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MM Project On The Marketing Strategy of Coca Cola (Epgp-11-026)

This document provides an analysis of the situation for Coca-Cola, including factors affecting demand and supply of its products and its marketing strategies in different markets. It discusses how the demand for Coca-Cola is affected by price, substitute goods, income, and other factors. Supply is affected by price, technology, and input costs. Coca-Cola's marketing has varied by developed, developing, and underdeveloped markets, utilizing different strategies around pricing, branding, and product diversification to target each region.

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0% found this document useful (0 votes)
277 views13 pages

MM Project On The Marketing Strategy of Coca Cola (Epgp-11-026)

This document provides an analysis of the situation for Coca-Cola, including factors affecting demand and supply of its products and its marketing strategies in different markets. It discusses how the demand for Coca-Cola is affected by price, substitute goods, income, and other factors. Supply is affected by price, technology, and input costs. Coca-Cola's marketing has varied by developed, developing, and underdeveloped markets, utilizing different strategies around pricing, branding, and product diversification to target each region.

Uploaded by

Biswajit Prusty
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1)Table I: Situation Analysis

Analysis of:

1)Price of the 1) If the price of Coca-cola will increase, other things remaining
product constant, the demand of customers will decrease and vice-
versa. If the price of Coca-cola will increase, the producers will
Company 2) State of be willing to produce more quantity of it and vice-versa.
technology 2) With improvement in technology, the cost of production of
coca-cola can be reduced and thus suppliers would like to
supply more of it at the same price.

If consumers expect a rise in price of Coca-cola in short run, they will


demand more of it before the rise so that they can store it. Similarly, if
Consumer’s
the price of Coca-cola is expected to fall in short run, they will demand
Customers expectations
less of it in present. As Coca-cola is a normal good, its demand will
and income
increase if the income of the customer increases and price of Coca-cola
remaining constant.

Demand of Coca-cola is directly affected by the price of other aerated


Price of goods. If the price of Coca-cola rises drastically from Rs.12 to Rs.20,
Competition substitute goods price of other substitutes remaining constant, people will reduce their
demand for Coca-cola and their demand for other aerated drinks will
increase and vice-versa.

1. Coca Cola’s business is entirely dependent upon logistics and supply


Supply chain
chain. Transportation costs and fuel prices are always on the rise. Thus,
Collaborators system to be coming up with some advanced and improved systems for distribution
advanced can be an opportunity.

Demographic population of the country refers to the distribution of


Demographic
population in terms of age. If the population of the country is more of
Context/Macro population of middle-aged people, youth and kids then the demand for Coca-cola will
Environment the country increase and vice-versa.
LAW OF DEMAND: The inverse relationship between the price of the commodity and the quantity
demanded per time period is referred to as the ‘law of demand’.

FACTORS AFFECTING DEMAND OF COCA-COLA:

 Price of the product: If the price of Coca-cola will increase, other things remaining constant,
the demand of customers will decrease and vice-versa.
 Price of substitute goods: Demand of Coca-cola is directly affected by the price of other
aerated goods. If the price of Coca-cola rises drastically from Rs.12 to Rs.20, price of other
substitutes remaining constant, people will reduce their demand for Coca-cola and their demand
for other aerated drinks will increase and vice-versa.
 Income of customer: As Coca-cola is a normal good, it’s demand will increase with the
increase in the income of the customer and price of it remaining constant.
 Customer’s taste and preference: If customers have a very strong preference for Coca-cola,
their demand for it will remain unaffected even with a rise in the price of Coca-cola.
 Consumer’s expectations: If consumers expect a rise in price of Coca-cola in short run, they
will demand more of it before the rise so that they can store it and vice-versa.
 Demographic population of the country: Demographic population of the country refers to
the distribution of population in terms of age. If the population of the country is more of middle-
aged people, youth and kids then the demand for Coca-cola will increase and vice-versa.

LAW OF SUPPLY: When there is a rise in price of the commodity, quantity supplied increases and
when there is a fall in price, quantity supplied decreases. So there is a direct relation between the price
of the commodity and the quantity supplied.

