, natural
fruit juice, because some of the customers complain about the healthiness of coca cola
products. When the switch happens, this can affect the CRM in the company which can
tarnish the reputation of the firm.
2. Coca cola customer relationship management could be threatened by the growing power
customers have to set the price of their products/services. Customers could one point in
time demand for lower product price. When their demand is not satisfy, the customer
relationship could be broken, when they stop purchasing coca cola product.
3. The most important raw material sourcing for producing coca cola products is water,
therefore when there is a water scarcity, most likely the customer relationship could be
affected, because the only important way coca cola keep their customers in touch is
selling products to their. So when there is not water to produce the products, coca cola
will lost most of their customers since they only major in producing beverages drinks
only.

3.0 Customer Experience Concepts

Customer Experience is a target customers perception and interpretation of all the stimuli
encountered while interacting with a firm. For instances trust, transaction, advertising, product
quality, price, expectations, competitors and so on. There are a number of core concepts that
worked with customer experience management,
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Touch point (point of contact) refers to customers come into virtual or actual contact with a
companys products, services, communications, etc. Coca Cola Company main website is one of
the touch points, as customer can be loading videos, can view many countries coca cola main
pages, for instances, Malaysias coca cola main page, it shows products, the coca cola types and
nutrition information, media stream, history for the coca cola company history with years
timeline, videos, these videos show happiness, the attractive scenes to attract customers and even
recipe which how to cook with coca cola. Customer feedback is important to Coca Cola
Company, to know customers need and expectation, and discover more new surprises to attract
new customer and maintain existing customer brand loyalty. Customers can talk to Coca Cola
Company through send an email, send letter, call and submit an idea. Coca Cola has a website
which link to many areas which different websites.
Moment of truth (MOT) occurs during the moments interacts or contact between customer
and a firm, any organizational output that leads the customer to form an impression of the firm.
Coca Cola company has many vending machines around the worlds, and there are some of the
innovative vending machines, for instance, the soda giants new touch screen soft drink
dispenser, bust a Move in South Korea which dance exactly the dance steps of the popular band
2PM as the screen showed, the more the moves copied correct, more Coca cola will be dispensed
out, Happiness Strike which delivered happiness in the college campus, keep dispense coca cola
and also foods, in National University of Singapore has a hug me machine, once hug will be
dispense coca cola, Hey Pal, Need a Lift vending machine in Argentina, to celebrate the
International Friendship Day, installed this 12-ft-tall machine, which could be only reached by
helping from friends, at least 2 people to get cokes and so on. Coca cola uses a number of touch
points to interact with customer well, from products, services, places, people and technologies
work well. All these innovative vending machines form a good impression of the Coca Cola
Company.

Engagement is a word means customers emotional and rational response to a customer

experience. Companies that design those creative, innovative vending machines, this in order to
increase higher positive engagement and build up strong customer experience, to make Coca
Cola has good impression to the worldwide customers. Thus, by always offering the same
customer experience, it could not gain customer attention and good impression, therefore, Coca
Cola Company always come out new events, creative vending machine which work with modern
technology, videos and food recipes which use coca cola as one of the ingredient to cook the
foods.

3.1 How Coca Cola Offers Customer Value

Coca-Cola Company also has created the value for their customer. Actually, customer value
is important things to help the Coca-Cola Company to survive and maintain their long-term
relationship with customers. They know about the concept of customer value can divide by two
desired value and perceived value. Therefore, the customer has their desired value such as the
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customer want health and wellness trends, so the Coca-Cola Company has focused on packaging
architecture. When the customer strongly suggest for the Coca- Cola soft drink have smaller
packages and for premium packages, thus the Coca-Cola Company dont give them too much
liquid and just give them ability to refresh and enjoy but not necessarily to over-customers
needs. Besides that, they have also do the product innovation to obtain the customer value. Since,
more and more people are choosing low-calorie foods and beverage so Coca-Cola Company
focus on low-calorie beverage category, with the introduction of Diet Coke with Lemon, Diet
Coke with Lime, Diet Vanilla Coke and so on. Hence, they have building a one-to-one
relationship with customers. Marketer of Coca-Cola Company is able to listening what
customers want and the ability to communicate or understand almost on a one-to-one basis.
Another they have used the perceived value to satisfy the customer when the customer
willing pay the sacrifices like the money but the customer still can received the benefit from the
Coca- Cola Company. For examples, Coke has a mysterious taste so Coca-Cola Company create
unique benefit as provide and share more recipes to cook with Coke through their company
website. This can be created the customer value when the customer buy it and cook it. And this
Coke seems to be always having good taste with sandwich, chips and snack for young
generation. Based on the tagline of Coca-Cola Company is Open Happiness, so they always
think about many ways to achieve and satisfy their customer. Thence, they ran a promotion that
many people know which is called Share a Coke that was very effective. For instance, the
customer can write their name in virtual can and then share the value to other people. And during
the Chinese New Year in 2015, Coca-Cola Company printed lucky Chinese words onto
Malaysian edition Coke can such as for fortune, for prosperity, for peace and so on.
Furthermore, some people buy Coke because it is widely accepted by any countries. In
addition, Coca-Cola Company maintains the longest continuous relationship with the Olympic
Movement. So, almost the customer and athlete will feel to reduce perceived risk because that
movement is very famous and everyone know it, means that Coca-Cola Company create the
value proposition which is promise of value to be delivered by them to solve the customer care
about drinking a Coke. Moreover, every year they donate their profits to charity organizations in
Turkey like Coco-Cola Hayata Arti Vakfi. Based on this situation, the customer will believe the
Coca-Cola Company are mainly related with environmental and friendly-company aspect. At
the end of the 2014, Coca-Cola Company and Monster Beverage Corporation announced plans
for a long-term strategic partnership to develop for both companies in the global energy drink
category. For the product synergies, both companies simultaneously complement resources and
assets, that the Coca-Cola Company can create value for customers come from the Monster
Beverage Corporation.

