How Coca-Cola Became a World Acknowledged Brand - Assignment Example

 HOW COCA-COLA BECAME A WORLD ACKNOWLEDGED BRAND Business is a comprehensive discipline that encompasses a myriad of products, services and technology (falling in the category of tangible as well as nontangible) to be sold. In existing times, where businesses in their struggle to sustain competitiveness face hindrances like tough global competition, an uncertain environment, cutback in personnel and resources, and an inconsistent world order; marketing is a strategy that is deployed by most. Marketing is a tool that businesses use to create value for their products to capture the attention of their audience, which in turn comprises of the potential buyers of their products. Marketing includes aspects like advertising, promotions, public relations, and sales. It is the phenomenon of creating revenue which includes bringing a new product or idea in to the market, and persuading public to buy or adopt it. The company in the beginning needs to extend enormous efforts to develop a good name and prestige within the public. It needs to ensure that when the public remembers its brand name/S, they think of the company in good words. Moreover, the efforts of a company do not end here. For once, a good reputation has been earned by the company, it has to be maintained. Therefore, at the onset of remaining acknowledged as a worthy brand, organizations encourage active participation in community programs and effective communication with their customers. The customers’ feedback assists organizations in gaining an idea of customers’ preferences, their affordability and their primary needs, so as the conclusive step; they can align themselves with all of them accordingly. The main core of the marketing plan encircles formulation of a viable marketing strategy based on the information obtained about the market methods. This information is then assembled and later, the creative team begins the journey of brainstorming for ideas that are best suited for voicing the strategy. There are several types of media that work as an instrument when it comes to advertising; these include the print media, visual media, and the fastest and the most used technology, the World Wide Web (WWW). Scotsman regards marketing to be contingent upon three Cs namely caring, comprehending, and consistency. He explains that a good marketing strategy includes caring about the customers’ values, understanding their necessities, as well as continued advertising. Caring, according to him, includes the ability to respect and care about target consumers' time. The consumers regard their time to be valid and generally avoid selling strategies that are cumbersome and hence, time consuming (Scotsman 2006). At the very same, Scotsman believes that gaining an understanding of the demands of prospective clients as well as getting an in-depth knowledge of their needs is essential. It also requires some qualitative as well as quantitative research. (Scotsman, 2006) Scotsman also emphasizes that a relevant marketing campaign centralizes on consistency. He says that despite the fact that marketing consistently is expensive, but in the long run, it is capable of yielding a greater return in profits. The management only needs to invest on marketing and exercise patience until their efforts bear the expected fruit. (Scotsman, 2006) There are two marketing strategies primarily; the push promotional strategy revolves around the different direct selling approaches deployed by the marketing team. Examples include decorative packaging, door-to-door selling, etc. On the contrary, pull strategy includes evoking motivation in the customers to seek out a particular brand’s product, for example offering sales discounts, mass media promotion, as well as making efforts to retain current customers and avoid threats like attrition. With the advent of Internet technology, new business models or sites such as business-to-business (B2B) and business-to-consumer (B2C), have emerged which require the employment of different marketing strategies and tools to attract and retain customers. Business owners, members of the management team and key decision-makers are the basic targets of the B2B Marketing approach. According to the Management Centre Europe's website, "B2B marketing is the process by which your company builds and maintains strong and profitable relationships with business customers - by creating value for current and potential customers and then by ensuring a fair price from them in return."   B2B companies cater to other organizations by offering products and services that directly benefit the company. Companies get benefitted by these services or products through the increase of efficiency, changes in their organization and profitability (sales and savings) of the company. Such products and services include software, office supplies, maintenance and consulting services.   