FACTORS AFFECTING SUPPLY OF COCA-COLA:

 Price of Coca-cola: With an increase in the price of Coca-cola, the producers will be willing
to produce more of it and vice-versa.
 State of technology: With improvement in technology, the cost of production of coca-cola can
reduce and thus supplier would like to supply more of it at the same price.
 Number of customers: If the number of customers for coca-cola is large then the company
will supply more of it and vice-versa.
 Price of inputs: If the price of raw materials will reduce, the producers will produce more of it
and thus the supply will increase.

2)Brand history and previous years marketing plan

The Coca-Cola Company is an American corporation which was founded in 1892 , and is engaged
today primarily in the manufacture and sale of concentrate for Coca-Cola, a sweetened carbonated
beverage that is a a global symbol of American tastes. The company also produces and sells multiple
other soft drinks and beverages. Having more than 2,800 varieties of products available in more than
200 countries, Coca-Cola is the largest beverage manufacturer and distributor worldwide and one of
the largest corporations in the United States. Its headquarters are in Atlanta, Georgia.

The marketing strategy of Cocacola varied from country to country on the basis of the below
segmentation of all three types of markets viz. developed (USA), developing (India) and under-
developed (Africa).
1. Developed Markets (USA) Origin:- While Coca Cola dominates the emerging markets, it has
seen increased competition from domestic players, with global competitors such as Pepsi Co. also
looking to grow in these regions as well. With more and more people nowadays trying to be aware of
fitness and health problems, Coca Cola had to launch itself in products to substitute unhealthy
ingredients in drinks without affecting the taste of drinks Marketing strategy:- Coca-Cola began
distributing bottles as ‘Six-pack’, encouraging customers to purchase the beverage for their home.
Coca-Cola was introduced as a sponsor for the Olympics Games in 1928 which gave it even more
international exposure and started a tradition that continues till date. The U.S. entered World War II in
1941, and the demand for Coca-Cola from U.S. soldiers serving overseas increased magnificently. At
the beginning, the first bottles of Coca Cola was sold at a price 5 cent in the US. Low cost of the
product formed the key for the Coca Cola in US of his sell and promotion.
2. Developing Markets (India) Origin:– In 1956, Coca Cola launched itself in the Indian market and
made huge revenue operating under complete foreign equity.
Difficulty:- Coca-Cola is facing a slew of challenges in India. A debate over water usage, accusations
over pesticide content and sweeteners, as well as more general concerns in India over the un-
healthiness of fizzy drinks are plaguing the brand. Coca-Cola faced tough competition from PepsiCo
as well as other local brands.
Marketing strategy:– In order to establish a strong base, Coca Cola India took over Parle foods and
acquired local popular brands like Thums up, Limca, Maaza etc. The combination of global and local
brands enabled Coca Cola to exploit the benefits of being a global branding. Product diversification is
the key for coca cola in India. Inspite of an extremely price-sensitive consumer, Coca cola has
succedded with customers having entrenched beverage consumption habits – tea, nimbu-paani and a
fragmented and geographically dispersed retail market, and a high tax environment. Coca cola follows
intensive brand building programme. Coca cola tries to understand the Indian consumer, and uses the
local insights to build powerful connection for its brands. By virtue of its Affordability Strategy,
Coca-Cola experienced unprecedented growth rates (above 40 per cent) in 2002. It has continued to
grow in strong double digits since then. Coca-Cola India minimised its capital costa and needs by
meeting new manufacturing capacity needs through outsourcing its distribution external co-packers,
and meeting its inmarket-refrigeration and cooling needs by giving incentives through its “Own Your
Fridge Scheme”.
3)Under Developed Markets (Africa) Origin:–In 1928, Africa started importing Coca Cola and
bottling started in 1940. Africa accounts for 7% of the daily of The Coca Cola Company products
consumed worldwide, daily, which accounts to some 120 mn Coca Cola products served across the
African continent daily. The number increases daily with Africa’s exponential growth.
Difficulty:- The biggest difficulty faced by Coca Cola in any under developed market like Africa is
the low demand for a beverage product. Also, transportation of products at long distances becomes a
challenge since the facilities are limited.
Marketing strategy:– To overcome the first major challenge of the demand, the pricing has to be as
low as possible so that more public is attracted towards the products. Big corporations usually first try
to know their customers and their choices & preferences. Also, Coca Cola has tried to establish its
name in the better regions by the initiative of Coke Studio wherein new artists are given an
opportunity to present themselves. Today along with its 46 bottling partners, the Coca-Cola Company,
operates in all countries and territories in Africa and in each the business is a local enterprise.

