Promotional Strategies & Mix

Presented By-Imran Khan

Neeraj SharmaSaurabh Gupta

Shreshtha JaiswalSubash Kumar

Company Introduction

Coca-Cola was founded in May 1886 by Dr. John S. Pemberton in Atlanta, Georgia.

Name "Coca-Cola" was suggested by Dr. Pemberton’s bookkeeper, Frank Robinson.

Currently offers more than 500 brands in over 200 countries and serves over 1.6 billion servings each day.

Company operates a franchised distribution system dating from 1889

Evolution

1886

•Originated as a soda fountain beverage & sold for 5 cents/ glass

1899

•Signed the first bottling agreement

1916

•Birth of the first “contour” bottle

1920s

•Expanded internationally out of United States

1970

•Exited from India – FEMA regulations

1993

•Re-launched in India & acquired local brands

2000

•Leading Cola brand in India (Thums Up & Sprite combined)

Open happiness

Brands under Coca Cola

Marketing Strategy

Marketing Mix

Product LineQualityBrand NameLogo Packaging

3Product:

Product range of Coca-Cola:Coca-Cola, Coca-Cola classic, caffeine free Coca-Cola, diet Coca Cola caffeine free diet Coca Cola, diet Coca Cola with lemonVanilla Coca Cola, diet Vanilla Coca Cola, Cherry Coca Cola, diet Cherry Coca Cola, Fanta brand soft drinks, Sprite, diet Sprite Sprite Remix

Product Lifecycle of Coca Cola:

Product life cycle has four phases 1. Introduction 2. Growth 3. Maturity 4. Decline.

 

COCA-COLA

Major Markets:

U.S. Europe Asia Africa

U.S, Europe- Maturity StageAsia Africa- Still in growth stage

Trivia: The red and white Coca-Cola logo is recognized by 94% of the world's population

Marketing StrategyMarketing Mix

Modulation in PricesPsychological PricingPenetration Method

Price:

PRICING PHILOSOPHY:

In 2013 both Coca Cola and Pepsi had a solid presence in India and each had introduced a 300mL bottle. In order to grab market share Pepsi began to drop prices (even with summer approaching, which was contrary to policy in America). Shortly thereafter, Coca-Cola decided to drop their prices slightly, but focused on the reduced price point of their 200mL container. Coca- Cola planned to use the lower price point to penetrate new cities that were especially price sensitive. The carbonated soft drink market in India is nearly 69% of the total beverage market.

In India, the average income of a rural worker is Rs.2000 a month. Coca Cola launched a 200 ml bottle for just Rs.5, an affordable amount on the pockets of the rural audience.

This low price strategy was not unfamiliar to Coca-Cola. Both Coca Cola & Pepsi utilized a low price strategy in the early 1990s. After annihilating the low price store brands, Coca Cola chose to reposition itself as a "Premium" brand and then raise prices.

When people buy Coca-Cola they are not just buying the beverage but also the image that goes with it, therefore to have the price higher reiterates the fact that the product is of a better quality than the rest and that the consumer is not cheap. This is known as value-based pricing and is used by many other industries in attracting consumers.

Trivia: Around the world, a person on an average consumes a Coca Cola product every four days

Marketing Strategy

Marketing Mix

Intensive Distribution StrategyWarehouse & DeliveryMarketing ChannelsCoverage

Place:

Modes of Entry into the foreign Markets:

Direct Exporting Licensing Franchising

Coca-Cola also directly exports its merchandise to overseas distributors and companies. Other than exporting, the company markets internationally by licensing bottlers around the world and supplying them with the syrup needed to produce the product.

Manufacturer-sponsored wholesaler franchise system. It is very comparable to licensing but the only difference is that the finished products are sold to the retailers in local market.

Coca Cola has managed their company’s marketing and sales strategy within channels. This channel is direct to consumer and vending machines often have little to no competition and no trade or price promotions.

