They have implemented product development by offering and acquiring new products for distribution in existing markets. The disastrous release of New Coke is an example of this. They have also implemented diversification by releasing new products in new market areas, as attested to by the video which stated that Coca Cola has over 500 brands worldwide, with only 70 in the US. The penetration model is probably the one most commonly used by Coca Cola. In their constant battle with Pepsi over market share, Coca Cola puts a lot of emphasis on brand recognition in and attempt to increase the sales of existing products in existing markets.
Introduction The Coca-Cola Company is one of the largest beverage selling companies in the world. To reach this highest position coca cola uses various marketing techniques and business strategies. It is a leading beverage company and has almost 500 different brands. The very popular soft drinks are such as, sprite, Fanta, Minute Maid and many more in this list. The product originally originated in Atlanta, Georgia, in 1886.
The Coca-Cola commercial ‘Brotherly Love’ has does a wonderful job to induce consumers by using the emotional story that is relatable to many audiences’ lives. The use of ‘Coca-Cola’ brand name minimizes the need for huge marketing initiatives for its new product- Coca –Cola Zero, as the consumers already have the understanding of reliability and quality of the older product. The design used in the Packaging and presenting communicates its brand, its contain and the benefits very well. The colors used in the commercial conveys lot about its giant competitor Pepsi, revealing its loyalty and superiority over Pepsi. Through this Ad, Coca-Cola provides enough reasons to buy their products rathe r than going to their rivals.
1.2. Product Differentiation This refers to differentiation that aspires to make a product more attractive by contrasting its unique qualities with other competing products (Investopedia, 2015:1), as in the case of Coca-Cola, other soft drink brands. Successfully adopting this strategy would have a company gaining a competitive advantage, as the customer would then view the product as unique or superior. This is what coca cola has managed to do, and has managed to do it on a scale that is globally unique, and globally recognized. Much proof would indicate that Coca-Cola has definitely chosen a differentiation strategy since its early days.
Market segments help the company to improve their products and services, knowing needs of their customers and innovate new sectors. Coca-cola distribute their business in few operating segments which are Eurasia and Africa, Europe, Latin America, North America, Asia Pacific, Bottling Investments and Corpora. They markets the products selling into different market, such as Diet coke and Coke Zero. Coca-Cola uses the consumer segmentation criteria and market into different groups of behavioural, psychographic and profile. Coca-Cola creates value to its brands and with good performance to convince people to buy their products.
Besides its namesake Coca-Cola beverage, Coca-Cola currently offers nearly 400 brands in over 200 countries or territories and serves 1.6 billion servings each day. . The company operates a franchised distribution system dating from 1889 where The Coca-Cola Company only produces syrup concentrate which is then sold to various bottlers throughout the world who hold an exclusive territory. The Coca-Cola Company is headquarter Coca-Cola has sold more than one billion servings every day. Promotion is something to excel the marketing activities which
PepsiCo is aware of the differences in culture worldwide. Keeping in mind of the countries that have religious festivals, Pepsi uses this opportunity to the fullest for advertising campaigns in accordance to the respective festivals. For example, Holi Festival in India, PepsiCo uses this as an chance to increase sales. Besides that, solid waste management programs affects the operations at PepsiCo. PepsiCo has to be more socially responsible in order to maintain it’s
CCBPI is among the ten biggest Coca-Cola bottlers globally and one of the top 100 Philippine corporations. CCBPI operates 23 plants and 42 sales offices with over 7,800 direct employees offers the widest selection of beverages for different needs like soft drinks, water, juices, teas, sports and energy drinks. ” Pepsico
HISTORY & BACKGROUND OF COCA COLA The Coca Cola company is known as one of the world’s largest carbonated soft drinks company that began before World War II. It is an American-based company found in 1886 by an Atlanta pharmacist. Dr. John S. Pemberton created the formula of French Wine Coca, which is known as Coca Cola now and introduced the carbonated soft drink as a patent medicine at first. The beverage became more noticeable when Frank M. Robison, Dr. Pemberton’s partner changed the product name and created the famous script logo, which he believed that will attract customer in advertising.The marketing phenomenon grew even bigger when the small company was bought over by Asa Griggs Candler prior of the founder’s death in 1888. Candler 's decision was what made the Coca Cola Company so successful today due to his interest and aggressiveness in marketing this product.
Later on Pepsi introduced the Pepsi Challenge where the consumers were blinded to taste between Coca-Cola and Pepsi and everyone seems to prefer the taste of Pepsi to Coca-Cola. Since, the market share of Pepsi was increasing fast, Coca-Cola decided to come out with something new. After taking into considerations that the taste was the key factor that led to the success of Pepsi. Therefore, in 1985 Coca-Cola introduced a new product called New Coke replacing the old Coke. After the introduction of New Coke, people started going against the New Coke as many felt that Coca-Cola was considered part of their lives and felt that something was taken away from them.