Industrial organizationmatilde machado product differentiation 3 4. Coca cola spends a lot on marketing and promotion but still if its products prices were not as affordable, its sales would have been lower. In other words, the consumer has a stimulus to buy the product as. Pepsi has been targeting its marketing activities for younger audience in order to gain brand loyalty among those who havent yet made their final decision between coke and pepsi. Coca cola company strategy of sales was price penetration where low price are charged and the company. Goods are different but at the same price some consumers will buy one and some will buy other, it really depends on their preferences.
Ramazan macin coca cola differentiation and diversification. An oligopoly like cocacola uses product differentiation to. Today, cocacola is a worldwide brand and an instantly recognizable household name. Apr 15, 2015 ramazan macin coca cola differentiation and diversification 1. Project report marketing management product strategy of coca cola. Cocacola kenya in the soft drinks industry and to establish the competitive strategies it had.
Trying to be all things to all people will put a firm on the fast track to mediocrity, and so a firm needs to decide what kind of competitive advantage to pursue and which market segments it should target. Pepsis strategy in the carbonated soft drinks market term project man 385 prof. It contributes to the highest sales of soft drinks globally. The coca cola companys long term growth strategy of investing in emerging markets, is related to the coca cola company projections in these markets. It was invest by dr john pemberton, who was a pharmacist in atlanta. By using the differentiation strategy, coke creates a product and service that is unique and valued. Comparative advertising is a marketing strategy in which a companys product or. Differentiation for cocacola is achieved through perceived superior quality product, which surpasses their nearest rivals, and high brand image and recognition. We are confident in our ability to adapt and adjust to capitalise on opportunities and address challenges as and when they arise.
From the star cocacola drink to inca kola in north and south america, vita in africa, and thumbs up in india, the cocacola company owns a product portfolio of more than 3500 products. Feb 25, 2016 the coca cola company recently announced that it had entered into a binding agreement to acquire initial minority equity shareholding in chi ltd. Because of this, cocacola has come up with long term objectives. Jul 09, 2019 understand more about the coca cola company and the pepsico company. The company can produce a few differentiated beverages to test customers response in the new market.
Two recent cocacola ads being touted for this years cannes advertising awards festival point to the problem. To be successful, a company needs to get both its strategy and tactics. This paper performs a strategic analysis of the cocacola company, a leader in. Jun 28, 2007 two recent coca cola ads being touted for this years cannes advertising awards festival point to the problem. With the presence in more than 200 countries and the daily average servings to 1. Coca cola is a classic example of how to do diversification, with a standing commitment to exploring new ideas and growing product diversity that, even in a world when people are so virulently antisugar, the coca cola brand is still largely adored. Coca cola uses the differentiation strategy to make themselves unique and separated from other companies. For a new entrant to compete effectively, they would have to be willing to expend the time and resources necessary to first convince the consumer to try the new product, and after trial, switch their loyalties.
The coca cola company follows a broad differentiation strategy. Overallcost leadership, differentiation and focus strategy. Product differentiation, such as offering different beverages in flexible packaging options, allowed cocacola to customize the product for different market segments. Ko advantages cocacola pursues a differentiation strategy, and has built its company around the pursuit of this strategy.
Product differentiation there are two types of product differentiation. Comparative advertising is a marketing strategy in which a companys product or service is presented as superior when. The coca cola brand is globally valued and recognized. In econ 101 12, i tell the story of how cocacola disastrously tinkered with cokes flavor when they marketed new coke during the 1980s. Project report marketing management product strategy of. Product differentiation being the most commonly used one of these two strategic typologies spencer, joiner, and salmon, 2009. The cocacola company has been an established trademark in the united states since 1886. An evaluation of marketing strategies undertaken by coca. Company has successfully positioned itself on the following standards. This was a case study and only primary data was used for the study. The coca cola company has been an established trademark in the united states since 1886. Ko advantages cocacola pursues a differentiation strategy.