The Coca Cola Company operates three primary delivery systems for its business channels:

 Bulk delivery for the channels of large Supermarkets, Mass Merchandisers and Club stores; 

Key Channel Listing  Supermarkets Convenience Stores Fast Food Petroleum Retailers Chain Drug Stores Hotels/Motels/Resorts Mass Merchan disers Vending 

Coca Cola began using a new CooLift® delivery system in 2006 in a portion of the Company's territory which involves pre-building orders in the warehouse on a small pallet the delivery employee can roll off a truck directly into the customer's location. The CooLift® delivery system involves the use of a rear loading truck rather than a conventional side loading truck. 

The company works through independent bottlers of Coca Cola. They work in coordination with the Coca Cola company which produces the 'secret formula concentrate' and ships to the distributors and bottlers for final processing and packaging prior to shipment to the stores.

Coca-Cola floods all possible retailing stores in satisfying the third part, place. In supermarkets and convenient stores, Coca-Cola products are always easy to identify, and usually make up the greater proportion of options to buy. This increases their market exposure through effective use of the retailers.

Promotional Mix

PromotionTop line promotions:

Promotional activities intended towards mass consumers using mass media.

TV Ads, design of banners and other mega event (like world cup cricket match and other) sponsorship initiatives taken up by the company simultaneously all around India with no difference in designs or execution fall in this category.

Below the line promotion: Includes the promotion schemes, publicity material, Point of

Sale display Done by the company from zonal, plant, sales manager and area

sales manager level. At the sales manager and area sales manager level promotion is

done exclusively for the cities in their respective areas. These activities can be categorized under sales promotions

Promotion• Creating Santa Claus• Associating with McDonald’s, etc• Associating with cricket, cinema & music• Endorsing through top celebrities• Building high brand visibility• Re-inventing itself

Making it a generic product – “thanda matlab coca cola”

• Packaging it in an attractive & economical way

Coca Cola Studio@MTV embarks on the third season of its musical voyage

Coca-Cola India launches the 2012 edition of the Limca Book of Records Quiz

Tamil Actor & Fanta Brand Ambassador Tamanna Bhatia

'Meet and Greet with Kareena' contest in Chandigarh

Limca - do pal taazgi

Coca Cola India Marketing StrategyConsistent effort on its part to align its

product with the Indian Culture and traditionEarliest of the ad campaigns shows the brand

positioning itself as a relaxing drink, fighting off the hot weather and humidity of Indian weathers

Coca Cola adopted the dual strategy of Jingles and Celebrity endorsements

Popular Coca Cola Jingles in first decade of its existence - ‘Always The Real Thing’, ‘Pee Le Coca-Cola’, ‘Jo Chahe Ho Jaye…Coca-Cola Enjoy.’

Coca Cola India Marketing StrategyYear 2003 - “Thanda Matlab Coca cola ad” Amir Khan was presented in 6 different looks,

working on the simple philosophy of highlighting how Indian related to the brand as a cool relief.

If you meant refreshment you meant Coca Cola.

Instrumental in establishing Coca Cola as a brand in India.

Coca Cola India Marketing StrategyBollywood stars endorsing the brand - Karisma

Kapoor, Aamir Khan, Hrithik Roshan and Aishwarya Rai

Post 2003, next 5 years - “Cola War” with rivals Pepsi - aggressive marketing campaign - Coca Cola roped in 15 celebrities against 8 of Pepsi.

To counter all negative complaints Coca Cola Post 2009 - adopted the “Global happiness” campaign - experimented with different kinds of images

•Ad campaigns like “Saath Khao Khushiyaan Badao” -projected as a beverage enjoyed by the entire family together

Coca Cola India Marketing Strategy“Umeedon Wali Dhoop, Sunshine Wali Asha”

ad launched in the year 2012 Sells hope for better tomorrow and shows

that every and any dream is achievable . Also roped in “Sachin Tendulkar”, as a

“happiness brand ambassador” to support various CSR initiatives the brand is undertaking

Coca Cola India Marketing StrategyBesides Flagship Coca Cola ad campaign, the brand has

focused upon positioning other umbrella brands i.e Thumbs Up , Limca , sprite and Fanta etc.

Thumbs Up India branded as ‘Manly drink‘ in India since year 1993 roped in Salman Khan as the brand ambassador Coca Cola India has partnered with Salman Khan’s Charitable

foundation “Being Human“ and would be involved in various philanthropic initiates of the brands

Brand Fanta Zyada Fanta Zyada Fun’ tagline Bollywood actress Asin currently endorses the brand

Projected as a fun youth brand and celebrities the energy of young individuals

Ads are usually humorous and perky Fanta has occupied a strong market place Is identified as the “The Fun Catalyst”.

