1 INTRODUCTION

Founded in 1892 after the formula was invented byPharmacist John S.

Pemberton
•Headquartered at Atlanta, Georgia-USA
•Currently offers more than 500 brands in over 200 countries
•Provides 1.7 billion servings a day
•Of this Coca Cola(Coke) accounts for nearly 78%
•Sales distributed as follows: 42%(USA), 38%(Mexico, India,Brazil, Japan and
China), 20%(Rest of the World)
•Financial Details : Revenue US$ 35.119 billion Operating income US$ 8.449
billion Net income US$ 11.809 billion Total assets US$ 72.921 billion Total
equity US$ 31.317 billion
•Employees: 1,39,600
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.
2 BODY
1. Market segmentation

Market segments help the company to improve their products and services,
knowing what their customers need and innovate new sectors. They markets the
products selling into different or more than one market (e.g. Diet coke) (Patrick
and Thomas, 1992). To know what their customers need, Coca-Cola uses the
consumer segmentation criteria and market into different groups: behavioural,
psychographic and profile. The major segmentation variables – demographic &
geographic, psychographic, and behavioral segmentation.

1.1. Geographic segmentation

Geographic segmentation calls for dividing the market into different geographical
units such as climatic, regions, cities, or neighborhood.

In coke marketing, main idea is to serve it cold, so they focus on hot areas of the
world, example: middle east etc and their sale increase in summer

Coca-Cola has a countrywide network of productdistribution but the company

segments more in urban and suburban areas as compared torural areas. In Pakistan,
the Coke segments more in urban and suburban areas as compare rural areas

1.2. Demographic segmentation

In demographic segmentation, the market is divided into groups on the basis of

variables such as age, family life cycle, gender, income, occupation, education,
religion, race, generation,nationality, and social class. Demographic variables are the
most popular base of Coca-ColaCompany for distinguishing their customer groups.
The reason is that consumer wants,preferences, and usage rates are often associated
with demographic variables. Another is thatdemographic variables are easier for
Coca-Cola to measure because they can evaluate orconduct surveys for the
demographic segmentation.

*Age and Life-Cycle Stage

Coca-Cola Consumer wants and abilities change with age. Age and life cycle can be
trickyvariables because there are different needs and wants as accord to the age of a
person. Themain sector in which Coca-Cola Company targets is the youngester or
youth (it ranges from the age 15-25 and reaches to 40) because there is a much need
of refreshment and energizers to cope up with their daily activities.

*Income: Coca-Cola segments different income levels by packaging. For example, for
people with alow level of income, the company has small returnable glass bottle; for
the mediocre class ithas non-returnable bottle, and for people with a high level of
income it has Coke tin.

*Gender is also an issue needed to be given prior by Coca-Cola. Men and women tend
to havedifferent attitudinal and behavioral orientations, based partly on genetic
makeup and partly on socialization practices. Coca Cola targets both genders with its
wide variety of drinks. Thismarket is relatively large and is open to both genders,
thereby allowing greater productdiversification

From this data, we can determine that consumers range from all levels of income,
with a majority falling into the $60k - $80k range. Additionally, it was interesting
to find that men purchase Coca-Cola products at a much higher rate than
women. However, due to the fact that Coca-Cola products are low priced and
readily available in many different channels (gas stations, grocery stores, etc.) they
appeal to all demographic types. This information highlights that Coca-Cola, as a
brand, is far-reaching

1.3. Psychographic segmentation

In psychographic segmentation, Coca Cola buyers are divided into different groups on
thebasis of lifestyle or personality or values. People within the same demographic
group canexhibit very different psychographic profiles, for that reason Coca Cola
Company designedand made product which are suitable for their personality

*Lifestyle:People exhibit many more lifestyles than are suggested. People differ in
attitudes, interest,activities, and these affect the goods and services they consume.
Coca-Cola Companypresented products which are suitable for modern, busy life style
(shortage of time) andmobile generation. Example: Diet Coke for healthier lifestyle,
Power Ade for who need energy and interested in sports, Real Gold for busy people in
workforce

*Social Class:Social class has a strong influence on preference in food and drinks.
Coca cola design products for specific social classes.

