Coke Cola Report based on Pakistan
Contents
Acknowledgement
I
am thankful to Mighty ALLAH, for providing me with all the strength
and courage to complete this case study report successfully within
the given time frame.
I
am also grateful to my respectable teacher, who helped me throughout in this course, who guided me in
this case study and special thanks that he teaches me the ethical
aspects for my professional life during this semester.
INTRODUCTION OF CASE
Coke
started his career from the Atlanta pharmacy where the coke sell a
glass at 5 cents and then they register his trademark in the USA in
1893, and after 2 year they establish their syrup plant in 3
different cities Chicago Dalls and Los Angles.
This
was the initial stage in the world of beverages, after that the
Coke introduce their brand in global with the help of their creative
logos for their recognition. They tried to create the best image in
the minds of consumer and cemented their image as a “All American
beverages” with the help of amazing , colorful advertising and
promotion strategy throughout the world .
After
that in 1920 they moves towards the restricted markets. Such as
China, Soviet Union and many other markets. Actually they were trying
to realize the final user that it is not the imported brand it is a
local brand it is your own brand.
In
1988 Coke successfully recognized as a best brand all over the
world. Coke introduces the different marketing programs for the
global market. The Coke often change the flavor, packaging, price and
advertisement according to the tradition and culture of the markets
for the position in the front of local brand to compete the taste. In
their advertising the Coke higher the different celebrities specially
atheist which are the stars of the local customer like that mean
Joe in the united state and MERADONA in the in the USA for the
admiration of younger’s.
Through
this strategy they got a +ve increase in their sales, they hired the
local manager and given them responsibility of sales and distribution
programs according to the consumer behavior of their areas.
Coke
keeps the one thing unchanged throughout the global arena that they
used the same packaging in the global only use the different
languages in different countries due to their law because they want
to positioned their products against the competitors and realize the
brand of coke as a local brand in the minds of consumer. For Example
in Australia they use the Australia fashion or tradition for the
promotion of their products. Actually aim behind this was to change
the perception of the younger generation, who think that the coke is
an imported brand so they develop their promotions according to the
culture.
FROM TO (History)
Coke
started from the sell in pharmacy per glass at 5 cents. The coke has
a memorable history behind their success, how they become the best
drink from the pharmacy till to the Global market.
They
introducing there strategic sales plan, advertising, segmentation,
targeting quality production to bcome the market leader, but in this
case study the main role behid the success of Coke is advertising and
promotions of the Coke all over the world, and how they introduce
there selves through the advertising by adopting the local
environment or by promoting the local tradition with the help of
advertising and promotions they never only introduce themselves in
those markets where the beverages are sold they also inter in the
restricted markets where the tradition of beverages are very low.
History
The
brand Coca Cola was registered as a trademark on 1893. The drink soon
become a National phenomenon by 1895, the company had established
syrup plants in Chicago Dallas and Los Angles.
In
the 1920, Coke followed aggressive global branding, finding such
creative placements for its logo as a dogsleds in Canada and on the
walls of bull fighting arenas in Spain. Its popularity and
attractiveness throughout the world was fuelled by colorful and
credible advertising that concrete its image as the All-American
beverage.
Coke’s
early moves into formerly restricted market such as china in 1978 and
the Soviet Union in 1979 and by 1988, Coke was voted most admired
brand in the world.
The
best step was that Coke did not institute a uniform marketing program
in each of its global markets. The company often tailored the flavor,
packaging, price and advertising to match tastes in specific markets.
The most constantly standardized element of Coke is its product
appearance. The company simulates gap stresses that the brand be
relevant and well-positioned against the competition. Coke used
different advertising agencies in different countries in order to
make the brand feel local.
Over
time this yields an advantage with younger generations who don’t
even think of coke as an imported brand. An example that Coke
recounts is of a Japanese family visiting the United States for the
first time. The young son, upon passing a vending machine, joyfully
exclaimed to his parents, “Look, they have coke here tool”.
The
market leader in the world “Coke” conducts business with more
than 400 brands in over 200 countries. More than 70 percent of Coke
revenues come from outside the United States, a fact that inspired
Douglas Daft, when he took over as chairman and CEO in 2000, to
express his desire for Coke managers to adopt a new mantra. “Think
Local. Act local “.
The
results of this hyper-local focus were missed sales targets and local
advertising that, in some cases, did not fit with the carefully
crafted coke image. Local marketers actually requested more help from
coke headquarters in Atlanta, so in 2002 coke formed a 100 – person
team there that became the center peace of the global marketing
group, setting strategy , hiring agencies, developing talent, and
sharing best practices among the local managers. Stephen Jones, coke
then-chief marketing officer, was careful to point out that the moves
did not signal that headquarters would dictate all the marketing
officer, was careful to point out that the moves did not signal that
headquarters would dictate all the marketing programs and activities,
instead noting that “the local markets are still accountable, but
now they have guidance, process, and strategy”. With this new
hybrid strategy in place, Coke increased its spending on major global
ad campaigns in 2004 while simultaneously “boosting collaborations
between regions to balance global and local efforts.