Of the four ps of marketing, product is often thought to be the linchpin, the element that holds all other elements together. The drink did not have bubbles at that time and started selling. Pepsico has introduced several brands in the market depending on the demand of the consumers. Marketing strategy of coca cola coca cola strategy. Invented by pharmacist john stith pemberton in 1886, coca cola is known for its prize beverage product the cocacola company, 2014. Ramazan macin coca cola differentiation and diversification 1. The intense competition between coca cola and pepsi, who are the largest producers of carbonated drinks in india, will make a good example to understand how they differentiate their offerings in india. Mar 22, 20 which business level strategy does coca cola use. For example coca cola company have twelve 12 factory plants, sixty 60 depots and over four hundred thousand 400,000 dealers or retailers of coca cola product in nigeria. Product differentiation and the characteristics and features. Threat of substitute productsthis can bring change to the competitive environment where the firm. For them, product differentiation is definitely the secret ingredient.
It is an extremely important element in the marketing mix furthermore, todays marketing thinking focuses not only on the product but on the customers. The company has superior quality beverage products, packaging, high brand image and recognition, the. An analysis of price, product and communication julia anders research paper undergraduate communications public relations, advertising, marketing, social media publish your bachelors or masters thesis, dissertation, term paper or essay. Outer environment analysis of cocacola as cocacola provokes an instant consumption stimulus it is very difficult for the brand to attract the consumer as long as it is not kept in view. Coca cola segments the market on the basis of the type of products bought by customers. The organizations target one market segment or the entire market by using this strategy. A differentiation strategy involves the firm creating a productservice, which is considered unique in some aspect that the customer values because the customers needs are.
Pepsis strategy in the carbonated soft drinks market. Product differentiation and the characteristics and. Pdf the strategic positioning of cocacola in their global. Differentiation process distinguishing a product source of competitive advantage areas quality, price, functions, design, characteristics, advertising and availability 3. Through the differentiation strategy, the company tries to position its product in the manner that it stands out to be different from the products of the same category porter, 2008. Aug 19, 2019 from the star cocacola drink to inca kola in north and south america, vita in africa, and thumbs up in india, the cocacola company owns a product portfolio of more than 3500 products. Ko advantages coca cola pursues a differentiation strategy, and has built its company around the pursuit of this strategy. Cocacolas better tasting competitor pepsi has taken a slightly different approach to the branding of its coladrink. Technology advances, including product transportation, telecommunication, and computerization, became the driving force behind cocacolas ability to capitalize.
An example for such successful implementation of marketing strategy is coca cola. The cocacola company business level and corporate level strategies this paper analyzes the businesslevel and corporatelevel strategies of the cocacola company in order to identify the most important strategies which have contributed to its success in the past and can help it in competing effectively in the long run. But combinations like cost leadership with product differentiation are hard but not impossible to implement due to the potential for conflict between cost. The company has also used their promotion and packaging as a means of further differentiation, for example, the cocacola bottle, which has become an internationally recognised symbol. The coca cola company has continued to be one of the leading firms that provide refreshments to customers through creating value to consumers, making a difference, and inspiring moments of optimism and happiness. Apr 17, 2019 product differentiation deals with making changes in the marketing mix of a product so as to differentiate it from whatever the competition is offering or to offer a product which stands out in the market.
Examining cocacola and pepsi brands under the basis of. Cocacola in the world, id give it back to you and say, it cant be done. Dec 03, 2016 10 business marketing strategies you should model that made coca cola worth billions. Product differentiation deals with making changes in the marketing mix of a product so as to differentiate it from whatever the competition is offering or to offer a product which stands out in the market. Over the past decade, coca cola has been experiencing a decline in sales due to increasing health and obesity concerns. Over the past decade, cocacola has been experiencing a decline in sales due to increasing health and obesity concerns. Due to the similarity in brands manufactured by the companies, product differentiation has been the main strategy. They also have nonprice attributes that customers will pay a premium for. The three generic business strategies according to michael porter are.
Coca cola kenya in the soft drinks industry and to establish the competitive strategies it had adopted to cope with the competition. Similarly coca cola has created its differentiation by utilizing soft sell approach. Brand differentiation coca cola and pepsi cola market. Coca cola is known as soft drink of the world bell, 2004. Understand more about the cocacola company and the pepsico company.
