Question

branding assignment :

brand: coca cola,

A. Find brand history/competitive set.find:

1. key founders, 2. Key Milestones/Dates relating to brand's progress 3. Any other interesting factors. 4. Identify the other key players 5. Their points of difference in comparison to your chosen brand. 6. Share of market figures if available.

B. SWOT analysis of coca cola (strenghts, weaknes, opportunity, threats)

C. Target Audience Snapshots of Coca cola:

identify at least 3 audience segments and develop snapshots for each (Visual and Verbal descriptions) which include demographics, psychographics and media habits.

D. Positioning Stayement

Using Moore's Formula,develop a Postioning Statement for your chosen brand against the key competitor.

Answer 1

(A) The Coca-Cola Company, American corporation founded in 1892 and today engaged primarily in the manufacture and sale of syrup and concentrate for Coca-Cola, a sweetened carbonated beverage that is a cultural institution in the United States and a global symbol of American tastes. The company also produces and sells other soft drinks and citrus beverages. With more than 2,800 products available in more than 200 countries, Coca-Cola is the largest beverage manufacturer and distributor in the world and one of the largest corporations in the United States. Headquarters are in Atlanta, Georgia.

Coca Cola is the largest beverage company of the world, and it provides consumers with more than five hundred different brands. Coca Cola is the most valuable company of the world and it includes as products Fanta, Coca Cola Zero, Powerade, and Minute Maid. At the moment the company focuses on the having sustainable community protecting environment and having good economical development.

Company is also called an organization and it is consist of structure, policies, corporate culture which all can become dysfunction in extremely changing business environment. Manager can make changes in structure and policies which are difficult to change but the company’s culture is extremely hard to change. Yet adapting to the culture is often a key to successful implementation of company’s new strategies.

(B)

Coca-Cola Strengths – Internal Strategic Factors

1. Strong brand identity – Coca-Cola is a highly popular brand with a unique brand identity. Its soft drinks are the most-selling drinks in history.
2. Highest brand equity – Coca-Cola is undoubtedly one of the most renowned brands with the highest brand equity. It was also awarded ‘highest brand equity award’ in 2011 by Interbrand.
3. Extended global reach – It is sold in more than 200 countries with 9 billion servings per day of Company products. It has introduced more than 500 new products globally. Some of these are variations of Coca-Cola beverage, like Coco Cola Vanilla and Cherry Coca-Cola. Its brands are known to touch every lifestyle and demography.
4. Greatest brand association and customer loyalty – Coca-Cola is considered one of US’s most emotionally-connected brands. This valuable brand is associated with ‘happiness’ and has strong customer loyalty. Customers can quickly identify their particular taste. Finding its substitutes is difficult for them. Moreover, Coca-Cola and Fanta have a huge fan following than other beverage names in the industry.
5. Largest Brand Valuation – Coca-Cola is listed as the 3rd Best Global Brand on Interbrand’s annual ranking. Having an estimated brand value of $79.96 billion, it has retained the top position for many years.
6. Dominant Market Share – Out of Coca-Cola and Pepsi, the only two largest manufacturers of soft drinks in the beverage segment, Coca-Cola has the largest market share. Coke, Sprite, Diet Coke, Fanta, Limca, and Maaza are the highest growth drivers for Coca-Cola.
7. Unparalleled distribution system – Coca-Cola has the most efficient and most extensive distribution network in the world. The company has nearly 250 bottling partners globally.
8. Acquisitions – Coca-Cola acquired AdeS in 2016. AdeS is the largest soy-based beverage brand in Latin America. Through this acquisition, Coca-Cola expanded its ready-to-drink beverage portfolio.