The company in consideration is the Coca Cola Company which came about in 1886 as a powerful corporation and since then, has undergone a series of progressions which have uplifted it to being ranked as the seventieth largest company operating in the United States of America, according to Forbes 500. "Because of the scale and size of Coca-Cola, we have to have a culture that encourages us to share the learnings and failures, the good, the bad and the ugly," said Joe Tripodi, Coca-Cola's chief marketing and commercial officer. Thus, the statement by the marketing representative of the organization dictates the fact that company’s primary focus is on building a cooperative environment which operates ideally such that it tends to have an open outlook, is based on the concept of ‘caring and sharing’ amongst the employees as well as promotes healthy relations the employees and the management. Many analysts have attributed Coca-Cola’s overwhelming success to its flexibility and adaptability as per consumer preferences. Over time, and in its struggle to accommodation to the fluctuating customer demands, it has continually revised its branding strategies. Coca-Cola stressed on building recognition for its brand by offering value in exchange of price, introducing diversity to align with consumer preferences, as well as penetration on a global scale. Its success can be determined by the fact that despite catering to customers’ needs through provision of several different products, it has managed to sustain a strong brand image and identity. Coca-Cola adopts the individual brand strategy as Coca-Cola’s major products have their own brand names e.g. Fanta, Sprite, Coca Cola etc., although they are distinct brands and operate under the label of Coca-Cola. Also, Coca-Cola’s brand image encompasses the frequency of purchase which in turn is enhanced by persuasive and stirring advertising campaigns and marketing strategies. These strategies have the objective of expanding the customer base as well as retention of the existing customers through maintenance of their satisfaction levels. Local marketing strategy is centralized on addressing the diverse needs of the population based in a particular region. People are usually attracted by a product that match with best their culture, their lifestyle, and reflects on their personality. “Whether a student in the United States enjoying a refreshing Coca Cola, a woman in Italy taking a tea break, a child in Peru asking for a juices drink, or a couple in Korea buying bottled water after a run together, “Coca cola is there for you”.” (Coca-Cola Company, 2010) Coca-Cola is a gigantic corporation which does not only serve to provide coke to its customers but a wide range of products including mineral water, iced tea, fruit juices, lemon and other kinds of juice drinks. It has brought into utilization the differentiated marketing method as Coke now addresses to a series of assorted audiences. Diet coke satisfies the weight conscious, regular coke, sprite and Fanta cater to an average human, while coffee, iced tea is approached equally by the youth as well as people falling in the older age groups. Thus, each group of beverages tends to attend to a specific group of people. It is evident that Coca-Cola encounters tough competition from brands namely Pepsi, 7up, etc. This in turn necessitates the evolution of marketing strategies that ensure that it remains competitive and does not lose its ingenuity in its on search for value sustainment and eventual global domination in the beverage world. Therefore, Coca-Cola has spent dollars reaching to millions in establishing a good name and recognition in the global market. 'Coca-Cola' is the most recognized trademark; it is recognized by 94% of the world's population and the brand name is considered to be the most widely recognized word after "OK". (Ivester, 2000) Moreover, when an average American listens to the phrase ‘it’s the real thing’, he instantly thinks of coca cola. Coca Cola has introduced a multitude of tag lines suited for different regions of the world as per their population and in 2011; it went from ‘Life Begins Here’ in USA to the ‘Coke side of life’ in Japan to ‘open happiness’ in Australia to ‘Destapa la felicidad’ (it uncovers happiness) in Spain and ‘Burrrr’ in East Asian countries like India and Pakistan. (Coke Lore, 2011) “Coca-Cola's viral campaign, “The Happiness Machine” has become one of this year's most viewed videos on YouTube,” says Paul McClay, Director of Media and Strategy for award-winning marketing agency, Definition 6, while discussing the concept behind the most inspirational videos of 2010 (Business Review USA, Nov 2010) Coca Cola also utilizes below the line promotions such as organizing contests, giving coupons to eateries/recreational areas, and free samples. Moreover, Coca-Cola has addressed the economic influence generated on sales by maintaining a low price on the price of its products. While execution of the SWOT analysis, Coca Cola has realized that it is capable of exercising its influence in markets outside the world of soft drinks. This has been the idea behind the origination of Minute Maid Company which deals with the sale of fruit juices. This area is ideal for further exploitation