Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
MARKETING REPORT:
PRESENTED BY:
1. MUHAMMED SAAD KHAN 9251485
SUBMITTED BY:
SOHAIL PASHA
DEDICATE OF THIS REPORT:
1. THIS REPORT IS DEDICATED TO MY ALLAHA AFTER THE DEDICATION TO MY ALLAHA.
2. THIS REPORT IS DEDICATED TO THE HOLY PROPHET “HAZRAT MUHAMMED [P.B.U.H]”. HE IS GREAT PHILOSPHER AND LEADER HAVE NEVER CAN SEE TO
THE WOLRD
3. ALSO DEDICATED TO MY PARENTS, ALL TEACHER & ALL MY FRIENDS.
4. AND ALSO DEDICATED TO “JABBAR BIN HAYAN”. HE IS GREAT SCIENTIST, RESEARCHER, MEDICIAN& ASTRONOLOGIEST
ACKNOWLEDGEMENT:
HELP ME TO MAKE THIS REPORT TO DIFFERENT ASPECTS.THIS DIFFERENT ASPECTS ARE FOLLOWING BELOW:
1. www.wikipedia.com 2. www.cocacola.com 3. www.solidpaper.com 4. www.bussinessweak.com 5. www.reportlinker.com
EXECUTIVE SUMMARY:
SCOPE:
Coca-Cola’s mission statement defines its goals, policies, and values and defines the competency of the company. It indicates the company’s scope; the reach of Coca-Cola is world-wide. It does not, however, do a good job of stating why its operation is better than anyone else’s. As a result, it does not define the competitive environment. Most of the ideals that Coca-Cola lists are generic -- every firm wants to do good by its shareholders and its customers. Consequently, the mission statement needs refined if it is to be taken seriously.
IMPORTANCE:
IN this report me as a researcher .I try to find the what is the key which have selected to coca cola company and the success has fell in his feet. I thing as a researcher I guess the coca cola company have work this 6 question. These questions is defined as given world:
1. What is plan have choose the coca cola company ? 2. Which is method to choose to achieving the plan? 3. Where is the marketing activity now days of coca cola?
4. Who is monitoring of financial aspects of coca cola? 5. When at the present time the goodwill of coca cola? 6. How the grow the market share of company?
TABLE OF CONTENT OF REPORT: NO NAME OF TOPIC: PG NO
1 INTRODUCTION OF COMPANY 1
2 MISSION STATEMENT 1 3 VISION STATEMENT 1 4 OBJECTIVE OF COMPANY 1-2 5 MANAGERIAL LEVEL 2 6 SWOT ANALYSIS 2-3 7 DEMOGRAPHICAL ENVIRONMENT 3-4 8 FINANCIAL CONDITION 4-8 9 PRODUCT & SERVICE
10 MARKETING PLAN 8-16 11 BRAND EQUITY 16-20 12 MARKET SHARE 20-21 13 NEW PRODUCT 21 14 COMPITITOR 21-23 15 USE AS A POLITICAL & CORPORATE SYMBOL
REPORT:
INTRODUCTION:
Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines internationally. The Coca-Cola Company claims that the beverage is sold in more than 200 countries.[1] It is produced by The Coca-Cola Company in Atlanta, Georgia, and is often referred to simply as Coke (a registered trademark of The Coca-Cola Company in the United States since March 27, 1944). Originally intended as a patent medicine when it was invented in the late 19th century by John Pemberton, Coca-Cola was bought out by businessman Asa Griggs Candler, whose marketing tactics led Coke to its dominance of the world soft-drink market throughout the 20th century.
The company produces concentrate, which is then sold to licensed Coca-Cola bottlers throughout the world. The bottlers, who hold territorially exclusive contracts with the
company, produce finished product in cans and bottles from the concentrate in combination with filtered water and sweeteners. The bottlers then sell, distribute and merchandise Coca-Cola to retail stores and vending machines. Such bottlers include Coca-Cola Enterprises, which is the largest single Coca-Cola bottler in North America and western Europe. The Coca-Cola Company also sells concentrate for soda fountains to major restaurants and food service distributors.
The Coca-Cola Company has, on occasion, introduced other cola drinks under the Coke brand name. The most common of these is Diet Coke, with others including Caffeine-Free Coca-Cola, Diet Coke Caffeine-Free, Coca-Cola Cherry, Coca-Cola Zero, Coca-Cola Vanilla, and special editions with lemon, lime or coffee.
In response to consumer insistence on a more natural product, the company is in the process of phasing out E211, or sodium benzoate, the controversial additive used in Diet Coke and linked to DNA damage in yeast cells and hyperactivity in children. The company has stated that it plans to remove E211 from its other products, including Sprite and Oasis, as soon as a satisfactory alternative is found.[2]
COCA COLA MISSION STATEMENT:
"Everything we do is inspired by our enduring mission:
• To Refresh the World... in body, mind, and spirit. • To Inspire Moments of Optimism... through our brands and our actions. • To Create Value and Make a Difference... everywhere we engage."