Coca-Cola Weaknesses – Internal Strategic Factors

1. Aggressive competition with Pepsi – Pepsi is the biggest rival of Coca-Cola. Had it not been Pepsi, Coca-Cola would have been the clear market leader in the beverage.
2. Product diversification – Coca-Cola has low product diversification. Where Pepsi has launched many snacks items like Lays and Kurkure, Coca-Cola is lagging in this segment. It gives Pepsi leverage over Coca-Cola.
3. Health concerns –Carbonated drinks are one of the major sources of sugar intake. It results in two grave health issues – obesity and diabetes. Coca-Cola is the biggest manufacturer of carbonated beverages. Many health experts have prohibited the use of these soft drinks. It is a controversial issue for the company. However, Coca-Cola hasn’t devised any health alternative or solution for this problem yet.

Coca-Cola Opportunities – External Strategic Factors

1. Introduce new products and diversify its segments – Coca-Cola has the opportunity to introduce new offerings in health and food segments just like Pepsi. It can contribute to their revenue, and they can branch out from carbonated drinks.
2. Increase presence in developing nations – Many regions with hot climate have the highest consumption for cold drinks. Thus, increasing presence in such locations can be excellent – Middle Eastern and African countries are a good example.
3. Bring advanced supply chain system – Coca Cola’s business is entirely dependent upon logistics and supply chain. Transportation costs and fuel prices are always on the rise. Thus, coming up with some advanced and improved systems for distribution can be an opportunity.
4. Packaged drinking water – Coca-Cola owns several packaged drinking water brands like Kinley. There is a great potential for expansion in this segment for Coca-Cola. There is an opportunity to expand and bring more healthy drinks in the market to avoid people’s criticism.

Coca-Cola Threats – External Strategic Factors

1. Water usage controversy – Coca-Cola has faced many criticisms over its water management issue. Many social and environmental groups have claimed that the company has a vast consumption of water in water-scarce regions. Besides, people have alleged that Coca-Cola is polluting water and mixing pesticides in water to clear contaminants.
2. Packaging controversy – Greenpeace censured Coca-Cola in its published report in 2017 for its use of single-use plastic bottles. It has also been criticized over its recycling and renewable sources.
3. Direct and indirect competition – Although direct competition from Pepsi is clear in the market, however, there are many other companies which are indirectly competing with Coca-Cola. Starbucks, Costa Coffee, Tropicana, Lipton juices, and Nescafe, are the indirect competitors of Coca-Cola which can threaten its market position.

(C) Segmentation enables Brands to define the appropriate products for different kind of customers. Coca Cola doesn’t target a specific segment but adapt its marketing strategy by developing new products.

Age: Generally, Coke does not have a specific target and is addressed to everyone. But the main consumers are 12-30 years old people; even if there is no specific product or communication for less than 12 or more than 30, the brand succeed in reaching them, through partnerships for example (restaurants, fast foods such as McDonald’s…), or thanks to its value among consumers. So, the core target audience of Coca Cola is youngster or youth. Their targeting is not based on gender but the results show that both genders like this product and use it (almost 50/50). Finally, Coca Cola consider each customer as a target and a potential consumer. All age groups are being targeted but the most potential is the age group from 18-25 that covers around 40% of total age segments.

Life style: no life style targeted but more and more busy life style and mobile generation (youth) are considered to be the most important part of Coke’s consumers.

Occupationon: no occupationon targeted but consumers are mainly students and family oriented people Nature: fun, joy, entertainment loving

Customer’s Media Habits There are some habits which are given as follow:
The young target audience of the brand loves media exposure
Mobile generation & social media is part of daily life
Connected people; they like innova(ons, they like being surprised.

(D) Coca Cola has strategically positioned itself within the world soft drink market. It faces a vital question: does it have to keep the same positioning or to adapt according to the 200 countries where the brand sells its products. The brand has understood this principle while ago: “think global, act local”. Coca is thus willing to keep the same core product which is coke, but it adapts the offer to local needs. They use strategic posi,oning in order to have the same image all around the world, which is a success because it is perceived today as a part of daily life everywhere. This perception of the brand by the consumer leads to a high degree of loyalty and makes the purchasing decision more automatic. Coca Cola has been successful by using Unique Selling preposition as “Live the coke side of life”, related to joy and happiness. Consumers basically associate this brand with these emotions. When the name of Coke is mentioned, the first thing that comes into mind is fun and entertainment.