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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
2 Coca Cola 1.0IntroductionCoca 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 momentummaking it a globally recognized brand with
a portfolio of more than 3000 beverages. CocaCola has led the soft drink market
expanding to other markets achieving an oligopolyposition with an immense market
share making them the global leader for carbonateddrinks. But how has this
iconic brand become a legend? More importantly is why consumersare still
purchasing Coca Cola? The purpose of this assignment is to demonstrate howCoca
Cola has become a success utilizing the consumer decision making process as
theframework upon which the principles of consumer behavior will be
integrated.2.0Decision Making ProcessThe consumer decision making process is
essential to understanding the various decisionprocesses a buyer experiences.
The decision making process is integral for companies tounderstand how buyers
think and behave when making purchasing decisions. Companiesutilize the decision
making process because they are concerned with both the practicalneeds of the
buyer and the emotional or personal needs of the individual.Fig 1 Decision
Making Process1 1
http://tutor2u.net/business/marketing/buying_decision_process.asp
3 3.0Need Recognition and Problem Awareness What triggers a consumers want for
a coke? When consumers are affected by an internalstimulus such as thirst,
problem awareness is created. In order to satiate this needconsumers are exposed
to a variety of thirst quenchers for example water, juice etc.However consumers
choose to consume a Coca Cola beverage instead which indicatestheir satisfaction
is fulfilled by a want for this particular beverage.3.1MotivationCoca Cola
appeals to two types of needs within a consumer. The first is the biogenic
needwhich 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 levelneeds such as hedonic needs, ego needs and self
actualization. Therefore Coca Colaunderstands the importance of targeting higher
level needs in order to build brand loyalty for ensuring consistent sells.Fig. 2
Maslow Hierarchy of Needs2 3.2 Motivation and InvolvementThirst 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
strongcampaigns 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 consistedof 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 2
http://askjason.blogspot.com/2008/06/question-what-is-maslows-hierarchy-of.html

4 created an environment that suggested that Coca Cola wants to be part of

their lives. Thistype of involvement appeals to consumers and increases their
favorability towards CocaCola. It can also lead to consumers being motivated to
purchases Coca Cola as well ascreate brand awareness.3.3PromotionConsumers 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 refreshesCoca Cola has attempted to make consumers believe that consuming a
Coca Cola entails arefreshing; exciting experience that triggers an emotional
response that can only besatisfied with their product. Examples of this can be
seen in their advertisements whichperceive Coca Cola to be the ultimate thirst
quencher unsurpassed by other brandstherefore consumers who see these
advertisements may experience the need for a cocacola.Image #13 4.0Information
Search As the consumer becomes motivated to seek a solution to their problem of
thirst, theyengage in two forms of information search: 3
http://sierrafath.wordpress.com/
5 1) Internal2) External4.1Culture and SubcultureInformation search is
significantly aided by the consumer¶s cultures and subcultures. CocaCola 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 abroad range of consumers from different ethnical backgrounds
as well as reflecting thetastes and preferences of each generation.An example of
how Coca Cola targets families can be seen in the ³Coca Cola PetPromotion.´ This
is an example of family of orientation whereby Coca Cola targets theparents who
in turn influence their children¶s decision makingIts current advertisement
shows different age groups in diverse locations drinking their newproduct
(Coca-Cola Zero). It reaches out to the working and business class, showing
officesand other work based locations. The exposure of the distinctively
designed label and thecoordinated and structured image differentiates the
company¶s products from the rest of thecompetition 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-ColaZero was introduced in Western countries
(the U.S. and Europe) in 2005. The company isresponding to growing consumer
concerns towards obesity and the changes towardshealthy and organic living.
Coca-Cola Zero is at the maturity stage (well known, establishedbrand 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 isfamiliar with the Coca Cola brand.
Coca Cola however has taken a very Westernizedapproach to its advertising
methods that have been significantly altered and customized tocertain 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
FestivalCoca 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 uniqueexperience 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,
bodyand soul. This type of endorsement was specifically targeted towards the
youth which is anexample of the Observational Theory.