4.0 Managing The Customer Life Cycle. Explain the Relationship Between Theory And
Practice In The Company.
Customer Reach

Coca-Cola Company understand their product have a target audience that can be defined.
Firstly, their primary goal is to create marketing campaign that speak to them directly. Thus, they
will take the sales promotion to get the attention of the people they want to reach. Because they
know sales promotion is any behavior-triggering temporary incentive aimed at customer. For
example, they will give some discount for any customer who able to buy more than 24 pack of
Coca-Cola Regular, then get 25% off. In addition, they also give the coupon to customer
purchase one get one free. And they have the free premiums such as calendar or candy tray
during the Merry Christmas. Furthermore, Cola-Cola Company use the merchandising in order to
any behavior-triggering stimulus or pattern of stimuli that takes place at retail. As the Coca-Cola
Company provide a Coca-Cola merchandising sale truck to sell their product in the department
store. Besides that, they designed or placed more their merchandise in retail store to attain
customer extra attention.

Customer Acquisition
As a marketers of Coca-Cola, they able to use operational customer relationship
management tools. For example, they will apply event-based management to generate new
customer. Based on this situation, Coca-Cola Company has launched gesture based marketing in
Singapore. That is a coke vending machine and in front the machine have a logo name is Hug
Me. And this vending machine just to receive the currency of hugs instead of money. Moreover,
the consumers have to squeeze the sides of the soda dispenser in a specific way to make a free
Coke come out. Thats means Coca-Cola Company disseminate their marketing message Open
Happiness to reach the remaining people and attract the people willing to take some sort of
action such as Coca-Cola Hug Machine is to deliver the happiness to all of people in there.
Therefore, they hope the Hug can goes spread throughout the Asia.

Customer Retention
The definition of customer retention is the maintenance of continuous trading relationships
with customers over the long term. It is also the mirror image of customer defection. (Buttle,
2009) As we know that, Coca-Cola Company is the first place for soft drink sales in Malaysia.
They have many strong strategies to retain customer to purchase their soft drink. First of all, they
must innovativeness either for their product and packaging. For example, they have provide
many different types of Cola drink such as classic, light, diet and others. This will satisfy those
customers to select what they prefer because some of them will like to get healthy and choose the
sugar free drink. Moreover, the different types of packaging also will retaining the customer and
sales. The packaging included 250ml, 500ml and 1500ml. The company help their customer
easily to choose what they want. For example, customer will purchase the 1500ml if they want to
make a party in house and share with guests. On the other hand, customer more prefer to
purchase 250ml for personal drink. Furthermore, promotion also is the one of the strategies to
make customer retention. Sales promotion can build repeat purchase. For example, the limited
edition glasses from Coca-Cola Company was made promotion in MacDonalds with purchase
one meal. Moreover, free a coke can with purchase of GSC combo 3 in Golden Screen Cinema.
A successful to customer retention, it will build the brand loyalty for the customer.
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Customer Commitment
Customer commitment mean that how a company to serve their customer for make a trust
with their customer and maintain a good long-term relationship with customer. The customer
trust will help the company to get the higher sales and hit the goals of company. Moreover, it
may help the company to operate for long period. There has three forms of commitment which is
instrumental, relational and values-based. For example, as the worlds largest beverage company,
Coca-Cola Company promised to bring safe, great-tasting, quality beverages to customers at a
rate of 1.8 billion servings per day. Their beverages offer hydration, refreshment, and moments
of affordable happiness for people worldwide. They are committed to making sure all of the
thousands of beverages they produce meet the highest standards for safety and quality. As a
customer, we wouldnt see any soft drink that selling in the market is expired made from CocaCola Company because they promised to exchange fresh beverages with the retailer if expired
and hasnt sell out. Furthermore, the price of the drinks maintain at low cost even though the
economy deficit in Malaysia. They keep the same quality of drinks and never change the taste.
This actions are make customer trust, then build the customer loyalty to their product.

