Preface

In the past we had only two foreign companies in the production of beverages. One is Coca-

Cola Company and the other Pepsi. In the recent years there is a change that we all can see.

Some newer companies have entered into this market. Still Coca-Cola is holding on to its

position in terms of its market share and market position. Like always it has got the same

tremendous response from the people in Bangladesh. Previously it used to dominate a little more

than what it does today. After the introduction of RC-Cola, a sister concern of Partex group they

have seen a little down fall in their market share. As people are getting more choice many of

Coca-Cola’s customers have diverted to RC-Cola beverages. Still with the company’s ever

attracting advertise they have been able to hold on to most of its customers. They also serve to

their customers the best quality beverage.

Company Overview

History

The first company that conducted its operation in the soft drink industry was Coca-Cola.

They brought a new revolution in the history of the world. Coca-Cola was established in May

1886 when a pharmacist Dr. John Styth PEMBERTON first produced syrup in a three-legged

brass pot in Atlanta, Georgia backyard. Coca-Cola first bottled in 1894. Large scale bottling was

only possible in 1899. They marketed and distributed the product in specific territories.

Mission Statement

Respect for labor and a human right is the fundamental to Coca-Cola Company’s principles

for conducting business around the world. We treat our employees in more that 200 countries in

which we do business in fairness, dignity with respect. Or bottling partners and we operate in

accordance with local laws and contribute to the communities. Ultimately, a company’s identity

is measured by how it connects with people and with the world around it. That is why The Coca-

Cola Company’s mission is articulated as a promise.

The Coca-Cola Company exists to

Benefit and refresh everyone it touches.

All of our success, both past and future, is a product of this promise. Our growth hinges upon

our ability to build and nature relationship-with consumers, customers, bottling partners,

suppliers, government agencies, communities, employees and share holders. Further, as we help

to build thriving communities all around the world, we seek to ensure a healthy and sustainable

marketplace for our beverages-today, and far into the future.

Motto of Coca-Cola:

Throughout the history of the world’s most popular soft drink, advertising for Coca-Cola has

followed the trends of time. Coca-Cola’s advertising slogans are memorable and create lasting

impressions. Since the first slogan was introduced in 1886 ‘Delicious and refreshing’. The

overall theme has been refreshment- one of the pleasant things in life, distinctive and available

nearly everywhere. Motto followed the lead to make Coca-Cola the best known soft drink in the

world.

Today, motto for Coca-Cola and the company’s other products are carefully aimed towards

individual tastes while understanding the universal appeal of refreshment. And very

appropriately, the company has globally launched its new motto Theme –“Enjoy Coca-Cola”.

‘Coca-Cola motto’, the world’s best-known consumer product demands the talents of

professionals in many different areas.

Evolution of Beverages and Carbonates

Water is an essential need of the human body. Most of the biological functions are based inappropriate

consumptions of water per day (eight glasses for a normal human being). Its shortage (Dehydration) leads

to problems like malfunctioning of kidney and excretion problematic. Beverages were developed as an

alternate to meet the body’s fundamental requirement for hydration. A classification list of beverages

is given in Table 1.Prior to twentieth century, European cities were highly affected from cholera,

dysentery another waterborne illnesses. Contaminated with several micro-organisms, water

was hazardous. Therefore Barley waters, Lemonades and orangeades were used to fulfill body’s hydration

requirement. Scientific development and considerable investigations on gases paved way towards

carbonated drinks. Joseph Priestley (who is widely credited for discovery of oxygen) dissolved carbon

dioxide in water under pressures to produce carbonated waters artificially. Commercially, mineral waters

were the first beverage product to hit market followed by carbonated drinks synonymous with “aerated

mineral water”. The first commercial artificially carbonated water product dates back to late eighteenth

century(Steen, 2006). Recommended for the consumption of lemon juice and soda water for stomach, it

was sold in tightly corked glass bottles. Early effervescent drinks were manufactured by mixing sodium

bicarbonate solution with lemon juice or lime juice. This mixture can cure scurvy and therefore became a

very strong reason for its use in on board a ship. Thus were used for medicinal pedigree to a greater or

lesser extent. Examples include quinine tonic water, used as a cure for malaria in tropical regions.