COCA COLA VISSION STATEMENT: To achieve sustainable growth, we have established a vision with clear goals. Profit: Maximizing return to shareowners while being mindful of our overall
responsibilities. People: Being a great place to work where people are inspired to be the best they can be. Portfolio: Bringing to the world a portfolio of beverage brands that anticipate and satisfy peoples; desires and needs. Partners: Nurturing a winning network of partners and building mutual loyalty. Planet: Being a responsible global citizen that makes a difference
OBJECTIVES:
• To refresh the world- in mind, body and spirit. Coca Cola Company is to provide the best product that they can to the public, and create customer satisfaction. To ensure this the company ensure that all employees are working to their highest standards to create the best product, in the quickest possible time to make sure that there is an ability for quick distribution. • The aim and objective of Coca-Cola Enterprises is to be the best beverage sales and customer Service Company. To us 'best' means being the number one or second brand in every category in which we compete, being our customers most valued supplier and establishing a winning and inclusive culture. • They also aim to never let their high standards of quality fail. To do this, there are strict assessments at each stage of the production of all products at Coca Cola production plants, throughout the day. When distributing any products, Coca Cola arrange with the distribution companies what standards Coca Cola expect from them. This means that the customer will always be...
• To create a value and make a difference- everywhere they engage. • To inspire moments of optimism- through their brands and actions
MANAGERIAL LEVEL:
To handle the enormous capacity of its business, the Coca Cola Company has divided up into six operating units: Middle and Far East Groups, Europe Group, The Latin America Group, The North America Group, The Africa Group and The Minute Maid Company. The Head Quarters is situated in the United States. Therefore, Coke is predominantly organized into an international area structure though the Minute Maid unit might be considered a global product structure.
SWOT ANALYSIS:
Coca-Cola Enterprises, Inc. - SWOT Analysis company profile is the essential source for top-level company data and information. The report examines the company’s key business structure and operations, history and products, and provides summary analysis of its key revenue lines and strategy. Coca-Cola Enterprises (CCE) is the world's largest marketer, producer, and distributor of
Coca-Cola products. The company is the sole licensed bottler for products of The Coca-Cola Company in Belgium, continental France, Great Britain, Luxembourg, Monaco, and the Netherlands. The company mainly operates in North America. It is headquartered in Atlanta, Georgia and employed about 73,000 people as on 31st December 2007 (FY2007). The company recorded revenues of $20,936 million during FY2007, an increase of 5.7% over 2006. The operating profit of the company was $1,470 million in FY2007, as compared to operating loss of $1,495 million in FY2006. The net profit was $711 million in FY2007, as compared to net loss of $1,143 million in FY2006
Scope of the report: - Provides all the crucial company information required for business and competitor intelligence needs - Contains a study of the major internal and external factors affecting the company in the form of a SWOT analysis as well as a breakdown and examination of leading product revenue streams - Data is supplemented with details on the company’s history, key executives, business description, locations and subsidiaries as well as a list of products and services and the latest available company statement
REASONS OF PURCHASE: - Support sales activities by understanding your customers’ businesses better - Qualify prospective partners and suppliers - Keep fully up to date on your competitors’ business structure, strategy and prospects - Obtain the most up to date company information available
Demographical environment:
The Coca-Cola Company (NYSE: KO) is a beverage company, manufacturer, distributor, and marketer of non-alcoholic beverage concentrates and syrups. The company is best known for its flagship product Coca-Cola, invented by pharmacist John Stith Pemberton in 1886. The Coca-Cola formula and brand was bought in 1889 by Asa Candler who incorporated The Coca-Cola Company in 1892. Besides its namesake Coca-Cola beverage, Coca-Cola currently offers more than 400 brands in over 200 countries or territories and serves 1.6 billion servings each day.[5]
The company operates a franchised distribution system dating from 1889 where The Coca-Cola Company only produces syrup concentrate which is then sold to various bottlers throughout the world who hold an exclusive territory.
The Coca-Cola Company is headquartered in Atlanta, Georgia. Its stock is listed on the NYSE and is part of DJIA, S&P 500 Index, the Russell 1000 Index and the Russell 1000 Growth Stock Index. Its current chairman and CEO is Muhtar Kent
FINANCIAL CONDITION:
TIME OF LAUNCH:
The Coca-Cola Company was originally established in 1891 as the J. S. Pemberton Medicine Company, a co-partnership between Dr. John Stith Pemberton and Ed Holland.[6] The company was formed to sell three main products: Pemberton's French Wine Cola (later known as Coca-Cola), Pemberton's Indian Queen Hair Dye, and Pemberton's Globe Flower Cough Syrup.[6]
In 1884, the company became a stock company and the name was changed to Pemberton Chemical Company.[6] The new president was D. D. Doe while Ed Holland became the new Vice-President.[6] Pemberton stayed on as the superintendent.[6] The company's factory was located at No. 107, Marietta St.[6] Three years later, the company was again changed to Pemberton Medicine Company, another co-partnership, this time between Pemberton, A. O. Murphy, E. H. Bloodworth, and J. C. Mayfield.[6]
Finally in October 1888, the company received a charter with an authorized capital of $50,000.[6] The charter became official on January 15, 1889. By this time, the company had expanded its offerings to include Pemberton's Orange and Lemon Elixir.[6]
THE CURRENT CONDITION:
According to the 2005 Annual Report,[9] the company sells beverage products in more than 200 [10] countries. The report further states that of the more than 50 billion beverage servings of all types consumed worldwide every day, beverages bearing the trademarks owned by or licensed to Coca-Cola account for approximately 1.5 billion. Of these, beverages bearing the trademark "Coca-Cola" or "Coke" accounted for approximately 78% of the Company's total gallon sales.
