Coca-Cola strategies to make the company a leading brand
People over 200 countries drink 1.9 billion servings every day, according to coca cola company. Having a product people enjoy this far in beyond from what the company ever needed. There is 7 main marketing strategies, which made it as recognizable everywhere. Coca Cola uses various stategies in order to gain its market share.
Unique , Market tested formula.
The original formula is still lock in a special vault in Atlanta. Serving as a confederate colonel in civil war, J. Pemberton wanted to develop a new version of the coca wines, that were very valued in that time. As the law later passed on to force the beverage manufacturers to produce nonalcoholic type of their drinks. Later on in 1903 Cocaine was removed from coke. The main recipe has widely remained unchanged. This step helped the company maintain.
Logo uses a timeless font.
Pemberton's bookkeeper, F.M Robinson, decided that the logo of coca cola should be written in spencerian script, because it would differentiate it from the competitors. It's now valued as a logo that has had more 5yan 100 years to become imprinted in the minds of the whole nation across the world.
Distributed in a proprietary bottle.
Griggs Chandler was the majority shareholder of coca cola in 1888. He set his goal on making cola the nation's most popular through marketing and promoting with regional bottlers. By the year of 1915, chandler was going down in market share to vast number of competitors. Later he launched a national contest to design a new bottle to make the consumers know that coke was a premium product that can't me compared to any other brown cola. Later the iconic glass coca cola was invented inspired by cocoa. Even after the plastic replaced the glass, the company still continued to promote the image of cola bottle to be iconic.
Held retailers responsible for maintaining its high standard.
The Coke team decided that its drink should be served at 36 degrees, and would send salesmen to new retailers to tell them the product should never be served above 40 degree. The technique may seem a bit odd today, but the 36-degree standard was just another example of establishing Coca-Cola as a premium product that was worthy of more attention than any of its opponents.
Consumer price fixed for 70 years straight.
It's common today for technology startups to begin by offering a service for free and then charging a higher price to consumers and/or advertisers once they've become addicted. Before utilizing networking effects became a standard practice, Coca-Cola used a similar tactic to scale across the US and then throughout the world. From 1886 to 1959, a bottle of Coca-Cola cost just five cents.
Guided word of mouth advertising and developed a voice.
After Candler took over early in the company's life that Coke was as much a drink as it was a productive brand, an idea consumers could feel good about knowing with. Candler started a vast coupon initiative that resulted in 10% of all products from 1887 to 1920 to be given away in order to build brand awareness. He also provided retailers with Coca-Cola vibe like posters and more for decorations and calendars and clocks for customers. According to some people, Coke was a pioneer in attaching a brand to items unrelated to the product. And finally, all national, and then global, advertising contained variations of "Drink Coca-Cola/Delicious and refreshing" and fit into a standardized design slogan style.
Adopted a franchise model.
The drink was sold as a syrup that retailers would mix with soda water, but it wasn't just any typical to drink cola on the go. Candler decided to hand over the bottling rights for just a buck, which he never collected, because he was concerned with maintaining the rights. This marked the beginning of what the company internally calls The Coca-Cola System, a franchise partnership with bottlers that allowed the brand to truly start. And this pattern helps it scale new products, new communications, new equipment, and many more.
1. FOCUSED ON DRIVING REVENUE AND PROFIT GROWTH
Coca cola used segmented revenue growth as their strategies across their business in a way that varied by the market type. And also they aligned our employee incentives accordingly. In the ascending markets, they focus primarily on increasing volume, keeping our beverages affordable and strengthening the foundation of their future success. In developing markets, they strike a balance between volume and pricing. In developed markets, they relied more on the price or mix and on improving profitability by offering more small packages and more premium packages like glass. Creating values for their company and customers looks different in various countries, and they did a bright job segmenting their markets to drive revenue growth back in 2015.
2. INVESTED IN OUR BRANDS AND BUSINESS
They increased spending on social media advertising by more than just $250 million, and they used the funds to share stronger, and more impactful ads. The also invested across their expensive beverage background. They improved their position in the energy category with a strong strategic new partnership with monster beverage corporation. They also invested in more than one beverage companies. In 2015, they developed their first global marketing campaign to support the entire coca - cola trademark of coke, diet coke, etc. launched in early 2016, “ taste the feeling” represents refreshment, taste, uplift and personal connections that are all enjoying an iced Coca-Cola.
3. BECAME MORE EFFICIENT
As they took steps to rebuild our growth momentum, they knew they needed to invest in more and better marketing while also increasing their financial flexibility. To these extent, they increased our efficiency and productivity while reducing costs. Part of the solution was “zero based work” which is a way of looking at their business that starts from the assumption that organizational budgets start at zero and must be justified annually, not simply carried over at levels established in the past. Overall, they were able to realize more than $600 million in productivity improvement in 2015, which they used to invest further in our brands and business and also to return to their shareowner.
4. WE SIMPLIFIED OUR COMPANY
Few industries have changed rapidly over the few years than any non-alcoholic beverage industry. Evolving customer tastes and preferences, have created an environment in which speed, precision and empowered employees determine who wins in the market place. To seize this opportunity, they took steps to reshape our business. They looked hard at our operating structure and identified areas where we could be faster, smarter and more efficient. They removed a layer of functional management and connected their regional business units directly to headquarters. They streamlined a number of important internal processes and removed obstacles and barriers that inhibited them from being as effective and responsive.
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