Promotion in IndiaIn order to add local flavour in its advertisements and

promotional activities, Coca Cola has collaborated with established Stars and Programmers (Daler Mehndi).

Coca-Cola also connected with movies such as ‘Taal’, ‘Dil Ka Rishta’, ‘Yaadein’ etc

The company has understood the importance of festivals in the Indian Culture and has taken lot of initiatives in this regard.

Coca-Cola has an enduring affiliation with cricket which is the most beloved game for Indians.

Hindi being the national language and the most spoken language in the country, most of the company’s advertisements are broadcasted in Hindi language.

Promotion in India – Ad CampaignTitle: 'Come home this Diwali‘Campaign Brief: Build a high impact, high

intensity wide spread campaign. Deploy multiple innovations in conjunction with standard outdoor media formats. Create high visibility brand presence at ambient locations. Create an air of festivity & celebration through various lighting & format based execution.

AdvertisingAs a part of ‘pull strategy’ and also due to intense

competition spends heavily on advertisements.Concept of aggressive advertising to promote products usedImportant tool to cater to mass marketsMainly does national advertisingIntroduce different themes and concepts to sell their

productAdvertises mainly in electronic media and out of home

advertisingAdvertisements build brand image and create awarenessUse big names of Indian film industry as the brand

ambassadors of the CompanyCreated memorable and catchy slogan since yearsE.g. Thanda Matlab Cola-Cola, Jo chaho ho jae Cola-Cola enjoy,

Coca-Cola-Piyo sir utha ke, Brrrrrrr!!!

SETTING OF ADVERTISING BUDGET Sets its advertisement budget

on the basis of competitor based budgeting.

Major competitor of Coca Cola is Pepsi and as Coca Cola realizes that Pepsi has increased its advertising budget, straight away Coca-Cola management plans to do the same so that they can compete in advertising department as well.

Trivia :Coca-Cola spends more money on advertising than Microsoft and Apple combined

Coca-Cola advertising budget (2010): $2.9 billionMicrosoft advertising budget (2010): $1.6 billionApple advertising budget (2010): $691 million

Mediums of AdvertisingPrint Media:

Coca cola is said to have a different print media department.

Coca Cola advertisements all over the world are creative so as to appeal to the mass media.

Coca-cola: "REFRESHING WIND" Print Ad by McCain Erickson India

Mediums of AdvertisingPoint of sale Materials:

Merchandising is essential to communicate to the consumer at the point of purchase.

Sales people and delivery personnel both take the additional responsibility of merchandising.

If required special teams are sent to specifically merchandise its products

Includes Posters and stickers displayed in different areas

Coolers, freezers, Display Racks

Mediums of AdvertisingTV Commercials:

Regular TV Commercials on different channelsfocuses on both rural as well as urban crowdfeature diffrent brand ambassdors from time to

timeTry to connect with the crowdExamples

Reasons to Believe India Brrr Ad Campaign

Mediums of Advertising Outdoor Advertising:

Very much conscious about their billboards and hoardings

Many sites in different locations for their billboards

Billboards are usually found at cross roads, buildings, shops

In India the Coca-cola can be seen painted on walls, bus stands, dhabas etc focusing in rural areas of India.

Coca-Cola splits advertising pie among Lowe Lintas, Weiden + Kennedy and McCann Erickson

In April 2012, Coca Cola brought together two of the country's best-known names in creative advertising, Prasoon Joshi and R Balki, to create its campaigns

Coca-Cola India named Balki-led Lowe Lintas

and V Sunil's Weiden + Kennedy as additional advertising agencies to work on the creatives of brand Coca Cola along with its long-standing agency, Prasoon Joshi's McCann Erickson.