6 Coca Cola is also aggressively aligning itself with the values of
environmentally concernedconsumers by:-Reducing carbon emissions.-Utilizing the
best possible mix of energy resources.4.2 MemoryCoca Cola is of the opinion that
it is essential to make sure that their product is stored in thelong term memory
of consumers. The tactic implied by Coca Cola is one of creating highlevels of
exposure to their consumers by sponsoring big events, implementing
intensivecampaigns 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
CocaCola.4.3ProductCoca Cola embraces the saying that, ³Color is a creation of
our eyes and minds,´ by theusage of bright and vivid red colors Coca Cola is
utilizing the strongest of all colors. Thepsychological 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 folife therefore appealing to its Cultures.Image # 24 Another rather
prominent feature that stands out among consumers is the actual packagingof the
Coca Cola that bores a semblance to the figure of a woman/ breasts.
Thisunmistakably sexual sign unconsciously attracts the attention of consumers.
This can belinked in terms of personalities to Sigmund Freud¶s Psychoanalytic
theory which is based onthe hypothesis that human behavior is driven by motives
that are influenced bypsychological needs, sex being one of them. The shape
also bores a semblance to amaternal meaning which involves feelings of security
and peace. These two packagingtactics are likely to be stored in a consumer¶s
long term memory. 4
http://vi.sualize.us/view/fabiano/853685f33fa94489d1d38659507f42a2/
7 Coca Cola applies a classical conditioning approach by linking their product
with jingles andsongs. Examples of this are:The Hilltop Story, ³ I¶d like to buy
the world a coke.´Always Coca ColaThe Bee Gees Coke Commercial.This is an
economical form of advertising that imprints upon consumers thoughts of CocaCola
that through repetition will be stored in the long term memory of consumers.4.4
PromotionCoca Cola campaigns that were immensely popular:Coca Cola and Mc
Donald¶sA joint promotion was launched entitled, ³we go together´ whereby Coca
cola was heavilypromoted throughout the Mc Donald¶s franchises.Coca Cola and
NokiaUnder the crown promotion that gave away Nokia phones with the purchase of
Coca Colaproducts. ³Caught Red Handed´ campaign that pin pointed consumers who
wereconsuming Coca Cola and awarding them with cell phones and vice versa if
they werecaught conversing on a Nokia cell phone.This is an efficient way to
gain storage in long term memory of consumers because CocaCola is affiliating
with globally recognized brands such as itself. The recognition receivedwas an
excellent way to increase consumer awareness because consumers who arefamiliar
with Mc Donald¶s and Nokia and have preferences towards those products
willassume that the high standards of Mc Donald¶s and Nokia are duplicated at
Coca Cola. Thecampaigns also assisted in increasing brand loyalty and confidence
among consumers.5.0Evaluation of Alternatives 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 whichthey will choose.
It is futile to Coca Cola if they are not included into that set because
thenthey would not be an option for step 4 of the consumer decision making
process.5.1AttitudesChanging attitudes about Coca Cola can be caused due to an
approach avoidance conflictssuch as:- The fact that consumers may develop a
negative attitude towards the product due to theunhealthy aspects of Coca Cola.-
The evaluation of competition such as Pepsi.