3)Table II: Comparing marketing plan of the selected brand with competition
Elements of Selected Brand: COCA Competing Competing Brand 2: My
Marketing Plan COLA Brand 1: PEPSI RED BULL Comments
Brand performance Brand
Sales(2018-19):$31.9 Sales(2018-19):$64.7 Sales(2018-19):$6.5
and Position in the performance
billion billion billion
market of Coca cola
EPS(2018-19): $2.08 EPS(2018-19):$5.66 EPS(2018-19):$1.9
(Compare Sales, can improve
Growth in Coca Cola's Growth in PepsiCo's Growth in Redbull's
market share if practices
shares: shares: shares:
(category /segment), product
For 2018-19:15.75% For 2018-19:19.45% For 2018-19:7.70%
growth over years), diversificatio
For:2014-19:22.13% For:2014-19:49.20% For 2014-19:11.1%
profitability) n
21. Opportunities:
12. Opportunities:
22. 1)New
13. 1)Healthy Options:
environmental
Diet Pepsi is a positive
2. Opportunities: policies provide a
move towards that
3. 1)Introduction of new great opportunity for
direction.
products in health and Red Bull to drive
14. 2)Diversification: This
food segments. home its advantage in
can also be done by
4. 2)Increase presence in new technology.
acquisitions.
developing nations with 23. 2)Decreasing cost of
15. 3)CSR: They can do
hot climatic conditions. transportation can
more CSR activities
5. 3)Bring advanced supply toimprove the brand also bring down the
chain system as cost of Red Bull.
image of the
transportation costs and 24. 3)New trends in the
organisation and benefit
fuel prices are always on consumer behavior
the local people.
the rise. can provide a
16. 4)R&D: More focus is
6. 4)Packaged drinking opportunities to
required on the diet
Key opportunities water :There is a great diversify into new
drinks category.
and challenges for potential for expansion in product categories.
17. Challenges:
the brand this segment for Coca- 25. 4)Opening up of
18. 1)Competitors: PepsiC
Cola new markets
o’s main competitors are
7. Challenges: because of
Coca-Cola, Kraft foods.
8. 1)Water usage government
19. 2)Health Factor: The
controversy in water- agreement.
unhealthy factor
scarce regions. 26. Challenges:
associated with its
2)Packaging controversy products can take a toll 27. 1)Intense
in 2017 for its use of competition.
on the health conscious
single-use plastic bottles 28. 2)Imitation of the
customers and might
9. 3)Direct and indirect counterfeit and low
lose them.
competition: quality product.
20. 4)Government Norms:
10. Direct:Pepsi, 29.
Different norms of
11. Indirect:Starbucks Costa 30. 3)Changing
different countries might
Coffee, Tropicana, Lipton. consumer buying
prove difficult to handle.
behavior from
online channel.
PepsiCo Inc., aims to
double sales of In 2018, the total
Coca-Cola believes will Tropicana by 2020, the value of the
deliver to a new emerging flagship brand for its worldwide eSports
middle class between 800 fruit-based beverages. market
million and a billion new The focus on Tropicana reached $905 million.
customers by 2020, with comes as part of the Competitive gaming
60% of that new wealth company’s global isn’t showing signs of
coming from emerging strategy to focus on slowing down either,
markets. nutrition and healthier it has been estimated
Observation: There is an beverages as it failed to that eSports could Coca cola
increasingly sophisticated check falling sales of generate more than should target
global teen population that aerated drinks in the past $1.8 billion by 2020. to enter into
is crucial to Coca-Cola’s five years as consumers Gaming exists at the eateries
Business Strategy
fortunes. shift to healthier options. crossroads between business and
and Marketing
Large chunks of these new To achieve the target, all of the media types should focus
Objectives- 2019-20
audiences will be in PepsiCo is planning to the spend-happy more on
markets where Coca-Cola expand its retail reach by millennial consumers health
has the most potential for moving deep into engage with the most. conscious
growth. smaller markets, Red Bull has been products.
Currently, the average reposition the brand with making waves with a
number of Coca-Cola- the help of new passionate
manufactured soft drinks packaging and community of
consumed by each person campaigns and spending consumers cheering
per year is 89 globally, and double on television, a them on for a decade
it varies widely from medium which is more in the “blue ocean”
market to market. relevant for semi-urban market space of
and rural markets, in eSports.
2019-20.

