Discussion and analysis of the marketing strategy of coke zero in the us market robert sarich, riasat zaman, and chinmoy misra coke zero 375ml cans as sold in vending machines were launched in the us market in 2005, as a sugarfree version of coca cola that maintains the same taste. The price of coca cola is quite inelastic to demand as there is a large degree of consumer sovereignty towards the product. Coca cola company strategy of sales was price penetration where low price are charged and the company attends large market as possible. Cocacola working its way through price increases 2019. Cocacola has defended its strategy in the us amid questions from investors about whether it was acting as a spoiler in the soft drinks industry by. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. Coca cola company report contains more detailed analysis of coca cola marketing strategy covering issues of coca cola s public relations, events and experiences and direct selling. However, there are many competitors in the market so a substantial increase or decrease in price will have an effect, but not a huge one. Project report marketing management product strategy of. The importance of pricing the price a business charges for its product or service is one of the most important business decision that.
An evaluation of marketing strategies undertaken by coca. It identifies all the key strengths, weaknesses, opportunities and threats that affect the company the most. If price of the coca cola exceed too much from the pepsi then people will shift to the pepsi cola and on the other hand if the price of coca cola decreases people might get the. Beverage market is said to be a oligopoly market few sellers and large buyers. Coca cola has effects on the teeth which is an issue for health care. The report also comprises application of swot, pestel, porters five forces and valuechain analyses on coca cola company, along with analysis of companys. To judge the effectiveness of the strategy that coca cola employed in brazil, it is relevant to see the current consumption of the drinks under the coca cola umbrella. Coca cola has therefore taken the strategy option of hybrid, in which case it maintains its price but tries to differentiate itself from competitors. Coca cola is a multinational corporation having its route in almost every part of the world. The amount of money charged for a product or service, or sum of the values that consumers exchange for. One of the biggest competitors that coca cola has in the beverage market is pepsi. Product is the first and most important element of the marketing mix. Pdf coco cola marketing strategy and market plan ekin duran. The strategy of the coca cola company according to its website is to, be the worlds most recognized family brands, not just of soft drinks, but of juice drinks, sports drinks, water and milk, to maintain a trusted local presence in every community served, to increase annual.
Because of this, coca cola has come up with long term objectives. It also has got sugar by which continuous drinking of coca cola may cause health problems. Free the cocacola company and market pricing strategies essay. Today coca cola sells products in over 300 countries worldwide, and has over 3,000 different beverages. Evaluation of cocacolas current product and pricing policy. This document describes the the pricing journey of cocacola india right. The prices lower as the size of the package grows bigger. Various macroeconomic factors such as inflation and labor price would impact operations of coca cola. Coca cola is one of the most leading company in soft drink beverage industry. Unlike price skimming where higher price are charged. Moreover, due to the decreasing demand for soda products, price competition between coca cola and pepsi has gotten even intense. Pricing strategy used by cocacola there are three different pricing strategies which a company can primarily follow.
The beverage market is considered to be an oligopoly in which there are few sellers and many buyers. Coca cola started with a pricing strategy based on the basis of competition. The marketing mix is a standard strategic tool used to formulate a plan for product development and promotions. Operation strategy of coca cola 2990 words bartleby. The company has to be quite careful with the pricing of their products, if coke prices its products too high as compared to pepsi in a particular segment, then the. Here, different types of strategy analysis tools have been used and we try to find out the actual position or environment of the coca cola company. Cocacola, brand image, non alcoholic beverage, price value, preference, consumers. Quincey, chief executive officer of coca cola, in a feb. Being addicted to coca cola also is a health problem, because drinking of coca cola daily has an effect on your body after few years.
Coca cola has had to remain tremendously fluent and consistent with their pricing strategy. The product is controlled by the coca cola company, a. Like any company who has successfully been existing for more than a century, coca cola has had to remain tremendously fluent and consistent with their pricing strategy. Pricing strategies by cocacola in india slideshare. It has reliably used its valuing technique as an encouragement to test, expecting to transform trial into habit. Product strategy was strongly applied such as the modification of its product as well as after sales services which all help to facilitate. More than 70 percent of they income comes from outside the u. Coca cola marketing mix 4ps strategy mba skoolstudy. It contributes to the highest sales of soft drinks globally. The company has had a mix of pricing, advertising, sales promotion programs, product innovation, increased efficiency in production techniques, the introduction of new packaging, new vending and. Coca cola has intense competition with pepsi so its pricing cant exceed too much nor decrease too much as compared to the price of pepsi cola. It was invest by dr john pemberton, who was a pharmacist in atlanta. The history of coca cola began over a century ago since 1886.