Also according to the 2007 Annual Report, Coca-Cola had gallon sales distributed as follows:
• 37% in the United States • 43% in Mexico,India, Brazil, Japan and the People's Republic of China • 20% spread throughout the rest of the world
In 2010 it was announced that Coca-Cola had become the first brand to top £1 billion in annual UK grocery sales .[11]
INCOME STATEMENT OF COCA COLA:
One year Ended
April 2, 2010
April 3, 2009
NET OPERATING REVENUES $ 7,525 $ 7,169
Cost of goods sold 2,541 2,590 GROSS PROFIT 4,984 4,579 Selling, general and administrative expenses 2,705 2,624 Other operating charges 96 92 OPERATING INCOME 2,183 1,863 Interest income 60 60 Interest expense 85 85 Equity income (loss) net 136 17 Other income (loss) net (115) (40) INCOME BEFORE INCOME TAXES 2,179 1,815 Income taxes 553 456 CONSOLIDATED NET INCOME 1,626 1,359 Less: Net income attributable to noncontrolling interests 12 11 NET INCOME ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY $ 1,614
$ 1,348
BASIC NET INCOME PER SHARE $ 0.70 $ 0.58 DILUTED NET INCOME PER SHARE $ 0.69 $ 0.58 DIVIDENDS PER SHARE $ 0.44 $ 0.41 AVERAGE SHARES OUTSTANDING 2,304 2,313 Effect of dilutive securities 23 6 AVERAGE SHARES OUTSTANDING ASSUMING DILUTION 2,327 2,319
1
BALANCE SHEET OF COCA COLA:
April 2, 2010
April 2, 2009
ASSETS CURRENT ASSETS Cash and cash equivalents $ 5,684 $ 7,021
Short-term investments 3,038 2,130 TOTAL CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS 8,722 9,151
Marketable securities 72 62 Trade accounts receivable, less allowances of $44 and $55, respectively 3,705 3,758 Inventories 2,327 2,354 Prepaid expenses and other assets 2,382 2,226 TOTAL CURRENT ASSETS 17,208 17,551 EQUITY METHOD INVESTMENTS 6,230 6,217 OTHER INVESTMENTS, PRINCIPALLY BOTTLING COMPANIES 519 538 OTHER ASSETS 2,095 1,976 PROPERTY, PLANT AND EQUIPMENT, less accumulated depreciation of $6,752 and $6,906, respectively 9,036 9,561 TRADEMARKS WITH INDEFINITE LIVES 6,261 6,183 GOODWILL 3,905 4,224 OTHER INTANGIBLE ASSETS 2,149 2,421
TOTAL ASSETS $ 47,403 $ 48,671
LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable and accrued expenses $ 5,963 $ 6,657
Loans and notes payable 6,670 6,749 Current maturities of long-term debt 546 51 Accrued income taxes 404 264 TOTAL CURRENT LIABILITIES 13,583 13,721 LONG-TERM DEBT 4,419 5,059 OTHER LIABILITIES 2,763 2,965 DEFERRED INCOME TAXES 1,481 1,580 THE COCA-COLA COMPANY SHAREOWNERS' EQUITY
Common stock, $0.25 par value; Authorized 3,520 and 3,520 shares, respectively 880 880 Capital surplus 8,646 8,537 Reinvested earnings 42,136 41,537 Accumulated other comprehensive income (loss) (1,445) (757)
Treasury stock, at cost 1,214 and 1,217 shares, respectively (25,345) (25,398)
EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY 24,872 24,799 EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS 285 547 TOTAL EQUITY 25,157 25,346
TOTAL LIABILITIES AND EQUITY $ 47,403 $ 48,671
CASH FLOW OF COCA COLA:
Three Months Ended
April 2, 2010
April 3, 2009
OPERATING ACTIVITIES
Consolidated net income $ 1,626 $ 1,359
Depreciation and amortization 295 283 Stock-based compensation expense 53 53 Deferred income taxes 34 (20) Equity income or loss, net of dividends (118) (3) Foreign currency adjustments 93 42 Gains on sales of assets, including bottling interests (14) (5) Other operating charges 71 74 Other items 73 100
Net change in operating assets and liabilities (787) (1,010)
Net cash provided by operating activities 1,326 873 INVESTING ACTIVITIES
Acquisitions and investments, principally beverage and bottling companies and trademarks (6) (179) Purchases of other investments (915) (6) Proceeds from disposals of bottling companies and other investments 14 37 Purchases of property, plant and equipment (393) (467) Proceeds from disposals of property, plant and equipment 16 7 Other investing activities (84) 9 Net cash provided by (used in) investing activities (1,368) (599) FINANCING ACTIVITIES
Issuances of debt 2,773 5,758
Payments of debt (2,922) (3,001)
Issuances of stock 123 10 Purchases of stock for treasury (2)
Dividends (1,015) (950) Net cash provided by (used in) financing activities (1,043) 1,817 EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (252) 24 CASH AND CASH EQUIVALENTS
Net increase (decrease) during the period (1,337) 2,115 Balance at beginning of period 7,021 4,701
Balance at end of period $ 5,684 $ 6,816
PRODUCTS & SERVICES:
PRODUCTS:
With a portfolio of more than 3,300 beverages, from diet and regular sparkling beverages to still beverages such as 100 percent fruit juices and fruit drinks, waters, sports and energy drinks, teas and coffees, and milk-and soy-based beverages, our variety spans the globe
SERVICES:
Innovation is always on tap with Coca-Cola FoodService (CCFS). Restauranteurs can find ways to increase sales, better manage personnel, increase profits and grow the business through CCFS. Bringing creativity and consumer and industry insights to food and beverage operators, CCFS offers operators ways to build and sustain profit and growth and develop their brands.