Current Marketing Strategy


Age group with Age group with Coca cola has
Age group with preference
Target Segment(s) preference for Pepsi as preference for targeted its
for Coca cola as on 2018:
( share of brand in on 2018: Redbull as on 2018: customer
≤18 years: 50%
different targeted ≤18 years: 44% ≤18 years: 2% segment
19-34 years: 52%
consumer segments) 19-34 years: 38% 19-34 years: 4% quite well i.e,
≥ 35 years: 44%
≥ 35 years: 26% ≥ 35 years: 9% youth .
Recently,
Coca cola has
tried to relate
Live for Now;
its tagline
Something for
Open happiness; Life “own
Everyone; Every
Positioning Begins Here; Twist The happiness”
Generation Refreshes Wings
Statement Cap To Refreshment; The with
The World; Yeh dil
Coke Side of Life; Brrrr relationships
maange more
among
people,
which was a
good step.
Marketing Program

The products in the


Pepsi marketing mix
Coca Cola products are mostly carbonated The products are
are sold in multiple beverages besides produced differently
packaging and sizes. fruit juices, snacks into two Again, I would
etc. categories(with suggest Coca
Its logo sugar and sugarless) cola to explore
Product & brand Management differentiates itself The company has also
and available in eateries market
from Coke. ventured in the areas
different countries and health
of chips.
Unique shapes of and red bull is a conscious
bottles. The company has much more popular products
further ventured into energy drink
the products like worldwide.
Lipton tea and the
Tropicana juices.

Coca Cola relies on Red Bull targets


The promotion is also
aggressive sports people with
done targeting the Promotional
marketing through their tagline “Red
youth. strategies of
ad campaigns. Bull gives you
Coca cola are
The promotional wings.
Coca Cola engages one of the best
strategy of Pepsi in They also possess a
in major worldwide. Its
Promotions: promotion mix, the marketing mix Red Bull House of
sponsorship events. products have
spends uses all possible Art where artists are
penetrated in
Coca Cola has also media. encouraged to
rural areas of
launched TV display their art.
They promote in a various
advertisements in Red Bull also have
way which attracts the countries.
various national their own
people who are health
languages across the merchandise online
conscious.
globe. stores.

Pepsi and its products


Coca Cola has an
are available in over
extensive Red Bull is available
200 countries
distribution channel, at convenient
worldwide. Expansion of
with its products locations.
available in almost The distribution distribution
Also, Red Bull is channels of
every retail outlet strategy in Pepsi
Place: Channel share often stored in Red Coca cola is
and supermarket marketing mix is
Bull exclusive more than any
across the globe. relies on distributor
refrigerators of its
relationships along
An extensive attracting customers competitors.
with the extensive
reverse supply chain to buy an energy
network of retailers,
has also been drink when they go
grocery stores,
created by Coca shopping.
restaurants,
cola.
supermarkets etc.
Red bull’s pricing Its pricing
A 2nd degree price
Pepsi products are strategy is based on strategy offers
Pricing Strategy discrimination
priced on the basis of competitor pricing. multiple
(brand extension, variants and strategy is used by
the demand of the Customers prefer options for
pricing) Coca cola in its
customers. buying Red Bull in customers,
marketing mix.
bulk as its’ cheaper owing them to
Coca Cola offers The CSD are priced at than buying a single prefer Coca
discounts on bulk different rates depends can. cola.
purchases by on the competition
sometimes even and the customers
bundling the pocket.
products to
The marketing mix
encourage the
pricing strategy of
buyers.
Pepsi is mostly driven
by its most important
global competitor
Coca Cola and the
demand from
customers.