SWOT ANALYSIS
Strengths:
- Coke is enjoyed brand loyalty and high level of passion for products.
- Coke is enjoying competitive position vis-Ã -vis competitors.
- Coke is maintaining good company relationships with suppliers.
- Coke relationships with collecting bargaining agent are based on mutual understanding.
- Coke is financially strong and sound.
- Coke production process including operations management, Processes are at power with high standards and with high tech, prevailing in industry.
Weaknesses:
- The apparel industry is facing fierce competition in the competitive arena.
- Customers have become savvy and they always seek value in their transactions.
- Coke needs improvement in defining the mission, vision and in formulating corporate strategies to their internal customers.
- Marketing management needs improvements.
- HRM Needs Improvement.
Opportunities:
- The economic condition of USA is moderately good.
- Coke is internalizing social shift on moderate level.
- The Coke is equipped to implement the laws & legislations concerning the industry.
- Government policies related to beverages industry apparently seems consistent and coincide.
- The industry is enjoying consistent policies related to apparel industry.
- Coke has Global presence and is globally admired and they are having 48% make share still 525 is open.
- International environment debits favored business situation for Coke, specially in Asia.
Threats:
- The Consumer of USA become more demanding and more value seeking, their market experiencing social shift related to beverage industry.
- Managing Coke brand in the global arena seems difficult and facing challenges.
- A big challenge for the USA is from the laws & legislations related to the industry.
Branding Strategy Objectives:
- Meet customer’s expectation.
- Maintain the brand image in the global by maintaining the 4ps.
- To Increase the product width of the Coke, a thing that people desire for.
- Make the effect advertisement.
- More depth in the segmentation required according to the market to market.
- To make the customer to feel the Coke as a local brand.
Branding Strategies:
Brand Salience:
- Coke must have to to go forward for a more interactive and non-traditional promotions along with the traditional media advertising, to create maximum breadth and depth of brand awareness in consumers’ mind.
- These may include:
- Promotions on Social Networks like Facebook, twitter, youtube etc
- Sports and event sponsorships like Addidas.
- Celebrity endorsement as Nike did.
- Different advertising like buildings Door to door and Mobile Marketing.
- Advertising on Electronic Media.
- Advertising in several Retail stores.
Brand Performance:
Coke have a
history of producing the world No. 1 products, so it is already in
consumers’ mind that Coke beverages are of worth buying. To further
maintain and boost this image, coke have to do the following:
- Make their packaging a unique.
- Introduce new flavors.
- Use the raw material which matches coke tradition quality beverages.
- Price should be reasonable and affordable.
- The product quality and other attributes should be same all over the world.
Brand Imagery:
- Consumers develop different brand images based on brand knowledge and also on demographic and psychographic factors.
- Coke have to create more positive and favorable brand image, so that consumer perceives it as the only producer which can meet and satisfy their requirements.
- Coke have to focus more on young generation and also to the old age people, by communicating a taste with comfort, as offerings of new coke product category.
Brand Judgment:
- Coke has to maintain its brand image and performance so that customers can judge Coke as of best quality drink, unique and better than others and consider buying these beverages.
Brand Feelings:
- Coke should design such advertising campaigns which create a feeling of calmness, amused, energized, comfort, sociable, and pride for customers by drinking beverages.
Brand Resonance:
- By achieving these entire steps customer develop an intense and active bond with the brand, results in a brand loyalty. This can be measured by noticing the following attributes:
- Repeat Purchases.
- Customers’ loyalty.
- An affiliation to the brand community.
- Level of customers’ willingness to invest time, energy, money etc in brand.
Point of Difference:
Coke can create
a significant difference to its product by offering fully quality
beverages and other products, offered to its customers on several
stores, making it unique and more favorable, related to industry.
Point of Parity:
- Coke is sound financially they can create a category of its new products, as fully according to the needs and wants of the consumer of their market, which also acts as a competitive point of parity, and negates competitor’s point of difference, resulting in the development of a strong brand.
Recommendations to Management:
After
reading this case study, it is recommended to the management of Coke
that:
- Coke should enter strongly in those markets where they are not market leaders like Asia, world largest market (Population wise).
- More Segmentation of its brand is required.
- Coke should participate in social activities as well, as they did Coke studio in Pakistan.
- Use the quality and promotions more for its brands to attract more customers.
- The coke should create the image in the minds of the consumer that it is their own brand and local brand.
- Coke should focus on each segment, which have a high potential, and can generate great revenue for the company.
References:
Brand
management by Kevin lane Keller
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