Marketing Mix of Coca Cola: Product, Place, Price and Promotion
Coca Cola is one of the two leading brands in the soda industry. The international empire of Coca Cola spans more than 200 countries. The company has a large product portfolio of sparkling and still beverages. The soda industry has felt the pinch of economic slow-down and post-recession, currency fluctuations have affected the profits of leading soda brands. The popularity of soda drinks has also reduced due to growing popularity of health drinks and other health trends. Apart from the large market share, Coca Cola is known for its strong brand image and high customer loyalty. It invests a very large sum each year in marketing and advertising for promotions and customer engagement. In recent years, it has focused on optimizing its product mix. Read the marketing mix of Coca Cola and its four P’s – product, place, price and promotion.
Coca Cola has a large product portfolio of 500 sparkling and still brands. It provides nearly 3,900 beverage choices. Its leading product Coca Cola is one of the world’s most recognised and valuable brands. There are 21 billion dollar brands in its portfolio, of which 19 are available in low or no calorie choices.
Here are some of the most known brands in Coca Cola’s portfolio:
- Coca-Cola – Most popular and highest selling soft drink in history and also one of the most recognisable brands in the world.
- Sprite: A popular lemon lime flavoured soft drink introduced in 1961.
- Fanta: Second oldest brand from Coca Cola, introduced in 1940, comes in orange flavor.
- Diet Coke: Known as Coca Cola light in many markets. A sugar and calorie free soft drink. Introduced in 1982.
- Coca Cola Zero: Launched in 2005, this zero sugar brand acquired the status of a million dollar brand in 2007.
- Coca Cola life: Low calorie drink with cane sugar and Stevia leaf extract.
- Minute Maid: A juice brand acquired by Coca Cola in 1960.
- Ciel: Purified non-carbonated bottled water introduced in 1996.
- Powerade: Drink for energy and hydration made with carbohydrates, electrolytes and fluids.
- Powerade zero: Sports and fitness drink with electrolytes minus the calories.
- Simply orange: Premium 100% orange juice available in six varieties.
- Fresca: Caffeine free soft drink with a unique citrus taste.
- Glaceau Vitaminwater: Nutrient enhanced water beverage available in 26 countries.
- Dell Valle: A premium line of juices and nectars sold mainly in Latin America and Central America.
Coca Cola has an extensive beverage distribution system. Its products are sold in more than 200 countries across 6 operating regions including Europe, Latin America, North America, Pacific, Eurasia & Africa. Coca Cola sells an average of 1.9 billion servings each day. Traditionally, the company has relied on its bottling partners for the packaging and distribution of its products.
As Coca Cola notes, “While many view our Company as simply “Coca-Cola,” our system operates through multiple local channels. Our Company manufactures and sells concentrates, beverage bases and syrups to bottling operations, owns the brands and is responsible for consumer brand marketing initiatives. Our bottling partners manufacture, package, merchandise and distribute the final branded beverages to our customers and vending partners, who then sell our products to consumers” (Coca-Colacompany).
Its bottling partners work closely with customers including grocery stores, restaurants, street vendors, convenience stores, movie theatres and amusement parks, among many others. Together they execute localised strategies of Coca Cola company. These customers sell the coca cola products to the final customers.
Pepsi is the arch rival of Coca Cola and the closest competitor in the beverages segment. Both brands price their products competitively. Prices are not too high to go beyond the average customers’ reach and nor too low to give an impression of low quality. Coca Cola’s pricing strategy is aimed at driving brand loyalty. Moreover, due to the decreasing demand for the soda products, price competition between Coca Cola and Pepsi has gotten even intense. The prices grow lower with larger size of purchase. Bulk buyers of the product may have to pay significantly lower prices than ones buying single Coca Cola products.
Due to the intense competition in the soda industry the top brands spend much on advertising to drive higher sales and revenue. Coca Cola’s marketing expenditure in 2016 was $4 billion. In 2018, the marketing expenditure grew to $4.1 billion. It utilises both traditional and modern channels to promote its brand and products. Coca Cola launched its Taste the Feeling campaign in 2016 which unites all of its brands. This one brand approach taken by Coca Cola marks a significant shift from its previous marketing strategy. Apart from TV ads and outdoor ad campaigns, the company serves its ads across the internet and on the social media. Its social media accounts are used to connect with its fans and followers and for customer engagement. There are more than 1,250 promotional videos of Coca Cola on its official YouTube channel.
- http://www.coca-colacompany.com/stories/taste-the-feeling-launch 4.http://www.businessrevieweurope.eu/marketing/856/Top-20-companies-with-the-biggest-advertising-budget