Coca cola
needs to
Growth potential of Growth potential of penetrate more
Coca cola is high. Redbull is high. into the
Growth potential of
Following efforts Following efforts underdeveloped
Pepsi is high.
are required for the are required for the countries and
Following efforts are
same: same: also into the
required for the same:
1.Increase its reach 1)Accelerating the rural areas of
1.Penetrating more
in untouched marketing and developing
into developing
countries and Coca sponsorships in countries with
countries and trying to
Cola can be emerging markets the diversified
capture their market
accepted by the can be a wise move. product range
2.Increase its product
Future prospects of the brand market. 2)New production – which can cater
portfolio through
(Growth potential- High, 2.Market and Red Bull’s new to their specific
acquisition of other
Medium, Low- Why?) popularise the less production facilities needs.
brands
&efforts required in attaining known products in emerging
3.To expand the
business objectives 3.Acquiring other countries are likely
eatery in untapped
companies can to make its retail
countries and regions
strengthen Coca price more
like tier 2 cities
Cola's place in the competitive.
4.By mproving its
industry further 3)Product line
brand image by
4.Entering into extension – Offering
getting involved in
snacks industry to new flavors and
more CSR activities to
compete with formats should help
benefit the locals
PepsiCo to diversify Red Bull to
its product portfolio. keep/improve its
market shares.
Product & brand Management
Coca cola:
Coca Cola products are sold in multiple packaging and sizes.For example, Coke is sold in 200ml,
500ml, 1ltr, 1.5ltr, 2ltr and 2.5 ltr cans, glass and plastic bottles. The Coca Cola logo is clearly made
visible on each of these bottles and cans to differentiate itself from Coke. The Coca Cola bottles also
possess unique shapes pertaining to the brand. Coca Cola, Fanta and Sprite and large market shares in
their respective segments but their growth is not encouraging. Hence they generate huge cash for the
company. Minute maid has high market share and good growth rate.
Pepsi:
Pepsi is the prime product of the company Pepsi Co.
Pepsi marketing mix consists of products which are mostly carbonated beverages, along with fruit
juices, snacks etc. The other soft drinks apart from Pepsi are 7up and Mountain Dew. Each of them
have different targeted customers. The company has also ventured in the areas of chips and wafers
like Lays, Cheetos and Kurkure which carter to the various sections of the people.
They have a variety of products like Diet Pepsi, 7Up Revive to name among a few. The company has
further ventured into the products like Lipton tea and the Tropicana juices. Pepsi Co are catering to a
wide variety of markets and are making their presence felt in almost all the kind of food and beverage
sectors.
Redbull:
Red Bull drink contained ingredients similar to that but a few more added to accommodate the
western taste and also became carbonated. The product mix of Red Bull can be elaborated as follows.
Red Bull energy drink contains taurine, caffeine, B vitamins, sucrose and glucose which are mostly
required by workaholics, sports people or even youths. As there is a usual trend that occurs in the
younger segment, they came up with a sugar free variant called Red Bull SugarFree which contains
aspartame and acesulfame K instead of sucrose and glucose. The two products are produced
differently and red bull is a very popular energy drink worldwide.