Consumer Analysis:

The Coca Cola Company exists to satisfy the consumer’s needs. The Coca Cola Company has

over 400 brands of drinks designed to satisfy a very wide range of consumers. They are able to

provide drinks for many different target markets including, people of all ages, sexes, races, etc.

Coca-Cola products are able to sell to a diverse worldwide population and its success is

unmatched. In today’s society, people are looking to lead better, healthier lives, Coca Cola

seeing this trend has begun to produce, diet drinks that have the same great taste as their regular

drinks while still being low fat or low calorie drinks, such as diet coke, or coke zero. Coca Cola

products are purchased by all the different classes, but mainly by the middle and high-class

citizens, because they have more money to spend on luxury items. Coca Cola is a very successful

company; due to their success they are able to spend more money making their factories work

more efficiently. They can do this by updating the equipment used to produce their drinks.

Although people today are becoming more conscious about their environment, and damage that

has been done in prior years. Many people make their purchase decisions partially based on a

company’s ethics, or social responsibility. By contributing to stop pollution both within and

outside their factories, they will gain the trust and respect of the potential buyers, who care about

saving our environment. In gaining their trust and respect more people will be willing to

purchase their products, because the company stands for the same goals that their consumers are

trying to protect. The Coca Cola Company tries to be more environmentally aware.

Brand Inventory

Brand elements

Memorability

Brand

Element

Criterion

Brand Name Coca-Cola can be easily recalled and recognized.

Slogans “Coca-Cola Enjoy” “Enjoy happiness” can be chosen to enhance

brand recall and recognition.

Jingles Jingle can be also memorable.

Package Attractive color with different packaging which contain all the

Information to make the package memorable one.

Logos &

Symbol

Unique logo and style of it by using red and white color that creates

attraction to its consumers mind.

Meaningfulness

Brand

Element

Criterion

Brand Name Name of Coca-Cola has come from coco leaves and cola nut.

Slogans Its slogan has excellent meaning which can convey a message to

build association.

Jingles Its jingle carries distinctive message to its customer.

Package Its packaging color conveys the meaning of joy and pleasure.

Logos &

Symbol

Its logo & symbol is unique and different from its competitor.

Likability:

Brand

Element

Criterion

Brand Name Coca-Cola name is liked by its customers

Slogans Coca-Cola slogans are oftenly liked by the customers like “open

Happiness”.

Jingles Its jingles are not very much liked by the people.

Package Customers like their attractive color with different packaging.

Logos &

Symbol

Its logos & symbols are very much famous and liked by the

customers.

Transferability :

Brand

Element

Criterion

Brand Name Coca-Cola is globally accepted Brand.

Slogans Its Slogan is easily acceptable through out the world.

Jingles Jingle is transferable according to the culture of the host country.

Package Packaging color and style is attractive through out the world.

Logos &

Symbol

Logo and Symbol is attractive.

Adaptability:

Brand

Element

Criterion

Brand Name Brand name is flexible and can be easier to changed or Developed

overtime.

Slogans The slogan is easily modifiable when necessary.

Jingles Jingles are adapted while operating globally.

Package Packaging can be redesigned according to situational demand.

Logos &

Symbol

Logo & symbol can be easily recognized.

Protectability

Brand

Element

Criterion

Brand Name The name Coke is legally protected.

Slogans Its slogan is also legally protected.

Jingles Its jingles are unique, so no body can copy that.

Package All TMs & copy rights are owned by Coca-Cola company.

Logos &

Symbol

They got the IP right.

Supporting marketing programs

Promotional activities of Coca-Cola:

Promotion means activities that communicate the merits of the product and persuade target

customers to buy it. According to marketing. A good way of promoting a product not only helps

to influence and motivate people to buy it but also give a good impression about a company and

it products.

Sales Promotion:

Sales promotion includes marketing activities-other than personal selling, advertising, and public

relations- that stimulates consumers, trade and dealer effectiveness. Sales promotion can be

aimed at end consumers, trade customers, or company’s employees. Coca-Cola offers all of these

sales promotions every year for various purposes. It includes free sampling and etc.

Sales promotion is generally a short run tool used to stimulate immediate increase in demand.

Frequently Coca-Cola uses sales promotion to improve the effectiveness of their promotion mix

ingredients, especially advertising. Research shows that sales promotion complements

advertising by yielding faster sales responses.