CCFS adds value to operators through programs such as Cokesolutions.com, a site that gives operators access to customized promotions, cost-effective merchandising and beverage innovations; Ponle Mas Sabor, a
guide to Hispanic marketing and opportunities in foodservice; as well as other programs designed to improve employee recruitment and retention.
For more information about these programs and to learn more about how CCFS brings value to restaurant operators, choose one of the links to the right.
MARKETING PLAN:
TARGETING:
The company's beverages are generally for all consumers. However, there are some brands, which target specific consumers.
For example, Coca-Cola's diet soft drinks are targeted at consumers who are older in age, between the years of 25 and 39. PowerAde sports water target those who are fit, healthy and do sport. Winnie the Pooh sipper cap Juice Drink target children between the ages 5-12.
This type of market approach refers to market segmentation.
The Coca-Cola Company when advertising, has a primary target market of those who are 13-24, and a secondary market of 10-39.
POSITIONING:
Product
The Coca-Cola Company's products include beverage concentrates and syrups, with the main product being finished beverages.
The business has over 300 brands of beverages around the world with the main ones being Coke, Fanta, Lift, Sprite, Frutopia 100% Fruit Juice, and PowerAde.
The Coca-Cola Company packages its beverages into plastic bottles of sizes 2 litres, 1.25 litres, 600mL and 300mL. These are also available in aluminium cans of 375mL.
Coca-Cola is the most well known trademark, recognised by 94 per cent of the world's population. The business is very successful and holds a very good reputation.
Marketing strategies for product
The Coca-Cola Company uses marketing strategies to differentiate its product from its competitors to gain a competitive advantage. These are listed in the table below.
Marketing strategyExplanation of marketing strategy
Extension/product differentiationIn 2002, the Coca-Cola Company extended the products of Coke and developed the new products Coke with lemon and Vanilla Coke. This extension:·Responded to consumer demands.·Generated sales and profit.
InnovationIn 2001, Coca-Cola had innovated and developed the introduction of purchasing the company's products from vending machines via SMS messaging.In 2002, the company innovated and came up with a new packaging idea, the Fridge Pack. The Fridge Pack consists of cans packed 2-by-6. This innovation has:·Increased consumer awareness and preference.·Increased rate of consumption and profitability.
Price
The prices of Coca-Cola's products vary according to the brand and the size. The prices of the main products are shown below.
ProductSizePrices (approx. not on sale prices)
Coke, Fanta, Lift, SpriteCoke, Fanta, Lift, SpriteCoke, Fanta, Lift, SpriteCoke, Fanta, Lift, SpriteCoca-Cola soft drinksCoca-Cola soft drinksPowerAde2L bottle1.25L bottle600mL bottle300mL bottle375 x 30 cans375 x 18 cans ---$2.57$1.35$2.10 - $2.30$1.30$17.87$12.98$2.80
Pricing Methods/Pricing strategies
The Coca-Cola Company's products are sold in retail stores, convenient stores, petrol stations etc. The pricing methods/strategies are set by those the company sells to. Petrol stations and convenient stores usually sell Coca-Cola products at a fixed price.
However, retail outlet uses pricing methods and pricing strategies when selling Coca-Cola products.
Pricing methods
Pricing methodExplanation of pricing method
Competition-based pricingCoca-Cola products are usually priced below, above or equal to its competitors' prices.For example, during Easter (2003) sale periods (Coca-Cola vs. Pepsi):Coca-Cola soft drinks 2L - $1.68Pepsi soft drinks 2L - $1.87Coca-Cola soft drinks 375 x 18 - $9.98Pepsi soft drinks 375 x 24 - $9.98
Discount priceCoca-Cola products are often marked down during sale periods and special occasions. This will:·Generate sales·Increase profits
Pricing strategies
Pricing strategyExplanation of pricing strategy
Meet-the-competition pricingThe Coca-Cola products pricing are set around the same level as its competitors.
