Coke ’’creating the image.’’
Coca cola
Brand review
About the company:
Founded in 1886, Coca Cola Company is the world’s leading manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups, used to produce more than 230 beverage brands. The Their local strategy enables them to listen to all the voices around the world asking for beverages that span the entire spectrum of tastes and occasions.
they believe , What people want in a beverage is a reflection of who they are, where they live, how they work and play, and how they relax and recharge.Coca-C
They are determined not only to make great drinks, but also to contribute to communities around the world through our commitments to education, health, wellness, and diversity.
· Target market: The main consumers of this market are people in the age group of 30 and below. This can be seen by Coca-Colas advertising campaigns, which are aimed towards the young, by featuring well known personalities popular to this age group, ranging from entertainers such as aamir khan, aishwarya rai, hritik roshan, ..
.positioning:
Pepsi has definitely leaned towards the appeal of celebrities, popular music, and young people in television commercials, while Coke relies more heavily on images of happiness and togetherness, tradition, and nationalism, perpetually trying to cash in on its original lead. In a simplified sense, you could sum up the strategies as Coke: Old, Pepsi: New. In fact, as we will see, when Coca-Cola tried something new, it was disaster.
· segmentation:
The following major segments of coke drinkers have been identified:
FASHIONABLE BRAND CONSCIOUS CONSUMERS
This segment of people are generally in their twenties, who are uni students or make up the working class, drive fast cars (or would like to) they socialise with friends and go to parties and dance clubs.They are carefree and are freestyle.When they buy coke, they buy the image, they buy the fashionable drink that exudes coolness.
AVERAGE CONSUMERS
These people are usually prone to purchase coke out of mindless habit. For them’’ drink’’ has been replaced by ’’coke ’’ itself.This segment of consumers have successfully been ’’brainwashed’’ to some extent by advertising campaigns and heavy promotions conducted by Coca-Cola. Again the age bracket is in the twenties, although teenagers tend to fall under this category
PEER PRESSURED CONSUMERS
This segment tends to be of the majority teenagers who purchase coke ’’ because their friends do it, ’’ or they do not want to appear daggy purchasing a fanta or sprite.They are less likely to request a fanta instead of a coke when purchasing a Happy Meal at MacDonalds for fear of dagginess.
COKE ADDICTS
This segment is usually the loyal coke followers who will have nothing other than coke, no substitutes, no imitations. They are accustomed to the taste, and believe it is the distinct flavour that keeps them buying coke consistently. On the other side, these consumers are addicted to the prizes and competitions Coca-Cola offer, resulting in their purchase of coke.
Promotion:
Coca-Cola is also getting their product advertised more frequently. Not only through their own advertising but also through sponsorships and other organisations. Coca Cola appear in McDonald’s ads when advertising for McValue meals, Coca-Cola appear on side boards of basketball arenas, football fields etc and Coca Cola logos appear when these organisations announce their sponsors. All this is to put the Coca-Cola name in front, to be a household product and to show goodwill.
However, the demand for Coke does change depending on the type and amount of advertising and promotion at various times, conducted by Coca-Cola.
Coca-Cola uses various forms of advertising such as Network television, radio and print media, such as magazines, and also, a number of new commercials are introduced every year by the advertising agencies, therefore enabling the brand to achieve visibility and become well known to widest possible market and the most consumers. Within these different countries, the market consists of different buyers and users of Coke. Coca-Cola targets the product, Coke, at individuals and groups of all ages and demographics, with a variety of different advertising campaigns, formulated by extensive testing and research.
Distribution Network
There is no involvement of wholesalers in the distribution of products. It is more like an agent network. The companies have divided the country into various regions and established a franchisee in each region. The franchisees have their own bottling plants and manage all the day to day operations. However, of late, the soft drink companies have started setting up company owned bottling units/ have been acquiring some of its franchise bottles.
Advantages And Limitations Of Franchisee Network-
Advantages are-
· Reduced investment levels in manufacturing equipment:
If a company sources its products from franchisees, it does not require to set up its own manufacturing plant for the purpose. The company thus benefits from reduced investments in manufacturing facilities, inventories of raw materials and other functions required for the manufacturing of the components.
· Savings on management time:
As the components are outsourced, the company stands to gain by saving on the management time and cost. The role of the company gets restricted to establishing the systems and in quality control at the franchise locations. Over a period of time the systems implemented stabilise and hence the involvement of the company remains on at the strategic decisions level.
· Regular supply of components:
With the development of strong relations with the franchisees, the manufacturer can be assured of a regular supply of components as per the manufacturer’s specifications.
· Reduced interfacing and dealing with labor
The labor and union employees involved in the manufacturing are the responsibility of the franchisee. This is beneficial as it reduces the management time and involvement in solving their issues.
Limitations are-
· Large volumes
To set up an ancillary base, the company