MARKETING PROJECT

PHASE 2

Group 3
Abhijay Goyal- 18PGDM064
Akshita Agarwal- 18PGDM068
Mohini Jindal- 18PGDM091
Saharsh Saraogi- 18PGDM098
Sahil Bambroo- 18PGDM099
Yamini Nayar- 18PGDM124
 PRODUCT REVIEW

Coca- Cola is one of the most popular consumer durable products in the world. With the

power to penetrate almost the entire population of India the company has been growing

tremendously even in the recent time. With a reported revenue of ~9.500 crores beating its

rival Pepsi by a noticeable margin, the company proves how to sustain in the market which

was established in 18th century through believing in the following:

1. Market acceptability – “Change is the only constant” as truly said by today’s

marketers, coco -cola has been able to tap and adapt to the recent market trends. With

the millennials, believing in healthy product consumption, the company introduced

coke zero along with diet coke to accept the changing customer preferences and

emerge as the market leader.

2. Marketing maestro – A company that has sustained the market for more than 125

years, has set an example for other companies to how to market their products. With

innovative marketing ads and campaigns such as “Taste the feeling” and “Share a

Coke”, the company has emerged in the market as the leader because of its innovation

and creativity.

The combination of above two has set the pace for the company in all these years. In addition

to the above belief the company also follows a strong vision. Let us look at that in brief:

Vision Statement:

People, profit, planet, productivity the 4 P’s highlight how the company has correctly

identified the and harnessed the important aspects in the society and put a strong vision

statement in the eyes of the world.

  People: Be a great place to work where people are inspired to be the best they can be.

 Planet: Be a responsible citizen that makes a difference by helping build and support

sustainable communities.

 Profit: Maximize long-term return to shareowners while being mindful of our overall

responsibilities.

 Productivity: Be a highly effective, lean and fast-moving organization.

Mission Statement:

The following three bullet points encompasses the belief of a billion dollar company

 To refresh the world...

 To inspire moments of optimism and happiness...

 To create value and make a difference

Live Our Values

Coca cola values serve as a compass for their actions and describe how they behave in the

world.

 Leadership: The courage to shape a better future

 Collaboration: Leverage collective genius

 Integrity: Be real

 Accountability: If it is to be, it's up to me

 Passion: Committed in heart and mind

 Diversity: As inclusive as our brands

 Quality: What we do, we do well

 STP ANALYSIS OF COCA- COLA

MARKET SEGMENTATION

The key segmentation variables are geographic, demographic, psychographic and behavioral.

 Geographic segmentation

Geographic segmentation means dividing the market into different geographical units such as,

cities, regions or neighborhood. Coca-Cola has a nationwide network of product distribution

but the company is segmented more in urban and suburban areas as compared to the rural areas.

 Demographic segmentation

Under demographic segmentation, the market is divided into groups based on variables such

as age, family life cycle, gender, income, education, religion, occupation, race, generation,

nationality and social class. Demographic variables are the most important base of Coca-Cola

Company for distinguishing their customer groups. The reason is that consumers’ wants,

preferences, and usage rates are very often associated with demographic variables. Another is

that demographic variables are easier to measure because they Coca Cola can evaluate or

conduct surveys for the demographic segmentation.

a) Age and Life-Cycle Stage

Coca-Cola’s consumers’ wants and abilities change with age. Age and life cycle

are tricky variables because there are different needs and wants as accord to the

age of a person. The main sector which Coca-Cola Company targets is the youth

because there is a much need of refreshment and energizers to cope up with their
 daily activities. As per the survey conducted, we can see the same that Coca

Cola is mainly consumed for its taste or refreshment.

b) Gender

Gender is also an issue that is needed to be given priority by Coca-Cola. Men

and women tend to have different behavioral and attitudinal orientations, based

partly on genetic makeup and partly on socialization practices. Coca Cola

targets both the genders with its wide variety of drinks. The market is relatively

large and it is open to both genders, thereby allowing greater diversification of

product. Through the primary survey also if we see, 61% are males and the rest

are females. Only 17 out of 40 males prefer coke while 11 out of 25 females

prefer Coke over its competitors.

Females:

Males:

c) Family size

Family size basis is also a basis of segmentation for Coca-Cola. In our society,

we have families with different family sizes. So Coca-Cola makes a variation in

their served bottle size into a number of ways such as 500ml, 1L, 1.5L, 2L pack.