Psychological pricingMost of the Coca-Cola products use this method of pricing. For example, for a pack of 375mL x 18 cans of Coca-Cola soft drinks it is priced at $9.98 instead of $10.00.This pricing strategy makes consumers perceive the products to be cheaper.
PLACE:
The Coca-Cola Company sells its products to bottling and canning operations, distributors, fountain wholesalers and some fountain retailers. These then distributes them to retail outlets, milk bar and corner stores, restaurants, petrol stations and newsagents.
The Coca-Cola Company
Wholesalers/distributors
Retail/corner stores
Restaurants, petrol stations
Consumers
The Coca-Cola Company's distribution channel
Place strategies
Place strategiesExplanation of place strategy
Indirect distributionThe Coca-Cola Company uses intermediaries in its distribution. That is, the company does not sell its products directly to its consumers.
Intensive distributionThe Coca-Cola Company uses the intensive distribution strategy. The business's products are sold in almost every outlet including: ·retail outlets ·small shops ·restaurants ·petrol stations ·newsagents ·schools ·sports and entertainment venues·from vending machines
PROMOTION TOOLS:
Coca-Cola's advertising has significantly affected American culture, and it is frequently credited with inventing the modern image of Santa Claus as an old man in a red-and-white suit. Although the company did start using the red-and-white Santa image in the 1930s, with its winter advertising campaigns illustrated by
Haddon Sundblom, the motif was already common.[62] [63] Coca-Cola was not even the first soft drink company to use the modern image of Santa Claus in its advertising: White Rock Beverages used Santa in advertisements for its ginger ale in 1923, after first using him to sell mineral water in 1915.[64][65]
Before Santa Claus, Coca-Cola relied on images of smartly dressed young women to sell its beverages. Coca-Cola's first such advertisement appeared in 1895, featuring the young Bostonian actress Hilda Clark as its spokeswoman.
1941 saw the first use of the nickname "Coke" as an official trademark for the product, with a series of advertisements informing consumers that "Coke means Coca-Cola".[66]
In 1971, a song from a Coca-Cola commercial called "I'd Like to Teach the World to Sing", produced by Billy Davis, became a hit single.
Coke's advertising is pervasive, as one of Woodruff's stated goals was to ensure that everyone on Earth drank Coca-Cola as their preferred beverage. This is especially true in southern areas of the United States, such as Atlanta, where Coke was born.
Coca-Cola sales booth on the Cape Verde island of Fogo in 2004.
Some of the memorable Coca-Cola television commercials between 1960 through 1986 were written and produced by former Atlanta radio veteran Don Naylor (WGST 1936–1950, WAGA 1951–1959) during his career as a producer for the McCann Erickson advertising agency. Many of these early television commercials for Coca-Cola featured movie stars, sports heroes and popular singers.
During the 1980s, Pepsi-Cola ran a series of television advertisements showing people participating in taste tests demonstrating that, according to the commercials, "fifty percent of the participants who said they preferred Coke actually chose the Pepsi." Statisticians were quick to point out the problematic nature of a 50/50 result: most likely, all the taste tests really showed was that in blind tests, most people simply cannot tell the difference between Pepsi and Coke. Coca-Cola ran ads to combat Pepsi's ads in an incident sometimes referred to as the cola wars; one of Coke's ads compared the so-called Pepsi challenge to two chimpanzees deciding which tennis ball was furrier. Thereafter, Coca-Cola regained its leadership in the market.
Selena was a spokesperson for Coca-Cola from 1989 till the time of her death. She filmed three commercials for the company. In 1994, to commemorate her five years with the company, Coca-Cola issued special Selena coke bottles.[67]
The Coca-Cola Company purchased Columbia Pictures in 1982, and began inserting Coke-product images in many of its films. After a few early successes during Coca-Cola's ownership, Columbia began to under-perform, and the studio was sold to Sony in 1989.
Coca-Cola has gone through a number of different advertising slogans in its long history, including "The pause that refreshes," "I'd like to buy the world a Coke," and "Coke is it" (see Coca-Cola slogans).
In 2006, Coca-Cola introduced My Coke Rewards, a customer loyalty campaign where consumers earn points by entering codes from specially marked packages of Coca-Cola products into a website. These points can be redeemed for various prizes or sweepstakes entries.[68]
The business uses a range of promotional activities.
Promotional strategyExplanation of promotional strategy
AdvertisingThe Coca-Cola Company uses advertising as its main source of increasing consumer awareness. It mainly uses the television. There are many television advertisements on Coca-Cola products. This source allows the company's products to reach a large audience.The latest television advertisement for Coca-Cola soft drinks was the 'You know you want it' advertisement. One of the older one are ' If you drink it, you get better of life' The company also uses the radio as another source of advertisement. This is a cheaper source of approach compared to the television.Recently, the company benefited from its involvement in the world's celebrated games such as the Olympics and the FIFA World Cup. Where millions were watching these games, the business had substantial advertising and promotions of the company's brands.The cost of advertising over the past 3 years .The Coca-Cola Company's advertising costs
Personal sellingEvery year, The Coca-Cola Company has a highly trained sales team, which acts as a representative of the company to the retailers. This strategy helps to maintain service and product loyalty. It has been demonstrated by the business to be highly effective.