5.0 Recommendation and Conclusion

The largest challenge of soft drink industry is the increase of healthy concerns for
carbonated drinks. In 2000, more than one-third of elementary schools, half of middle and junior
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high schools, and close to three-fourths of senior high schools had contracts giving soft drink
companies the rights to sell their product at school. In late 2001, Surgeon Generals report on the
obesity epidemic, the debate about junk food marketing has heated up on a number of fronts.
Coca Cola could invest more in diet-oriented programs, such as associate with schools and
design healthy improved curriculums or invest more in developing and promoting diet-oriented
soft drinks, which convert the obesity epidemic images of Coca Cola and regain the younger
market.
Flexible market strategies and amazing innovation capacity make Coca-Cola keep leader
position in soft drink field. However, the labels of Junk Food and cause obesity epidemic are
the original sins of soft drinks. To get rid of this image, Coke not only window dressing its brand
image but also make profits from other non-soft drink fields.
Throughout the overall research on the Coca Cola Company, we have found the keys which
lead to the success to this world-leading company. Coca Cola Company maintained close
relationship with their customers. Coca Cola understand the important of customer value, they
listen to customers suggestions and try to improve by that. The proposition for Coca-Cola is
providing refreshment, value, joy and fun to customers, then successfully nurture and protect
Coca-Cola.

References

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1. Buttle, F. (2009). Customer Relationship Management (second edition ed., Vol. 9). Elsevier
Ltd.
2. Melbourneer. (2013, 12 24). Retrieved from http://melbourneer.com/2013/12/24/being-amerchandiser-for-coca-cola-you-can-make-some-awesome-displays-this-took-me-andmy-salesman-5-hours-to-make/
3. Morgan, R. H. (1994). The commitment-trust theory of relationship marketing. Journal of
Marketing, pp. 1-38.
4. SGNewsMan. (2012, 11 1). Singapore Promotions. Retrieved from SGNews:
http://singpromos.com/dining-restaurants-food/coca-cola-free-christmas-caravan-packwith-purchase-1-nov-26-dec-2012-47065/
5. SGNewsMan. (2014, 5 14). Singapore Promotions. Retrieved from SGNews:
http://singpromos.com/dining-restaurants-food/coca-cola-25-off-24-pack-promo-14-may2014-96957/

6. Dispensing Happiness: 12 Innovative Coca-Cola Vending Machines. (n.d.). Retrieved March

8, 2015, from http://www.coca-colacompany.com/innovation/dispensing-happiness-12innovative-coca-cola-vending-machines-in-action

7. Coca-Cola | Olympic Sponsor, Non-Alcoholic Beverages | Olympic.org. (n.d.). Retrieved

March 8, 2015, from http://www.olympic.org/sponsors/coca-cola

8. Coca-Cola Company Focuses on Value Creation, 1-to-1 Customer Relationships |

Loyalty360.org. (n.d.). Retrieved March 8, 2015, from
http://loyalty360.org/resources/article/coca-cola-focuses-value-creation

9. Recipes. (n.d.). Retrieved March 8, 2015, from http://www.coke.com.my/en/recipes/

10. Coca Cola Company. (n.d.). Retrieved March 8, 2015, from

http://www.ukessays.co.uk/essays/marketing/coca-cola-company.php#ixzz3ThkOGWGj

11. Coca-Cola Beverages & Products World of Coca-Cola. (n.d.). Retrieved March 8, 2015,
from http://www.worldofcoca-cola.com/about-us/coca-cola-beverages-products/

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12. Coca-Cola Chinese New Year Customized Coca-Cola Cans #sharehappiness! (2015, January
25). Retrieved March 8, 2015, from http://www.malaysianflavours.com/2015/01/cocacola-chinese-new-year-customized-coca-cola-cans-sharehappiness.html

13. Coke and Monster Announce Long-Term Partnership. (n.d.). Retrieved March 8, 2015, from
http://www.coca-colacompany.com/coca-cola-unbottled/coke-and-monster-announcelong-term-partnership

14. Customer experience management technologies shape business strategies. (n.d.). Retrieved
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15. Products. (n.d.). Retrieved March 8, 2015, from http://www.coke.com.my/en/products/

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Retrieved from http://www.coca-colacompany.com/sustainabilityreport/me/productsafety- and-quality.html

Assignment Marking Form

Tutorial Group No.
Team No.
Tutor Name
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Team Leader Name & ID

Team Members Name, ID &
Course

1.
2.
3.
4.
5.

Assessment areas or chapters

Marks
Allocation

1.

Introduction to the company and CRM

programme.

15

2.

Evaluate the CRM programme and technology

implemented by the company. Evaluate CRM can
apply SWOT or/ and FIVE FORCE analysis.

20

3.

Explain customer experience and customer value

of case company. Discuss the relationship between
theory and practice in the company.

20

4.

Managing the customer life cycle. Explain the

relationship between theory and practice in the
company.

20

5.

Recommendation and Conclusion

15

6.

Report format (5 marks) and proper referencing

using APA (5 marks).

10

Total

100 marks

Total Marks Convert to 40 marks

40 marks

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(Good), (Very Good)

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