in the future because of the health concerns which are slowly being raised. Coca Cola’s biggest competitor is none other than Pepsi Co. which is trying to cut in the lead. It is also threatened by the emergence of several generic soda products introduced under different brand names and are penetrating the market fast due to their low cost. This again reinforces the need for Coca-Cola to conduct strong advertising campaigns to prevent the corporation against attempts of ceding. It has also focused endeavors on community service programs such as raising funds for earthquake victims, voicing in favor of women empowerment, as well as pressing for consideration of steps towards prevention of environmental pollution. In other words, Coca-Cola is trying to wear off its image of being just a ‘Giant Corporation’ and trying to deploy that of being ‘a member of the global world’ instead, by helping in the provision of education, better health facilities, and a better standard of living to the deprived. It has also revised its packaging sizes along with the fluctuation in demands of its customers. It introduced 21/2 liters bottles in early 2001 in Mexico which contributed to 1.5 billion unit sales. While catering to the Asian audiences namely countries like China and India, its marketing strategy symbolizes celebration of family festivities with a drink. This led to the development of its strong hold in the Asian market in early twenty first century. The strategy immediately touches the hearts of audiences as it does not emphasize on the ‘me or myself’ factor but it talks about togetherness, or ‘US’. It has also been involved in advertising campaigns which were organized in educational institutes through sponsorship of their events. This is a good strategy to capture the attention of audiences pertaining to age group of 17-23, which also constitutes the company’s target market. What needs to be understood is that marketing is an art and it involves engaging the audience’s both heart and soul. An effective marketing strategy therefore needs to be centralized on techniques of innovation, should speak volumes of organizations’ concern for customers. This is also the idea behind the Coca-Cola’s concept of providing ‘quality that consumers trust’. The advertising should also be moving as well as contain an effective message to be narrated to the audience. Its ads have aimed to show Coca-Cola as a natural part of people's lives in nearly everything from family gatherings to youthful fun to a first date. The ads feature upbeat music that is played as themes of love between couples and members of a family are epitomized. At the very same, the strategy formulators should bear in mind a picture of the environment where they plan to execute their strategy, and ensure its consistency with the traditional values, beliefs and practices of that society. Coca cola successfully shapes its strategies to attend to the values of the region whose audiences it intends to procure the attention of. As marketing strategy need continual reviewing and revisiting with time, Coca-Cola ensures that it aligns the message within its advertisements to suit the needs and preferences of the people and give them the soothing feeling that the brand provides them just what they desire. Marketing is of significance not only for the large, powerful corporations like Coca-Cola that reign the market, but even the limited budget partnerships and other small-scale companies. It enables an organization to gain recognition amongst the public and create awareness about their offerings. As considered in the case of Coca-Cola, it would not have been as wanted as it is, had it not been for the advertising campaigns which are its foundation. Moreover, marketing also serves to clarify the doubts and misunderstandings that result after baseless scandals. Most importantly, the fact remains that where a substantive and attractive marketing strategy enables a company to sell products which might not be very promising in terms of their quality and reliability, a poor marketing strategy disables the company from persuading buyers to get hold of even their most versatile, unique and lasting goods. References: Vosler, Sheryl. (2011) “The 3Cs of Marketing.” Scotsman Guide's Residential Edition (2006). (1995-2011).”The Principles of Marketing.” The Times 100 & Wilson and Wilson Publishing Ltd. McDonough, Ashley. (2010). “Push versus Pull Marketing”. Heid, Bill. (26 March, 2011). “Push-Pull Marketing: A Win-Win Combination For Your Small Business.” Friedman, Ted. The World of the World of Coca-Cola. Communication Research, Vol. 19 No 5, October 1992, pp. 642-662 Zivic, Louis. (1998). Management. Primus publishing. Coke Lore. Available through: The Coca-Cola Company Solomon, Michael R. (2003). Conquering Consumer space: Marketing strategies for a branded world. Pp. 125-140. New York, NY: Amacom Publishing. Rogers, Stuart. C. (2001). Marketing Strategies, tactics and techniques, pp.110-115. London, UK: Quorum Books. Doyle, Peter. (2002). Value based marketing. New York, NY: John Wiley and Sons Ltd. Read More