Publicity In February 2003, Vanilla Coke was released to the media as a news brief outlining the huge profit achieved by the business (from the Sydney Morning Herald 14th February 2003). This helped The Coca-Cola Company to strengthen the image of the business's products.
Advertising
An 1890s advertisement showing model Hilda Clark in formal 19th century attire. The ad is titled Drink Coca-Cola 5¢. (US)
Coca-Cola ghost sign in Fort Dodge, Iowa. Note older Coca-Cola ghosts behind Borax and telephone ads.
Coca-Cola signboard in Lahore, Pakistan.
Coca-Cola's advertising has significantly affected American culture, and it is frequently credited with inventing the modern image of Santa Claus as an old man in a red-and-white suit. Although the company did start using the red-and-white Santa image in the 1930s, with its winter advertising campaigns illustrated by Haddon Sundblom, the motif was already common.[62] [63] Coca-Cola was not even the first soft drink company to use the modern image of Santa Claus in its advertising: White Rock Beverages used Santa in advertisements for its ginger ale in 1923, after first using him to sell mineral water in 1915.[64][65]
Before Santa Claus, Coca-Cola relied on images of smartly dressed young women to sell its beverages. Coca-Cola's first such advertisement appeared in 1895, featuring the young Bostonian actress Hilda Clark as its spokeswoman.
1941 saw the first use of the nickname "Coke" as an official trademark for the product, with a series of advertisements informing consumers that "Coke means Coca-Cola".[66]
In 1971, a song from a Coca-Cola commercial called "I'd Like to Teach the World to Sing", produced by Billy Davis, became a hit single.
Coke's advertising is pervasive, as one of Woodruff's stated goals was to ensure that everyone on Earth drank Coca-Cola as their preferred beverage. This is especially true in southern areas of the United States, such as Atlanta, where Coke was born.
Coca-Cola sales booth on the Cape Verde island of Fogo in 2004.
Some of the memorable Coca-Cola television commercials between 1960 through 1986 were written and produced by former Atlanta radio veteran Don Naylor (WGST 1936–1950, WAGA 1951–1959) during his career as a producer for the McCann Erickson advertising agency. Many of these early television commercials for Coca-Cola featured movie stars, sports heroes and popular singers.
During the 1980s, Pepsi-Cola ran a series of television advertisements showing people participating in taste tests demonstrating that, according to the commercials, "fifty percent of the participants who said they preferred Coke actually chose the Pepsi." Statisticians were quick to point out the problematic nature of a 50/50 result: most likely, all the taste tests really showed was that in blind tests, most people simply cannot tell the difference between Pepsi and Coke. Coca-Cola ran ads to combat Pepsi's ads in an incident
sometimes referred to as the cola wars; one of Coke's ads compared the so-called Pepsi challenge to two chimpanzees deciding which tennis ball was furrier. Thereafter, Coca-Cola regained its leadership in the market.
Selena was a spokesperson for Coca-Cola from 1989 till the time of her death. She filmed three commercials for the company. In 1994, to commemorate her five years with the company, Coca-Cola issued special Selena coke bottles.[67]
The Coca-Cola Company purchased Columbia Pictures in 1982, and began inserting Coke-product images in many of its films. After a few early successes during Coca-Cola's ownership, Columbia began to under-perform, and the studio was sold to Sony in 1989.
Coca-Cola has gone through a number of different advertising slogans in its long history, including "The pause that refreshes," "I'd like to buy the world a Coke," and "Coke is it" (see Coca-Cola slogans).
In 2006, Coca-Cola introduced My Coke Rewards, a customer loyalty campaign where consumers earn points by entering codes from specially marked packages of Coca-Cola products into a website. These points can be redeemed for various prizes or sweepstakes entries.[68]
BRAND EQUITY:
Logo design
The famous Coca-Cola logo was created by John Pemberton's bookkeeper, Frank Mason Robinson, in 1885.[44] Robinson came up with the name and chose the logo's distinctive cursive script. The typeface used, known as Spencerian script, was developed in the mid 19th century and was the dominant form of formal handwriting in the United States during that period.
Robinson also played a significant role in early Coca-Cola advertising. His promotional suggestions to Pemberton included giving away thousands of free drink coupons and plastering the city of Atlanta with publicity banners and streetcar signs.[45]
Contour bottle design
The equally famous Coca-Cola bottle, called the "contour bottle" within the company, but known to some as the "hobble skirt" bottle, was created in 1915 by bottle designer Earl R. Dean. In 1915, the Coca-Cola Company launched a competition among its bottle suppliers to create a new bottle for the beverage that would distinguish it from other beverage bottles, "a bottle which a person could recognize even if they felt it in the dark, and so shaped that, even if broken, a person could tell at a glance what it was."[46]
Earl R. Dean's original 1915 concept drawing of the contour Coca-Cola bottle.