Promotions:
Coca cola:
Coca Cola sets the bench mark for advertising and branding. The promotional strategy of Coca Cola
relies on aggressive marketing through ad campaigns using media like TV, print media online ads,
sponsorships etc. Coca Cola engages in the following major sponsorship events like American Idol,
BET Network, NASCAR, NBA, NCAA, Olympic Games, FIFA world cup etc. Coca Cola has also
launched TV advertisements in various national languages throughout the globe. In India, in 2016,
Coca Cola launched “Taste the Feeling” campaign which reminded its customers about the joyous and
happy moments Coke brings to all their lives. The distributors and retailers are given special
incentives for pushing Coke products. Also these retailers are given refrigerators and Coca Cola
hoardings for advertising the brand. Special emphasis is given on the shelf spaces at the super markets
to generate more visibility of its products. Hence, all these above stated points give an overview on
Coca Cola marketing mix.
Pepsi:
Pepsi mainly targeted its food products for the youth and family. The branded CSD is targeted to the
youth. The promotion is also done in that format. They are promoted by famous movie stars or the
well-known faces so that people can easily corelate. The promotional strategy in the marketing mix of
Pepsi uses all media channels like TV, print, online ads etc for a 360 degree branding. Pepsi has
sponsored global events like world cups of cricket , football, etc across the globe apart from
sponsoring global lifestyle, music events. They also have a high and powerful promotion policy for all
the wafers or chips they have like Lays and Kurkure. Pepsi mainly targets the media to make their
presence felt in the market worldwide. Lipton is marketed to the higher end of the customer. The
Tropicana brand is also targeted to the fitness oriented people. The people who are also preferring the
healthy options of drinking also prefer this products. Thus they promote in a way which attracts the
people who are health conscious and the ones who are interested in having the healthy food. Pepsi has
also been involved with global brand ambassadors who are film stars, famous sports personalities etc.
This summarizes the Pepsi marketing mix.
Redbull:
Red Bull being an energy drink, mostly targets sports liking people with their tagline “Red Bull gives
you wings”. To owe to a huge customer base, they organize a lot of sports events and even sponsor
teams. Some of the sponsored events include mountain biking, motocross, windsurfing, BMX,
surfing, skating, Formula 1, Red Bull Foxhunt , Red Bull BC One, Red Bull Cape Fear , Red Bull
Battle Grounds, etc. They also endorse various sports celebrities and athletes. Besides sports, they
also possess a Red Bull House of Art where artists are encouraged to display their art in a period of 3
months at their exhibitions. They have Red Bull T.V available for laptops, PCs, mobiles and tablets
airing various music festivals, shows, performances, films, and videos. Red Bull also have
merchandise online stores and magazines for extreme sports persons. Through all these promotional
activities, they want customers to recognize their brand every time they see or hear energy drink, thus
increasing their customer base. Hence, the above points cover the marketing mix of Red Bull.

Place:
Coca cola:
The place strategy in Coca Cola marketing mix is highlighted by the wide distribution network. The
Coca Cola company ships its bottles to the carrying and forwarding agents. From there the bottles are
transported by road to the stockists, then to the distributors and finally to the retailers from where the
final consumers buy the products. Mostly, the distributor supplies the goods to the wholesalers, who
distributes them to the retails according to the demand on the regular basis. Coca Cola has an
extensive distribution channel, with its products are available in almost every retail outlet and
supermarket across the globe. In India Coca Cola products are made available across 2.5 million
outlets.Coca Cola products are also distributed to various Hotels and restaurant chains throughout the
world.Coke has also built an extensive reverse supply chain where they collect the leftover glass
bottles from the retailers and convert them into a reusable product thus saving cost and additional
resources.
Pepsi:
The places where Pepsi products are sold are mainly the areas where they find the targeted customers
are available. The CSD are available all over the places. The distribution strategy in Pepsi marketing
mix relies on distributor relationships and the extensive network of retailers, restaurants, grocery
stores, supermarkets etc spread globally. Same goes for the chips like lays and kurkure as they are
demanded by each kind of people and are a kind of substitute of the food they have. Tropicana are
available at selected outlets as they have a specific kind of customers. Lipton also gave a specific kind
of customer base thus they are available at selected outlets. These outlets are mainly the supermarkets
or the stores where the targeted customers are visiting the most.
This is selected based on the surveys conducted and a careful selection of the stores.
Redbull:
Red Bull had successfully sold 5.9 billion cans worldwide in 2015 because of its vast distribution
network worldwide. Red Bull is available at convenient locations like a convenience store,
supermarket, retail outlet or even night clubs. This way it becomes very easy for a customer to buy the
product. Also, Red Bull is often stored in Red Bull exclusive refrigerators which attract customers to
buy when they go grocery shopping or to a bar. Red Bull is also available online either in bulk packs
or single cans making it easier for customers to buy in bulk. The main motive of selling this drink at
night clubs and bars is either people prefer mixing it with another beverage to add some extra flavor
or sometimes it is just to help them stay up late and party with friends. At supermarkets and
convenience stores they are placed along with other competitive products giving the customer a
choice between which one to buy.