Advertising:

Advertising is a form of impersonal, one-way mass communication paid for the sponsor. Many

different media may transmit it. Examples include television, radio, newspapers, magazines,

books, billboards etc. Coca-Cola does advertise by these media as well. The Coca-Cola

advertising usually follows a campaign process that consists of five phases:

o Determining the advertising objectives

o Setting the campaign budget

o Determining the message to be transmitted to the target market

o Selecting the message vehicle and

o Evaluating the campaign

Advertising is one of the most important promotional tools among the promotion mix of a

company, which is used in order to convey their message along with visual effect. Cola is

number one global brand in soft drinks items. So it also uses media advertising in order to

capture full market coverage through out the world. In case of any sort of advertising campaign

or slogan i.e. the central theme of ad is the most important part advertisement along with its

storyboard. In fact, ad campaign communicates the product message to its target customers.

Public Relation:

Concerned about the public images, Coca-Cola often spend large sum of money to build a

positive consumer image. Public relations are the marketing function that:

o Evaluates public attitudes

o Identifies the policies and procedures of the company and

o Executes a program of action to earn public understanding and acceptance

A solid public relations program can generate favorable publicity also. Thus Coca-Cola now

spends huge money in the game field such as football and cricket, Sponsoring for charity shows

etc. Organizing the ‘Asian Test Cricket Championship’, Coca-Cola Companies of Bangladesh

paid Tk4, 000,000 approximate only for the final match of this tournament.

Profile of competitive brands

Coca Cola Pepsi

Key success

factor

Weight Rating Weighted

score

Rating Weighted

score

Financial

Position

0.08 4 0.32 3 0.24

Advertising 0.12 4 0.48 4 0.48

Market Share 0.12 4 0.48 3 0.36

Brand image 0.10 4 0.40 4 0.40

Customer

loyalty

0.10 3 0.30 3 0.30

Product quality 0.12 4 0.48 4 0.48

Product range 0.08 3 0.24 4 0.32

Distribution 0.10 4 0.40 3 0.30

Price

Competition

0.08 3 0.24 3 0.24

Geographical

Expansion

0.10 4 0.40 3 0.30

Total Score 1.00 3.74 3.42

PODs

Points of Difference

Another significant difference is the amount of income that the two companies make.  Coca Cola

is currently a much more profitable company than Pepsi is.  At the end of 2012, Pepsi had an

annual income of $457 million compared to over $4 billion made by Coca Cola.  Since this is

true, Coca Cola has a lot more resources that they can use for promotion. 

Pepsi is universally known to be Coca-Cola’s number one competitor.  Their overall image is

modern and appealing.  This is another point of difference between the two companies.  Coca

Cola emphasizes the originality of their product to maintain the very important repeat

buyers.  Their main product is called “Coca Cola Classic.”  Coca Cola has many loyal customers

that will support the company their entire lives.  Pepsi is not in a situation like this.  They are

using high-tech promotion tactics to obtain customers but it does not have as near as many

devoted buyers.   Pepsi attempts to make Coca-Cola look like an old and stale company while

promoting themselves as the Cola of today.  The goal of using high quality advertising and

promotion techniques is to impress people enough to cause them to try their product.  Their

website has a very flashy interface with animations and images and their commercials always

contain impressive technology.  There are currently many promotions in motion, each one

targeting different markets of people.  For example, there is a contest to win a “maxed out Mazda

RX-8” which will appeal to males ages 16-30.  There is also a promotion in which you win

“super bowl tickets for life” meaning you are provided with a ticket to the super bowl every year

of your life.  All of the many promotions are strategically placed to attract different markets of

people.  The basis for Pepsi selling many different products and carrying out many different

promotions is essentially to have every person possible in their market.

 

The final point of difference for Pepsi is that they put decent promotion efforts into all of their

products whereas Coca Cola focuses on a few popular brands.  

Brand mantra

Designing The Brand Mantra

EmotionalEmotional

ModifierModifier

DescriptiveDescriptive

ModifierModifier

BrandBrand

FunctionsFunctions

Fun Family Beverages

Brand exploratory

Brand associations

For Coca-Cola, typical perceptions might be that it is the original coke drink (‘The Real Thing’),

that its recipe is secret and unsurpassed, that it’s all-American or maybe global, that it’s youthful,

energetic, refreshing and so on. Visual associations might include the unmistakable red and

white logo and corporate colors, or the unique shape and tint of the original glass bottles.