Direct MarketingUses direct marketing in many waysIt partners with various restaurants, movie

theatres, etc. to carry its productSo when a customer orders a drink, the only

brand they are offered is Coca-Cola, which forces them to consume that brand itself

Thus Coca Cola forces out the competitors, and keeps the restaurants, or other businesses, purchasing their product over and over again

Eg. Mc Donalds, Dominos

Direct MarketingAccording to mobilemarketingmagazine.com,

Coca Cola uses mobile graphics and texts to appeal to markets on a more personal level

Cola also sponsors various sporting events in India and around the world in events like Cricket, Football, and Motor Racing etc

Direct Marketing

Coca-Cola India now with its ecommerce presence

Latest online store in pipeline, Coca Cola2home.com to provide home delivery

First of its kind venture by any FMCG company till date in India

Initially services available only in 7 cities providing free home delivery at minimum order of Rs. 300

Same day delivery is available if ordered before 12 noon

Can also make order with mobiles through m.Coca Cola2home.com.

Internet MarketingUses the internet to promote its productsCompany has its own website - simple to navigate Website allows customers to become interactive

through various games, contests, shopping, and through a special section of the website that enables consumers to find out how they can help their community.

Also company uses various social networking sites like Facebook, YouTube, Twitter to connect with the consumers.

Internet marketing helps to reach to those consumers who cant afford to spend time on T.V and are always online.

Internet Marketing

Coca-Cola“Happiness Machine around the world”

The “Happiness Machine” video, the result of a collaboration between Coca-Cola and integrated interactive marketing agency Definition 6, features a Coca-Cola vending machine transformed to deliver surprising “doses” of happiness to unsuspecting college students.

In India – Delhi; Thapar University, Patiala; DAV College Chandigarh; colleges in Punjab

Interview with CreatorsGoal:

To beef up its digital activation platform Plan was to release seven different pieces of content, iPhone

and social media applications, wallpaper screen savers and a video that would go viral

“The Happiness Machine” web video started out as just a piece of digital content, a dose of happiness

Coca-Cola“Happiness Machine around the world”

Spent zero on promoting “The Happiness Machine.” One status update was posted on Coca Cola’s Facebook Page, one tweet and that was it

Within a day the video was picked up by bloggers and it spread from there

Coca Cola uploaded the web video to Coca Cola’s YouTube channel on day one

In the first week there were one million visits. It hit the top of the viral video chart that week.

It was all about the exercise of producing creative video for online distribution

Aimed for something the audience would use and enjoy

Coca-Cola tries to bring India, Pakistan together via its new vending machinesET Bureau Mar 21, 2013, 03.09AM ISTCoca-Cola vending machine in upscale mall in South Delhi not

only dispenses Coca Cola but will very soon connect India and Pakistan.

Once a similar machine is installed in Karachi or another Pakistan city, users of the two vending machines can see and virtually touch each other

Coca-Cola has quietly launched an online campaign that seeks to connect people in not-so-friendly countries through vending machines, starting with India and Pakistan this year.

"This year, two countries will show that what unites us is stronger than what sets us apart and come together to share a Coca-Cola," says the commercial launched on YouTube.

This world peace initiative is part of the firm'shappiness project. "A moment of happiness has the power to bring the world together," it says.

Coca-Cola’s vending machinesCoca-Cola set up a 'hug machine' in Singapore-a vending machine

with red and white message announcing the consumer to 'hug' it, after which the consumer would be given a free Coca Cola. The 'hug machine' generated 112 million impressions within one day.

In Istanbul, it had installed a vending machine that gave away free Coca Cola if people could prove they were indeed a couple.

Coca-Cola is spending heavily on social media globally, though the spends are still small compared to what it spends on traditional mass media.

"Brands can't work remotely anymore so it is important to listen and engage to consumers," Wendy Clark, senior VP, integrated marketing communications and capabilities, at Coca-Cola had told ET last month.

"We make consumers part of our marketing channel, sharing content and engaging with them all the time," Clark had said, adding that the company was looking at investing in innovative ways to connect on social media.

Sales PromotionA sales promotion is an activity that is implemented to boost the

sales of a product or service temporarily. It allows price discounts and allowances to distributors and

retailers in order to push more products into the market. It employs both push strategy through promotions and pull strategy through advertisements and campaigns.

Coca-Cola does sales promotion in two ways to quickly increase sales.