People can easily select a suitable pack based on their family size.

From the survey also we can see that most of the people prefer different sizes

of the bottles, however 200ml pet bottle is preferred the most in the sample.
  Psychographic segmentation

In psychographic segmentation, Coca Cola buyers are divided into different groups on the basis

of lifestyle, personality or values. People in the same demographic group can exhibit different

psychographic profiles, for that reason Coca Cola Company designed and made product which

are suitable for their personality.

a) Lifestyle

People exhibit many lifestyles than are suggested. People differ in attitudes,

interest, activities, and these affect the goods and services that they consume.

Coca-Cola presented products which are suitable for modern, busy life style

(shortage of time) and mobile generation.

b) Personality

Coca Cola is using personality variables to segment markets. They endow Coca-

Cola products with a “brand personality” that corresponds to a target consumer

personality.
  Behavioral segmentation

Under behavioral segmentation, Coca Cola buyers are divided into groups on the basis of their

knowledge of, attitude towards, use of, or response to a product. Many marketers believe that

behavioral variables such as occasions, benefits, user status, usage rate, loyalty status, buyer-

readiness stage, and attitude are the best starting points for the construction of market segments.

a) Occasions

Coca Cola customers/consumers can be distinguished according to the

occasions when they develop a need, purchase a product or use a product.

Occasions segmentation can help firms expand product usage.

b) Benefit sought

Sometimes, for the promotion strategy of Coke, Coca-Cola introduces prizes in

the top cover.

 Summary of market segmentation variables of Coke

Variable Typical breakdowns

Geographic - Countrywide distribution network

- Focus on urban and suburban areas

Demographic

Age Young people

Gender Both male and female customers

Family size Variety of packages for different family sizes

Psychographic

Social class All

Lifestyle Modern, busy life style, mobile generation

Personality Brand personality

Behavioral

Occasions When customers develop a need, purchase or use a product

Benefit sought Prizes on packages

TARGET MARKETS

The target market for Coca Cola is quite wide as it satisfies the needs for many different

consumers. This market is relatively large and is open to all genders, thereby allowing greater

product diversification.

Coke’s commercials and advertisements are basically based on young generations, so the

young generation is the main target market of Coke because they want to represent Coke with

the youth and energy but they also take the old people into consideration and take them as a

co-target market.

POSITIONING

Bottle Sizes:

The company offers their products in different bottle sizes which include:

• SSRB Standard Size Returnable Bottle

• PET 200ml, 600ml, 1.5 or 2 Liter Plastic Bottle

• CANS Tin Pack 330 ml

Packaging:

Coca cola products are available in different packaging:

• 24 Regular Bottle Shell.

• 6 Bottle Pack for PETs.

• 24 Cans in one crate.

 SMART OBJECTIVES COCA- COLA

Specific – Coca Cola’s immediate objective is to double their revenue by 2020. It is also

looking at offering products at maximum outlets, more suitably to be present universally at

each and every store in all part of the world, providing Low Caloric product formation to

meet the global health needs. We can see the same from our survey as well. People find Coke

unhealthy and find too much sugar in the product.

Measurable - Measure their annual revenue hoping that it would improve.

Achievable - They are achievable as it allows a reason for employees to be motivated and
know the result which is to impress customers.

Realistic - Their aims include incorporating their partners, customers and employees.

Time-Bound - Their aim is to successfully complete their vision by 2020.

 PRICING STRATEGY

Pricing strategy for a company is very important as unlike other P’s of a product, the pricing

affects the revenues and not the cost. It also helps to open avenues to advertising, marketing,

increasing market share etc. It relies heavily on external factors like price of raw materials,

target audience, competition etc.

Pricing strategy of Coca-Cola:

1. Cost based pricing:

Coke initially produced the first batch, decided the expenses for the (item costs,

capital expenses, and operational costs), set a price considering the cost of Coke and

lastly persuaded the customers to purchase the product. From that point, Coke utilized

market-entrance evaluating at its cost.

2. Market Penetration Pricing:

This category is divided into 3 different types of pricing strategies to attain maximum

market share:

 Segmented and differential pricing:

To attain maximum market share, coke has come up with various variants to

suit everyone’s needs and budgets. This ensures maximum audience coverage
 and market penetration.