Chapman J. Root, president of the Root Glass Company, turned the project over to members of his supervisory staff, including company auditor T. Clyde Edwards, plant superintendent Alexander Samuelsson, and Earl R. Dean, bottle designer and supervisor of the bottle molding room. Root and his subordinates decided to base the bottle's design on one of the soda's two ingredients, the coca leaf or the kola nut, but were unaware of what either ingredient looked like. Dean and Edwards went to the Emeline Fairbanks Memorial Library and were unable to find any information about coca or kola. Instead, Dean was inspired by a picture of the gourd-shaped cocoa pod in the Encyclopedia Britannica. Dean made a rough sketch of the pod and returned back to the plant to show Mr. Root. He explained to Root how he could transform the shape of the pod into a bottle. Chapman Root gave Dean his approval.[46]
The prototype never made it to production since its middle diameter was larger than its base, making it unstable on conveyor belts.
Faced with the upcoming scheduled maintenance of the mold-making machinery, over the next 24 hours Dean sketched out a concept drawing which was approved by Root the next morning. Dean then proceeded to create a bottle mold and produced a small number of bottles before the glass-molding machinery was turned off.[47]
Chapman Root approved the prototype bottle and a design patent was issued on the bottle in November, 1915. The prototype never made it to production since its middle diameter was larger than its base, making it unstable on conveyor belts. Dean resolved this issue by decreasing the bottle's middle diameter. During the 1916 bottler's convention, Dean's contour bottle was chosen over other entries and was on the market the same year. By 1920, the contour bottle became the standard for the Coca-Cola Company. Today, the contour Coca-Cola bottle is one of the most recognized packages on the planet..."even in the dark!".[48]
As a reward for his efforts, Dean was offered a choice between a $500 bonus or a lifetime job at the Root Glass Company. He chose the lifetime job and kept it until the Owens-Illinois Glass Company bought out the Root Glass Company in the mid-1930s. Dean went on to work in other Midwestern glass factories.
Although endorsed by some[who?], this version of events is not considered authoritative by many[who?] who consider it implausible. One alternative depiction has Raymond Loewy as the inventor of the unique design, but, while Loewy did serve as a designer of Coke cans and bottles in later years, he was in the French Army the year the bottle was invented and did not emigrate to the United States until 1919. Others have attributed inspiration for the design not to the cocoa pod, but to a Victorian hooped dress.[49]
In 1944, Associate Justice Roger J. Traynor of the Supreme Court of California took advantage of a case involving a waitress injured by an exploding Coca-Cola bottle to articulate the doctrine of strict liability for defective products. Traynor's concurring opinion in Escola v. Coca-Cola Bottling Co. is widely recognized as a landmark case in U.S. law today.[50]
In 1997, Coca-Cola also introduced a "contour can," similar in shape to its famous bottle, on a few test markets, including Terre Haute, Indiana.[51] The new can has never been widely released.
A new slim and tall can began to appear in Australia as of December 20, 2006, it cost AU$1.95. The cans have a distinct resemblance to energy drink cans. The cans were commissioned by Domino's Pizza and are available exclusively at their restaurants.
In January 2007, Coca-Cola Canada changed "Coca-Cola Classic" labeling, removing the "Classic" designation, leaving only "Coca-Cola." Coca-Cola stated this is merely a name change and the product remains the same. The cans still bear the "Classic" logo in the United States.
In 2007, Coca-Cola introduced an aluminum can designed to look like the original glass Coca-Cola bottles.
In 2007, the company's logo on cans and bottles changed. The cans and bottles retained the red color and familiar typeface, but the design was simplified, leaving only the logo and a plain white swirl (the "dynamic ribbon").
In 2008, in some parts of the world, the plastic bottles for all Coke varieties (including the larger 1.5- and 2-liter bottles) was changed to include a new plastic screw cap and a slightly taller contoured bottle shape, designed to evoke the old glass bottles.[52]
Coke Mini
A 200ml "stubby" bottle widely available throughout China. These are sold in small shops for 1 yuan, and must be consumed on site in order to return the bottle.
Coke mini is a 7.5 ounce can packaging of Coca-Cola that debuted in December 2009.[53][54][55] There are plans to also sell smaller cans of Sprite, Fanta Orange, Cherry Coca-Cola and Barq's Root Beer[56
MARKET SHARE:
According to the 2010 Annual Report,[9] the company sells beverage products in more than 200 [10] countries. The report further states that of the more than 50 billion beverage servings of all types consumed worldwide
every day, beverages bearing the trademarks owned by or licensed to Coca-Cola account for approximately 1.5 billion. Of these, beverages bearing the trademark "Coca-Cola" or "Coke" accounted for approximately 78% of the Company's total gallon sales.
Also according to the 2007 Annual Report, Coca-Cola had gallon sales distributed as follows:
• 37% in the United States • 43% in Mexico,India, Brazil, Japan and the People's Republic of China • 20% spread throughout the rest of the world
In 2010 it was announced that Coca-Cola had become the first brand to top £1 billion in annual UK grocery sales .