8 The main task of Coca Cola at this stage is to convince consumers of its
benefits which willthen persuade them to purchase Coca Cola.5.2 ProductCoca 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 tothe consumers such
as the fulfillment of higher level needs. (Fig 2)Branding Coca Cola utilizes the
individual brand strategy whereby each individual product receivestheir 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 dollarsinto the development and promotion of their brand
resulting in worldwide recognition. ³CocaCola´ is the most recognized trademark,
recognized by 94% of the world¶s population and isthe most widely recognized
word after ³OK.´ Positioning Coca Cola applies positioning to allow consumers to
see what is unique about its productsin comparison to its competition. Its
positioning is based on the process of positioning bydirect comparison and have
positioned their products as to be beneficial to their targetmarket. An example
of this is seen in the comparison of Coca Cola and Pepsi. Image # 55 5.3
PriceThe price of Coca Cola is one of the most important factors to consider
when the consumer is purchasing. 5http://whosbetter.wordpress.com/2009/11/
9 Coca-Cola usesµpenetrationpricing¶(low price for product) to achieve high
market sharesand revenue maximization overseas. The company¶s pricing decisions
are dependent ontrade tariffs, taxes and regulations. Due to the large market
share, loyal customers andtechnological edge Coca Cola is currently considered
to be the leader in pricing.Coca-Cola¶s pricing strategy relies upon
international and domestic competition, brandrecognition and penetration of the
products etc. The costs of marketing products indeveloping countries have been
kept low to achieve a high profit margin. Marketingproducts 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 98instead of .00 which
gives the consumers the perception that the product is cheaper.5.4 PromotionCoca
Cola utilizes both above the line and below the line promotions.Above the
lineTelevision and Radio- Coca Cola uses this expressive form of advertising to
persuadeconsumers that they are the # 1 drink through the use of
repetition.Testimonials- Coca Cola uses this type of advertising to transfer
feelings of the peopleexistent in the commercial to the product. A very popular
testimonial is the coke Santa thatcreates a positive image for Coca Cola
therefore creating a competitive advantage.Image 66 Glittering generalities-
Coca Cola has used appealing words and slogans in their advertisements to make
them seem more appealing. Coca cola aims for consumers toperceive them as
selective exposure through slogans such as:-Open Happiness
6http://www.instapunk.com/archives/InstaPunkArchiveV2.php3?a=682
10 -Coca Cola makes good things taste better.-Enjoy Coca ColaSponsoring Sports-
By targeting sports fans, Coca Cola is associating themselves with theparticular
sport thereby gaining recognition and increasing market share. The company
hassponsored the Olympics, NBA, NASCAR, NCAA, FIFA world cup and English
FootballLeague.Below the lineGreen contest- Coca Cola has launched a green
contest that is aimed at promotingenvironmental sustainability.Coca Cola Wonder
of the World Promotion- Allowed consumers to get the opportunity towin a dream
vacation to destinations such as Paris, Hollywood, New York, Singapore andCairo.
The promotion sparked an interest within the public who avidly collected their
CocaCola caps.All the promotional tactics of Coca cola aim to shape the culture
of the population to thinkthat drinking Coca Cola is the way of life.5.5
PersonalityCoca cola has created a brand personality that consumers align
themselves using an idealself concept. Coca Cola has done this through
advertisements that emanate traits thatconsumers can relate to.Coca Cola also
uses Peripheral Route with celebrities such as Elvis Presley, MarilynMonroe and
various famous professional athletes. By doing this Coca Cola has translatedthe
classic elements of Coca Cola into something new and engaging that speak to
today¶sstyle minded consumers.Fig # 117 7
http://themarketingdirectors.wordpress.com/
11 6.0Purchase Coca Cola has the ability to fulfill the pre purchase evaluation
of any consumer due to itsaggressive marketing mix strategies. The purchase step
means that consumers have cometo a decision of the brand i.e. Coca Cola, the
retailer as well as the payment method.6.1 Place and DistributionCoca cola does
not sell directly to its consumers therefore it utilizes an indirect
distributionvia intermediaries. In order for a consumer to purchase a Coca cola
the followingdistribution 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
