How Coca Cola Can Further Increase Their Customer Base - Case Study Example

How Coca Cola Can Further Increase Their Base In Reference To Marketing Strategies Introduction This paper illustrates how Coca-Cola’s international strategies and tactics work in harmony. Strategy and organizational effectiveness are essential to the success of any organization, but they are both very different. In order to understand how Coca Cola can further increase their customer base in reference to marketing strategies, many factors centered on the customers have always been given the first priority throughout its existence. In an overview of the Coca Cola Company, when it comes to manufacturing, marketing and distribution of non-alcoholic beverages, then Coca-Cola Company is the global leader, with operations in over 200 countries worldwide, the headquarter being in Atlanta, Georgia. The company has a subsidiary employee basis of 30,000 people globally. 70% of its sales volume and 80% of the company profits are from outside (Adcock 23). First, we need to commend how the company has handled its branding. Looking briefly at branding since it is the focal of customer base sentiments, it is an effort to tie together, produce and have authority and control of the relevant associations so that the business performs better. Coca-cola has enormously benefited since they have successfully managed to create a brand which presents the company as being highly distinctive, very exciting and absolutely reliable with superb adverts. Even though its impossible to have full influence over a brand due to outside influences, wise use of design, advertising, marketing, service proposition and corporate culture among others can all really help in generating associations in people’s minds that benefit the company as an organization. The audiences, competitors, delivery and service aspects of branding may differ in different industry sectors but the main principle of being transparent about what you stand for always applies (Dev & Don 12). There are many ways in which Coca Cola can further increase their customer base in reference to marketing strategies and exploration of the whole concept pertaining to customers is critical. There are three ways to increase customer base: 1. Reaching out to existing customers on a regular basis while looking for referrals. 2. Reaching out to previous customers so as to offer add-on services 3. Seeking out new customers through use of the internet and aggressive advertising. Another crucial thing is to clarifying the offer you are making to customers and one should: Clearly show the uniqueness of the product, and this is determined by its presentation. Fully understand what it is that Coca-cola is offering their customers from their point of view. Know the customer base, their needs, preferences and behaviors. Understanding your competitors like Pepsi offer the same product. Have a good understanding of what differentiates Coca-cola beverages from similar products. Emphasize this difference while marketing and ensure that the business systems in place support it. Find out ways to go about so as to exceed customer’ expectations of the coca-cola products Options This has been done through product offerings – new packaging designs, an array of choices in flavors, thrilling and captivating advertisements. Coca-cola is well known in promotions especially during festive seasons like Christmas, Easter, and major sporting events like the football world cup. Coca-cola has got excellent distribution mechanisms in place, whether home delivery or retail units. To get started on how to increase customer base in reference to marketing strategies, market research should be undertaken. This is to know what Coca-cola offers –both tangible and intangible elements. Finding out the main upcoming competitors by looking in places such as retail outlet shelves especially major supermarkets is also important. There is also need to know your customers; this is by doing a profile of your typical customers. Tips Since it is known that people typically tend to have an advertising memory of three months, it is important to minimize lag times. There should be maintenance of regular promotions and advertising. The more the information obtained regarding your customers, the better it will be in directing successful promotions to your customers. Invest in computers and run a database on your customers – this provides great opportunities to learn more about them. Another great move which coca-cola is fully incorporating is increasing market share and reinforcing the existing customer base. In challenging economic conditions, Coca-cola has managed to prove that tough times can indeed be good times for smart businesses. It is possible to maintain your customer base and even increase it therefore coming out on the other side of ‘tough times’ in a much better position than you may be in now, and certainly better than your competitors who may take the ‘retreat’ option.” The key is never to invest less on marketing but just invest smarter. You need to keep your customers on toes, informed, reminded and proud to be associated with you. There should never be a time to cut marketing –but time to cut yourself a bigger slice of the pie, since the pie itself isn’t getting any bigger (Kerin 25). It has been proven that companies which maintain their marketing during a recession increase their market share more than during good economic times. Recession is an opportunity to grow by taking customers from your competitors. Without increasing the amount spent on marketing, there can be an improvement in the yield and effectiveness of the existing marketing by focusing in the areas of known (marketing) productivity. It is even better since your more panic-stricken competitors are most likely to cut their budgets, therefore reaping the benefits of your marketing since it was being promoted in a less competitive arena. This is making coca-cola to have a stronger negotiating position when dealing with media industry whether print or electronic since they will be keener than ever to win your business. To increase customer base, also one need to get close to their customers especially during tough times, since this is when they are more likely to delay purchases, trade down to cheaper products, or simply buy less. It’s important to have in mind that most of your customers are also feeling the pinch, therefore offer the customers rewards while making it viewed as being prepared specially for them based on the ‘past relationship’ and their loyalty (Kotler & Keller 28). Conclusion Finally, it is essential that Coca-cola maintains adhering to the four components of a superior competitive positioning. These are competitive frames of reference which look into nature of competition and the target market, developing unique brand points-of-difference (POD’s) which should be desirable to consumer, deliverable by the brand and most importantly differentiation from competitors. Coca-cola has established shared brand points-of-parity (POP’s) which negate competitor points-of-difference while demonstrating category credentials. There are also brand mantras which should be short with about 3-to-5 word phrases capturing key POD’s and the indisputable spirit of the brand. Every nation around the world which is Coca-colas customer already knows its brand slogan, “Coke Side of Life.” Works Cited Adcock, Al Halborg, & Caroline Ross. "Introduction." Marketing: principles and practice 2.4 (2001): 23-34. Dev, Chekitan, & Don Schultz. "In the Mix: A Customer-Focused Approach Can Bring the Current Marketing Mix into the 21st Century." Marketing Management 14.1 (2001). Kerin, Roger. Marketing: The Core. London: McGaw-Hill, 2012. Print. Kotler, Philip, & Keller Kevin. Marketing Management 14e. London: Pearson Education Limited, 2012. Print. Read More