Pricing Strategy:
Coca cola:
A 2nd degree price discrimination strategy is followed by Coca cola in its marketing mix. For
products in different segments they charge different prices. The beverage market is considered to be
an oligopoly in which there are few sellers and many buyers. Coca Cola and Pepsi are the dominant
players. Pricing of its products is similar to that of Pepsi’s in particular segments. The price sensitive
consumers might switch especially in developing countries if the price of a product is more than that
of its competitor. Hence both the competitors come to an agreement of maintaining price parity in
each segment. However, Coca Cola offers multiple discounts on bulk purchases, sometimes by even
bundling the products.
Pepsi:
Pepsi products are priced as per the demand of the customers. The price in the Pepsi marketing mix
would be complete only after taking into consideration its beverages, snacks and other products.
The CSD are priced at different rates depends on the competition and the customers pocket. They
have various sizes of bottles offered at various rates. This are priced according to the quantity of the
drinks supplied. The promotion is also done keeping in mind the targeted customers.
The Tropicana beverages offered by Pepsi Co are priced a bit high as they are targeted to the health
conscious people. They are promoted in the same way, showing the health conscious people and the
people are made to relate this drink to the people who work out or the people who are concerned to
with the healthiness of a drink.
Lipton is also a bifurcation of this segment but they are mainly targeted to the niche customers. They
are priced accordingly, a bit high as a reason of that.
The chips and other things are priced accordingly, depending on the quantity one wants to buy. The
marketing mix pricing strategy of Pepsi is mostly dependent on its most important global competitor
Coca Cola and the demand from customers.
Redbull:
Red Bull is the market leader in the energy drinks industry inspite of having a number of competitors.
Hence, the pricing strategy is that of a market leader based on competitor pricing. They can charge a
premium for their products and customers will even buy it for their quality. As Red Bull was the first
in the energy drink category, it can enjoy the preference of its customers and its demand can
withstand hurdles. Customers prefer buying Red Bull in bulk as its cheaper than buying a single can.
Yet overall they are the most expensive energy drink compared to competitors like Tzinga, Cloud 9,
Gatorade, Rockstar, Monster and KS.
4)Conclusion And Future Strategy

1. Performance in sales (brand value)

Fig: Brand Value of Coca Cola from yr. 2006 -2017(source :Statisca )
As seen from the fig, there was a steady rise in brand value till 2015 but has started decreasing in the
recent years. The primary reason behind this is majority urban people are now health conscious
considering the long term effects of obesity and other side effects growing in the newer generations.
Another reason behind this is the increase of local competitors who provide substitute to Coca Cola.
Also, Coca Cola had to face social criticism in few regions due to exploited use of water leading to
water scarcity in the areas.
2. Coca Cola is not sold only in 2 countries viz. Cuba and North Korea who are considered as trade
embargoes for USA since 1962 and 1950 respectively.
Although, the organization has covered most of aspects in technology and marketing, there are few
more strategies which can be implemented as follows:
A)Replacement to alcohol drinks with the growing stress level in workspace and personal life, more
and more people are getting addicted to injurious addictions like alcohol, smoking, chewing tobacco
etc. Coca Cola can plan to launch a new sub brand focusing on this topic which has the potential to
have high demands and also create a good image among the public.
B)Development in purified water system. Kenley is a subsidiary of Coca Cola, but the sales are not
upto the mark in mineral water category. Bisleri had already created the brand name in the mineral
water section so much so that its name was used as equivalent to purified water bottles by the people.
Also these days, local distributors provide packaged drinking water at lower cost. Coca Cola can form
close tie-ups with such distributors and fix deals so that promotion of Kenley can increase among the
public.
C)Use of purified sea water for Coca Cola drinks Coca Cola and other beverage companies have been
often severely criticized for using tremendous amount of groundwater in their factories which resulted
in scarcity of drinking water to the people. Marketing Strategy of Coca Cola can either try to replenish
the used quantity after use or use a sea water purification technique with a one-time investment.

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