The product differentiation comes from established marketing campaigns that have created brand identification and loyalties. Technology is used at every step of coca colas value chain syrup manufacturing, bottling operations and storage at retail shops. Differentiation strategy, as the name suggests, is the strategy that aims to distinguish a product or service, from other similar products, offered by the competitors in the market. By applying these strategies, cocacola is among the brands that is one of the most known and whose. Its beverages consist of energy drinks, juices, juice drinks, soft drinks, sports drinks, tea and coffee drinks, and water. Coca cola is one of the most leading company in soft drink beverage industry. Porters generic strategies are based on the idea that in order to achieve a competitive advantage a firm needs to make hard choices. There are several ways to achieve product differentiation. The goal of this tactic is to help businesses develop a competitive advantage and define compelling unique selling propositions usps that set their product apart from competitors. Coca cola company spends round about 20% of their total advertisement budget for maintaining and communicating on its differentiation strategy.
Product differentiation is a marketing strategy that creates differences from other competiting products by focusing on its unique characteristics and features. Product differentiation is the secret ingredient pepsi vs. Market focus and growth strategy of the coca cola company. Differentiation for coca cola is achieved through perceived superior quality product, which surpasses their nearest rivals, and high brand image and recognition. The company is most wellknown for its soft drink, coke. Our group strategy our group strategy is our blueprint for success. Brand positioning positioning defines where your product stands in relation to others offering similar products and services in the marketplace as well as the mind of the consumer. Due to the similarity in brands manufactured by the companies, product differentiation has been the main strategy of capturing a larger market share in the global markets kavilanz, 2007. The ccc attributes this to a positive correlation between wealth and the increase in consumption of nonalcoholic readytodrinknartd beverages. Dec 11, 2017 coca cola pricing strategy published on december 11, 2017 december 11, 2017 107 likes 11 comments. Cocacola has used both branding and cost leadership strategies to expand its products in the united states and abroad. The intense competition between cocacola and pepsi, who are the largest producers of carbonated drinks in india, will make a good example to understand how they differentiate their offerings in india. Differentiation strategies are not about pursuing uniqueness for the sake of being dif ferent.
It positions us to capture growth and deliver longterm value. Marketing strategy for coca cola company uk essays. Coca cola pricing strategy published on december 11, 2017 december 11, 2017 107 likes 11 comments. Oct 08, 2018 coca cola spends a lot on marketing and promotion but still if its products prices were not as affordable, its sales would have been lower. How coca cola is continuing its portfolio diversification. An evaluation of marketing strategies undertaken by coca cola.
The cocacola brand is globally valued and recognized. In 1889 by asa candler, coca cola was bought, branded, and then became a corporation in 1892. This content was copied from view the original, and get the alreadycompleted solution here. An investigation of the effects of generic competitive strategies on. Cocacola uses the differentiation strategy to make themselves unique and separated from other companies.
Oct 01, 2010 the three generic business strategies according to michael porter are. Cocacola offers products for all different ages, except for. One is called the happiness factory and is a willy wonkaish fantasy following the. The company has also used their promotion and packaging as a means of further differentiation, for example, the coca cola bottle, which has become an internationally recognised symbol. The cocacola company recently announced that it had entered into a binding agreement to acquire initial minority equity shareholding in chi ltd. Coca cola first brand positioning patent medicine cure to headaches and fatigues tax imposition in 1898 and coca colas change of category. From a personal perspective, cocacola company can make use of market testing to measure the effectiveness of the proposed positioning strategy. Ko advantages cocacola pursues a differentiation strategy, essay.
Because of this, coca cola has come up with long term objectives. Cocacola is the oldest carbonated soft drinks company, and since then, it has been using differentiation strategy to make its products. Because of the products unique attributes, if suppliers increase their prices. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. An oligopoly like cocacola uses product differentiation.
Pemberton, an atlanta pharmacist, when he tried to. Cravens, p110 the coca cola company has introduced coke zero as new product and focused to. Enterprises, firms, marketing, international, coca cola company, strategies. Cocacola finds it appropriate to apply differentiated marketing. Hoping to avoid price competition, an oligopoly depends on product differentiation. Product differentiation is a process used by businesses to distinguish a product or service from other similar ones available in the market. Sep 08, 2018 bcg matrix in the marketing strategy of coca cola. While cost leadership is the main generic strategy sued by coca cola, it has also used differentiation to gain an advantage over the competitors. Coca colas strength is marketing and new marketing and advertisement channels have a big impact on the company. Interview guides were administered among senior managers at coca cola kenya to collect data.
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