*Personality
Coca Cola Company is using personality variables to segment markets. They endow
Coca-Cola products with a ―brand personality‖ that corresponds to a target consumer
personality

1.4. Behavioral segmentation

In behavioral segmentation, Coca Cola buyers are divided into groups on the basis of
theirknowledge of, attitude toward, use of, or response to a product. Many marketers
believe that behavioral variables-occasions, benefits, user status, usage rate, loyalty
status, buyer-readiness stage, and attitude are the best starting points for the
construction of marketsegments.
*Occasions
Coca Cola consumers can be distinguished according to the occasions when they
develop aneed, purchase a product, or use a product. Occasions segmentation can help
firms expandproduct usage.
*Benefit sought
Different segments desire different benefits from the same products. Sometimes, for
the promotion strategy of Coke, Coca-Cola Company introduces prizes in the top
cover.
 2. MARKETING MIX
2.1 Product and Place

PRODUCT: The company has the widest portfolio in beverage industry

comprising of 3900 products. Beverages are divided into diet category, 100%
fruit juices, fruit drinks, water, energy drinks, tea and coffee etc. As per
Nielson’s data, Coca cola is the No.1 brand in sparkling beverages, juice, and
retail packaged water in 2010. Coca Cola products are sold in various
packaging and sizes. There are 21 billion dollar brands in its portfolio, of which
19 are available in low or no calorie choices. Consumer buy Coke product
because of the high quality and high standards of Cocacola products

COCA-COLA – Most popular and highest selling soft drink in history and also one of
the most recognisable brands in the world.

Sprite: A popular lemon lime flavoured soft drink introduced in 1961.

Fanta: Second oldest brand from Coca Cola, introduced in 1940, comes in orange
flavor.

Diet Coke: Known as Coca Cola light in many markets. A sugar and calorie free soft
drink. Introduced in 1982.

Coca Cola Zero: Launched in 2005, this zero sugar brand acquired the status of a
million dollar brand in 2007.

Powerade zero: Sports and fitness drink with electrolytes minus the calories.

Glaceau Vitaminwater: Nutrient enhanced water beverage available in 26 countries.

Coca Cola continuously innovates its products with more beautiful and easier-to-
usepackaging design. Coca Cola bottle packaging includes: 330ml cans, bottles Pet
1.5L, 330mltank (24L / T). The company also introduced plastic bottles 390ml with
compact and elegantdesign to meet the shopping needs of each customer

PLACE: Coca Cola being in the market for more than 130 years and operating
in more than 200 countries worldwide across 6 operating regions including
Europe, Latin America, North America, Pacific, Eurasia & Africa. An average
of 1.9 billion servings of Coca Cola are sold every day, it has developed
excessive distribution network. The wide distribution network highlights the
place strategy in Coca Cola marketing mix. Its bottling partners work closely
with its customers which include grocery stores, restaurants, street vendors,
convenience stores, movie theatres and amusement parks, among many others.
Together they execute Coca Cola’ localised strategies. These customers sell the
coca cola products to the final customers. Coca Cola need to continue to
expand its distribution network, through the agencies, cafes, restaurant, cinema
etc. and to attract dealers by increasing the support for active agents such as
gifting, decorating shopsupport, financial support

Coca Cola Corea Valentine's Day at CGV Yongsan I-Park Mall (Seoul)

2.2 PRICE AND PROMOTION

PRICE: Pepsi is Coca Cola’s arch rival and the closest competitor in the beverages
segment. Both brands price their products competitively. Prices are not too high to be
beyond the average customers’ reach and nor too low to give an impression of low
quality. Coca Cola’s pricing strategy is aimed at driving brand loyalty. Moreover, due
to the decreasing demand for the soda products, price competition between Coca Cola
and Pepsi has gotten even intense. The prices grow lower with larger size of purchase.
Bulk purchasers of the product may have to pay significantly lower prices than ones
buying single Coca Cola products
*penetration pricing: Coca Cola selects low price strategy for new products, in the
hope that will attract are a large number of customers andgain a large market share.