Coca-Cola is the best-selling soft drink in most countries. While the Middle East is one of the only regions in the world where Coca-Cola is not the number one soda drink, Coca-Cola nonetheless holds almost 25% marketshare (to Pepsi's 75%) and had double-digit growth in 2003.[28] Similarly, in Scotland, where the locally produced Irn-Bru was once more popular, 2005 figures show that both Coca-Cola and Diet Coke now outsell Irn-Bru.[29] In Peru, the native Inca Kola has been more popular than Coca-Cola, which prompted Coca-Cola to enter in negotiations with the soft drink's company and buy 50% of its stakes. In Japan, the best selling soft drink is not cola, as (canned) tea and coffee are more popular.[30] As such, the Coca-Cola Company's best selling brand there is not Coca-Cola, but Georgia.[31]
Some claim Coke is less popular in India due to suspicions regarding the health standards of the drink.[citation
needed]
NEW PRODUCTS:
The company announced a new "negative calorie" green tea drink, Enviga, in 2006, along with trying coffee retail concepts Far Coast and Chaqwa.
On May 25, 2007, Coca-Cola announced it would purchase Glaceau, a maker of flavored vitamin-enhanced drinks (vitamin water), flavored waters, and energy drinks, for $4.1 billion in cash.[33]
On September 3, 2008, Coca-Cola announced its intention to make cash offers to purchase China Huiyuan Juice Group Limited (which has a 42% share of the Chinese pure fruit juice market[34]) for US$2.4bn (HK$12.20 per share).[35] China's ministry of commerce blocked the deal on March 18, 2009, arguing that the deal would hurt small local juice companies, could have pushed up juice market prices and limited consumers’ choices.[36]
In October 2009, Coca-Cola revealed its new 90-calorie mini can that holds 7.5 fluid ounces.[37] The first shipments are expected to reach the New York City and Washington D.C. markets in December 2009 and nationwide by March 2010.[37]
COMPITIORS:
Pepsi is usually second to Coke in sales, but outsells Coca-Cola in some markets. Around the world, some local brands compete with Coke. In South and Central America Kola Real, known as Big Cola in Mexico, is a fast-growing competitor to Coca-Cola.[57] On the French island of Corsica, Corsica Cola, made by brewers of the local Pietra beer, is a growing competitor to Coca-Cola. In the French region of Brittany, Breizh Cola is available. In Peru, Inca Kola outsells Coca-Cola, which led The Coca-Cola Company to purchase the brand in 1999. In Sweden, Julmust outsells Coca-Cola during the Christmas season.[58] In Scotland, the locally produced Irn-Bru was more popular than Coca-Cola until 2005, when Coca-Cola and Diet Coke began to outpace its sales.[59] In India, Coca-Cola ranked third behind the leader, Pepsi-Cola, and local drink Thums Up. The Coca-Cola Company purchased Thums Up in 1993.[60] As of 2004, Coca-Cola held a 60.9% market-share in India.[61] Tropicola, a domestic drink, is served in Cuba instead of Coca-Cola, due to a United States embargo. French brand Mecca Cola and British brand Qibla Cola, popular in the Middle East, are competitors to Coca-Cola. In Turkey, Cola Turka is a major competitor to Coca-Cola. In Iran and many countries of Middle East, Zam Zam Cola and Parsi Cola are major competitors to Coca-Cola. In some parts
of China Future cola is a competitor. In Slovenia, the locally produced Cockta is a major competitor to Coca-Cola, as is the inexpensive Mercator Cola, which is sold only in the country's biggest supermarket chain, Mercator. In Israel, RC Cola is an inexpensive competitor. Classiko Cola, made by Tiko Group, the largest manufacturing company in Madagascar, is a serious competitor to Coca-Cola in many regions. Laranjada is the top-selling soft drink on the Portuguese island of Madeira. Coca-Cola has stated that Pepsi was not its main rival in the UK, but rather Robinsons drinks.
USE AS A POLITICAL & CORPORATE SYMBOL:
Coke dispenser flown aboard the Space Shuttle in 1996. (US)
Coca-Cola advertising in the High Atlas mountains in Morocco.
The Coca-Cola drink has a high degree of identification with the United States, being considered by some an "American Brand" or as an item representing America. The identification with the spread of American culture has led to the pun "Coca-Colanization".[95] [96]The drink is also often a metonym for the Coca-Cola Company.
There are some consumer boycotts of Coca-Cola in Arab countries due to Coke's early investment in Israel during the Arab League boycott of Israel (its competitor Pepsi stayed out of Israel).[97] Mecca Cola and Pepsi have been successful alternatives in the Middle East.
A Coca-Cola fountain dispenser (officially a Fluids Generic Bioprocessing Apparatus-2 or FGBA-2) was developed for use on the Space Shuttle as "a test bed to determine if carbonated beverages can be produced from separately stored carbon dioxide, water and flavored syrups and determine if the resulting fluids can be made available for consumption without bubble nucleation and resulting foam formation". The unit flew in 1996 aboard STS-77 and held 1.65 liters each of Coca-Cola and Diet Coke.[98]
Related Documents