These are mostly positive brand associations, but there may be negative ones too. For example,

Coca-Cola may be seen as unhealthy, or as a symbol of global ‘imperialism’ by American

brands. What is seen as a positive association to some may be unpleasant to others and negative

perceptions could become attached to a brand’s identity even if the company strives to present a

different character.

Of course, brands aren’t limited to the food and drink category.

If a brand results from a set of associations and perceptions in people’s minds, then branding is

an attempt to harness, generate, influence and control these associations to help the business

perform better

Brand positioning analysis

'Coca-Cola's' brand personality reflects the positioning of its brand. Positioning is in the mind of

the consumer and can be described as how the product is considered by that consumer. When

researching the positioning of a product, consumers are often asked how they would describe

that product if it were a person. Coca cola has positioned itself as a part of their daily life. This

affinity between the brand and the consumer leads to a high degree of loyalty and makes the

purchasing decision easier. Coca Cola has been successful by using Unique Selling preposition

as “Live the coke side of life”.

Cole basically associates this brand with emotions and joy. We name of Coke comes into mind

the first thing comes into mind is fun and entertainment.

Consumer perceptions analysis (vs. competition)

78.7 percent preferred Coca-Cola and 19.3 favored Pepsi, and consequently one can assume that

the taste of the product plays a large role in the choice of brand, particular in the case of Coca-

Cola. When comparing brand preference to the blind taste test, more specifically, comparing the

results of the highest ranked drink, it has been found, interestingly enough, that of those that

preferred Coca-Cola, 33.1 percent ranked pepsi as being second tasty of the two brands, whereas

66.9 percent chose coca cola as having the best taste.

SWOT Analysis:

Strengths

1. Patent

2. Own production plant

3. Research & Development

4. High market share

5. Brand image

Weaknesses

1. Do not sell on account

2. Less motivation down stream

3. Insufficient advertisement

4. Not skillful distributor

5. Over confidence on their product

Opportunities

1. High growth rate

2. Huge local market

3. Acceptance of pet bottles is higher than

4. bottles

5. Good relation with distribution channel

6. Good relation Govt.

Threats

1. Other existing company

2. Good taste of competitor

3. Political stability

4. Better professional promotion of other

5. competitor

Brand equity evaluation

Brand equity is difficult to measure because much of it depends on consumers' perception and opinions of

a brand. When a product has high brand equity they are successful at retaining their current customers by

keeping them satisfied with the quality of products and service. They are also successful at attracting new

customers who have heard of the brand through successful marketing or word of mouth.

Despite the numerous brands and the difficulty in measuring brand equity it is evident that Coca-Cola has

high brand equity. They are a company who has been in business for many years they have gained the

business of consumers in the soda market as well as numerous other beverage markets nationally and

internationally. Their sales and growth show that they are a successful company.

Coca-Cola also owns more than half of the world’s beverages and sells over 1 billion bottles per day. This

proves that Coca-Cola is without a doubt the market leader for soft drinks worldwide.

As far as loyalty is concerned, Coca-Cola spends Millions of Rands every year on advertising to ensure

that their customers remain interested in their products.   75% of people who purchase Coca-cola products

are loyal customers.

Muhter Kent, the company's chief executive, argued on a conference call that a 5% uptick in volume sales

and 8% revenue improvement during the last quarter were largely fuelled by popular loyalty to its

products.

"We always put our brands first in everything that we do, across each and every one of our operating

groups,"

"Our brand equity is growing stronger around the world as evidenced by a measurable increase in

consumer preference for our brands this quarter, as well as more potent global growth for our flagship

brand, Coca-Cola."

"Brand Coca-Cola health measures keep improving as we increased our favourite brand score versus our

primary competitor amongst the most critical consumer segments," said Kent.

Recommendations

Maintain existing strategies

Consolidate resources to focus on the soft drink market and divest of other businesses such as

fruit drinks

Leverage brand equity and financial resources to accelerate global market penetration with a view

toward long-term profits

Focus on global market expansion

Leverage brand equity and financial resources to dominate the global market

Consider divesting of fruit drink lines and then reallocating resources to dominate the global soft

drink market.