Consumer - Oriented sales promotion:Getting ShelvesEye Catching PositionUnder The Crown Scheme

Trade - Oriented sales promotion:Discounts to retailers and storesReturn back allowancesMerchandising assetsFree goods or free tours

PublicityPublicity refers to non personal communications

regarding an organization, product, service or idea not directly paid or run under identified sponsorship.

For instance, when Coca Cola produces a new product, and someone on their lunch break purchases that new product, and enjoys it, they will tell others in the office about how great the new product is.

Today, the company can still use word of mouth advantage.

This will cause others to purchase the product, and in-turn increase sales.

Public RelationsPublic relations is defined as “the management function which

evaluates public attitudes, identifies the policies and procedures of an individual and organization with public interest, and executes a program of action to earn public understanding and acceptance”.

Coca-Cola can address law suits, rumors, stories, new products, and activities.

There is also a section of the website devoted to investors. Here, current, or future, investors can access financial statements and up-to-the- minute stock information.

The Coca-Cola India is also undertaking some projects as a part of their social cause and part of the corporate social responsibility. The support my school campaign along with NDTV has Sachin Tendulkar as the brand ambassador.

The project Unnati focuses on more yield of mangoes to farmers. Coca Cola also Sponsors events in cricket and music.

Sanjay Dutt and Sachin Tendulkar at Coca-Cola India and NDTV 'SUPPORT MY SCHOOL' campaign event at Yash Raj Studios in Andheri, Mumbai

Publicity & Public Relations

Coca Cola Market Positioning- Sustainable Community Model

Projects itself as a brand which wants to grow along with the society.

Has undertaken variety of community development projects in rural & urban areas.

One such example is Project Unnati. With a seed investment of $2 million, the project aims at training farmers and has has established about 100 demo farms in the pilot phase with plans to train 50,000 farmers over five years.

Coca Cola India’s Parvartan Program trains local Kirana store owners in good business practices. Similarly in another initiative, Coca cola has distributed Solar water cooler “ekocool” to female retailers in Interior regions of Uttar Pradesh.

SponsorshipCoca-Cola India was the

official beverage partner of The Commonwealth Games . Launched an impactful

outdoor campaign in Delhi NCR

45-day campaign rolled out on September 10

Is complemented by Coca-Cola India also launching its new visual identity system (VIS) and logo for the Games

SponsorshipAssociated with mega sporting events

in its efforts to promote healthy, active living and promoting social cohesiveness.

Partnership with sporting events across the world provides an opportunity to enhance brand value, build capabilities and further build upon the employee and system pride in being associated with such sporting events.

By associating with the Commonwealth Games, had the opportunity to refresh more than 8,000 athletes and delegates and more than 30,000 volunteers who took part in the Games

Sponsorship

Sponsorships:

First Commercial Sponsor of Olympic Games in 1928Fifa World Cup(Since 1978)Major League Baseball, NBA, NHL.1996 Cricket World CupIPL: Delhi DaredevilsEnglish Football League(Coca Cola Championship, League 1, 2)

Personal SellingHas many salespeople, who are individuals

representing the company to communicate, sell, service and build relationships with customers.

These salespeople promote their product to different customers within their regions, and once they sustain a customer, they sell their products to them and service them many times per week.

These individuals form close relationships with the customers in order to continue business with them.

Thus though minimum, the company also thus have many sales people for personal selling.

According to a Survey…

Able to recall Coca Cola

Fails to recall Coca Cola

86.67%

13.33%

Recall through images and taglines

Conclusion:Coca Cola has a high brand recall

According to a Survey…Recall amongst the aerated

drinks

Coca

Cola

72%

Pepsi28%

Conclusion:Coca Cola has a large bouquet of offering like Thums Up, Sprite, Fanta, Maaza, Limca, etc which contribute to the aggregate recall of Coca Cola

According to a Survey…

13%

60%

6%

4%

6%

4%7%

Hrithik RoshanAamir KhanJohn AbrahamFarhan AkhtarKatrina KaifMahendra Singh DhoniNo Celebrity

Ideal celebrity to endorse Coca Cola

Conclusion:Aamir Khan scores far above other celebrities when it comes to endorsing Coca Cola

Celebrity Endorsers

Than

k Yo

u!Thank

You!