*Discount pricing: Coca Cola will adjust its prices to commercial customers who
payahead of time, buy products in large quantities.

PROMOTION: Coca Cola sets the bench mark for advertising and branding. The
promotional strategy of Coca Cola focuses on aggressive marketing through ad
campaigns using media like TV, online ads, print media, sponsorships etc. Coca Cola
engages in the following major sponsorship events like American Idol, BET Network,
NASCAR, NBA, NCAA, Olympic Games, FIFA worldcup etc. Coca Cola also
launches TV advertisements in various national languages across the globe. There are
more than 1250 promotional videos of Coca Cola on its official YouTube channel.

(before watching video ads) The "Happiness Factory: Campaign" inspires optimistic
consumers, spending nearly one million samples of consumer products in major cities
such as Hanoi, Ho Chi Minh City and Can Tho.

Coca Cola’s marketing expenditure in 2016 was $4 billion.In India in March 2016,
Coca Cola launched “Taste the Feeling” Campaign which seeks out to remind its
customers about the joyous and happy moments Coke brings to their lives.

3. COMPETITIVE ADVANTAGE
3.1 BRAND

Coca Cola is the winning culture of today’s world and it is about the attitude of
customer it wants to capture. Coca Cola want to become a leader of market by
having excellent quality and brand. Brand image of Coca Cola is widely known
and it is made up of creativity, excitement, hopefulness and fun.Coca Cola
want to be a brand which is known to the world for example if in blind test
people prefer Pepsi, however if the test is not blindthen they must prefer Coca
Cola over Pepsi. Coca Cola has well known trademark and it is recognized by
many around the world. The Coca Cola has very good business standing and it
has very good status. The trademark of Coca Cola is very simple yet bold and
known to many. Their brand is known worldwide in all the continenents. It is
usually the 1st that comes in mind when citing soft beverages. In 2016, Coca-
Cola has retained the No. 3 spot on Interbrand's annual Best Global Brands
ranking for the fourth consecutive year, with an estimated value of $73.1
billion. Both its name and logo are easily recognized among the huge crowd of
brands. Brand image is also a key strength . Coca Cola’s brand image is
connected with the young generation and represents energy and youthfulness.
This is a key strength which shows that it is a brand loved by youth around the
world. Most of its customers are in the age range of 13 to 35. Global expansion
also means higher sales and better revenues.

3.2 PACKAGING

Coca Cola is the number one brand in the world and its shape was first
registered as Coca Cola bottle. Packaging is considering least expensive type of
advertising and every package is five second commercial, we can think
package as a silent sales man. Package tends to draw attention of the customer,
break through the competitor untidiness, and justify the price and value for the
customer.The company use varies packaging technique to target the customers
one such mechanism is show in
the diagram below.

Packaging must insure that the

product has best quality and the
beverage or the soft drink
remains fresh at the time of
consumption. Uniformity and
reliability in the product are
critical to achieve for a company.
Coca Cola should have highest
standard of quality and safety of
the product.

Coca-Cola introduced PlantBottle™ packaging – the first-ever fully recyclable

PET plastic bottle made partially from plants – in 2009 and has since
distributed more than 15 billion of the breakthrough bottles in 25 countries.
Approximately 8% of the company’s PET plastic bottles last year contained
PlantBottle technology.

In addition to eliminating the equivalent of

approximately 140,000 metric tons of CO2
emissions from the company’s PET plastic
bottles, to date, the innovation has boosted
sales of key brands like Dasani. PlantBottle
also has strengthened Coke’s competitive
advantage with key customers, racked up
headlines and sustainable and innovation awards, and caught the collective eye
of the supply chain and investor community. Over the last few year, Since
Dasani and Coca-Cola speak with different voices and to different consumer
groups