conveniencestore you can find a Coca Cola. This is because Coca Cola utilizes an
intensive distributionmethod whereby anywhere a consumer goes there is Coca
Cola. This is a contributingfactor towards Coca Cola¶s popularity and it can
lead consumers to perceive Coca Cola asbeing reliable.An example of this can be
seen in past Coca Cola slogans8such as:-All Trails Lead To Ice-Cold Coca-Cola.-
Wherever You Are, Whatever You Do, Wherever You May Be, When You Think Of
Refreshment, Think Of Ice Cold Coca-Cola.- Along The Highway To Anywhere- Coke
Follows Thirst Everywhere- Coca-Cola Goes Along- Dependable As Sunshine 6.2
Price and LifestyleMobile Vending- due to innovations they have developed a cash
free way of purchasingCoca Cola via SMS text message. This type of payment
method appeals to on the goconsumers who are part of the modern age whereby cash
is a thing of the past. 8
http://www.angelfire.com/oh/cocacolaantiques/slogans.html
12 7.0Post Purchase EvaluationThis is an essential step in the decision making
process for consumers because it decideswhether product purchase has been a
success or not. After purchasing a Coca Cola theconsumer would experience
either:1) Post Purchase Dissonance2) Post Purchases ConsonanceCoca Cola has
prided itself on having a high level of post purchase consonance. Evidenceof
this can be found via the mobile campaign of Coca Cola and Cha Cha Mobile
thatenables Coca cola to gain a deeper understanding of consumers by allowing
them to textquestions 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 toexpress their complaint.Another important factor
when consumers purchase Coca Cola is the level of purchaseinvolvement.Low Level
of Purchase Involvement when consumers adapt a low purchase involvement with
very limited post purchaseevaluation they generally maintain a high level of
repeat purchase. When consumersassociate Coca Cola with a low level of purchase
involvement it is known as a habitualproduct that consumers purchase every
day.Coca Cola¶s has the ability to make consumers feel that they are
experiencing an increasein marginal benefit against a constant marginal cost.
This means that Coca Cola can giveconsumers so much satisfaction and enjoyment
that they value it far above its price,therefore purchasing it without
hesitation.8.0ConclusionCoca 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 asthe leading manufacturer of
the carbonated drink market emanates their understanding of the importance of
the consumers psychological core as well as the consumer environmentand how it
affects the decision making process.From the development of its original logo,
to the re- engineering of its trademark shapedbottle to the launch of appealing
and enticing marketing campaigns the Coca ColaCompany has consistently sought to
illustrate Coke as a hallmark of quality and style thatseeks to remain ever
present and relevant.Coca Cola has portrayed its products as being modern and
sophisticated that speaks thevocabulary of contemporary consumers as well as
reflects the signature style that loyalolder consumers have grown up with.
13 Coca Cola has truly understood the consumer not only how they think, but
also their culturalas well as social aspects that influence their purchasing
decision. This is clearly evident bycoke being recognized as the most recognized
and beloved brand in the world.
14 9.0Bibliography and ReferencesReferences1)
http://tutor2u.net/business/marketing/buying_decision_process.asp2)
http://askjason.blogspot.com/2008/06/question-what-is-maslows-hierarchy-of.html3
)
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=6827)
http://themarketingdirectors.wordpress.com/8)
http://www.angelfire.com/oh/cocacolaantiques/slogans.htmlBibliographyBooksBlackw
ell,R.D.
Miniard, P.W. & Engel, J.F. 2006. Consumer Behaviour. 10thEdition.Thomson South
WesternBlythe, J., 2003. Essentials of Marketing Communications. 2ndEdition.
Harlow: PearsonEducation Ltd.Cole, G.A.2004. Management Theory and Practice.
6thEdition. London: Geraldine Lyons.Kotler, P. Armstrong, G., 2006. Principle of
Marketing. 11thEdition. New Jersey: PearsonPrentice Hall.Kotler, P. et al.,
2009. Marketing Management. Harlow: Pearson Education Ltd.Schiffman, L.G. &
Kanuk, L. 2010. Consumer Behaviour. 10thEdition. Financial TimesPress
PearsonSolomon M et al. 2010. Consumer Behaviour: A European Perspective,
4thEdition. FTPrentice Hall, England.Weeks, P. Scott, B & Gray, L., 2009.
Managing People, Finance & Marketing. 2ndEdition.Harlow: Pearson Education
Ltd.WebsitesCompany Profile- The Coca-Cola Company (2006)Available from:
www.datamonitor.comCoca Cola Available from:
www.coca-cola.com/ourcompany/mission
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