According to coca cola s own figures, last years consumption for brazil was. Coca cola s traditional marketing strategies essay 1461 words 6 pages. The parent product of the company is cocacola drink, which is a flagship product. The coca cola company has continued to be one of the leading firms that provide refreshments to customers through creating value to consumers, making a difference, and inspiring moments of optimism and happiness. International pricing coke also uses the international pricing strategy. This coca cola swot analysis reveals how the company controlling one of the most iconic brands of all time used its competitive advantages to become the worlds second largest beverage manufacturer. Nowadays more expenses are spent on advertising by soft drink companies rather than on manufacturing.
Pdf as a chandler founded the coca cola company back in 1886 and it is headquarter in atlanta. Coca cola is known as soft drink of the world bell, 2004. Evaluating the growth and competitive strategy of coca cola. Coca cola swot analysis 6 key strengths in 2020 sm insight. Essays related to the coca cola company and market pricing strategies. The coca cola company branding strategies coca cola is one of the most recognizable brands around the globe. The coca cola brand is globally valued and recognized. Over the past decade, coca cola has been experiencing a decline in sales due to increasing health and obesity concerns. Coca cola follows a 2nd degree price discrimination strategy in its marketing mix. Coca cola follows competitive pricing for their products.
Discussion and analysis of the marketing strategy of coke zero in. Once coca cola have carefully analysed the internal and external business. Charging premium prices initially to earn maximum revenue. Pdf as a chandler founded the coca cola company back in 1886 and it is headquarter in atlanta, georgia, united states. The drink did not have bubbles at that time and started selling. Pricing strategy today, it became quite popular for startups, for a day or two, to offer their service or a product for free, and then increase their prices. Project report marketing management product strategy of coca cola. The statement of purpose for coca cola is to revive the world, to motivate snapshots of positive thinking, and to make esteem and have any kind of effect wherever we lock in. Coca cola founded in 1886 by dr jhon pemberton worlds leading manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups.
Analysis of brandlevel strategic pricing between cocacola company and pepsico. For example, an incidence approach to pricing was used more often, whereby both cocacola and the bottler shared in the profit made by the combined system, rather than a fixed price per unit. In this report, an inner view of coca cola company has been revealed. Examining the mix for a successful company like coca cola can help a business leader understand the dynamics and synergy involved between the four core elements product, place, price and promotion. Their pricing strategy is based on the competitors pricing, pepsi is the direct competitor to coke. It is currently involved in retailing, marketing nonalcoholic beverage syrups, manufacturing and other stuff. The brand is familiar to people all around the world, and is available in many. In the sense they charge different prices for products in different segments. Statement of the problem in current business activities, the success or failure of any business organization hinge on how best. Coke has brought in a revolution especially in indian markets with the rs. The price increases were in the marketplace more fully by the end of the summer and coming into the fourth quarter, said james robert b. The coca cola company tccc has multiple business units with a wide range of products that span the whole world. Pdf strategic marketing plan for cocacola 2016 researchgate. To fully understand how they act, lets discuss the components of their marketing strategy.
It has consistently wielded its pricing strategy as an invitation to sample, aiming to turn trial into addiction. This report shows the main strategy aspects related with the coca cola competitive advantages. The worldwide popularity of coca cola was a result of simple yet groundbreaking marketing strategies like consistency. Market segmentation coca cola, which is one of the largest multinational enterprises in the world, has been successfully applying traditional and digital marketing strategies to promote their products.
Below is the pricing strategy in coca cola marketing strategy. Each subbrand of coca cola has different pricing strategy. Discussion and analysis of the marketing strategy of coke. Cocacola marketing strategy is one of the most complete and diverse strategies today. Coca cola s pricing strategy is aimed at driving brand loyalty. An example for such successful implementation of marketing strategy is coca cola.
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