 Promotional Pricing:

During festivals in India, Coca Cola decreases its rate upto 5 Rupees on 1.5

litre bottles to boost party/family sales. It gives the product a feeling of

criticalness and customers buy the item in view of the lower cost. Coca cola

organization offers motivations to middle men or retailers in way a that they

offer them free example and free purge bottles, by this these retailers push

their item in the market. This is also a reason why we see Coca Cola more

than it’s substitute, Pepsi.

 Psychological Pricing:

Coca-Cola utilizes the psychological estimating system for their Original Coke.

For example, the cost of a 2-liter bottle of Original Coke was $2.49. They set

the cost to end in 9, since this influences clients to think the cost is under $2.50

to avoid hurting the perceived value of the client.

3. Competition based Pricing (Competitive Pricing):

Pepsi Co's CEO: "The more successful they are, the sharper we have to be. If the

Coca Cola Company didn't exist, we'd pray for someone to invent them."

Pepsi and Coca-Cola are perfect substitutes therefore the change in price of one

directly impacts the price of the other. Due to the same fact, there have been multiple

price fights between the two leading to “Cola Wars” examples of which are below:

PEPSI: In 1994, Pepsi propelled the 500-ml bottle in at Rs.8 versus ThumsUp's that

was priced at Rs.9. It’s 1.5-liter container took after Coke into the commercial centre

at Rs. 30, when Coke was priced at Rs. 35. Pepsi raised the cost once utilization

balanced out, depending on the propensity to adjust at the absence of a cost

advantage. It proceeded to bring down the value.

COCA COLA: Initially Coke mimicked Pepsi by introducing 300 ml cans at an

invitation price of Rs.15 before raising it to Rs.18. When it realized that the brand did

not hold enough attraction to fork out a premium from the consumers, it introduced a

lower-priced, similar-sized version to gain consumers.

COCA COLA’S COMPETITIVE PRICE POSITIONING:

Coca Cola only uses lower price point to penetrate new markets that are especially

sensitive to price like rural markets in India and Pakistan. Coca Cola does that to face

the immediate competition and to raise brand awareness among the population. Once

it is strongly implemented, it repositions itself as “premium” compared to numerous

competitors (ex: Pepsi, Fanta etc), the brand has an image of bringing intangible
benefit in the consumer’s lifestyle, group affiliation, moment of joy & happiness…

but the marketing strategy still focuses on an affordable enjoyment of life.

HOW WELL ARE COMPETITVE PRODUCTS PERFORMING IN THE
MARKET?

Pepsi Red
Bull
Snapp
Dr. le
Pepper Sprite Mountain
Snapple Dew

1. PEPSI

One of the biggest and the closest competitor of Coke, Pepsi is often considered as a

substitute of coke. Pepsico was formed after the merger of Pepsi and Frito Lay in

1965. It comprises of 20 Billion Dollar brands in its product baggage.

 Net Revenue: 63.5 Billion Dollars

 Gross profit: 28.8 Billion Dollars

 Market share: 24.2%

2. RED BULL

Red Bull doesn’t have many an extremely large set of products in its portfolio. Red

Bull is a famous brand that sells across 171 countries and is now focussing on

expansion in US market as well.

 Net revenue: 62.82 Billion Euros

 No. of units sold: 6.3 Billion cans

 Gross profit: 10.3 Million Dollars

3. DR. PEPPER SNAPPLE

Pepper Snapple’s product portfolio has more than 50 different types. US is the biggest

market for this product. RC Cola and 7Up are its most famous brands working in

India. Dr. Pepper Snapple has made series of acquisitions in the last three years in

order to increase its customer base and business.

 Net Revenue: 6.4 Billion Dollars

 Market Share: 12%

4. SPRITE

Sprite, a drink from the Coca Cola house was originally started as a competitor to 7-

UP but it has actually acquired a large share in the soft drinks market. There are at

least 20 variations of Sprite and the biggest target market is the ‘teenagers’.

 Market Share: 15%

5. MOUNTAIN DEW

A carbonated drink that belongs the house of Pepsico, Mountain Dew is served in 40

different flavours. Mountain Dew has a line-up of its own which is known as

kickstart.

 Market share: 10%

Product Brand value (Mn $) Brand Value % Change

(2017-18) %

Coca Cola 67712 5

Diet Coke 12972 -5

Red Bull 10873 3

Pepsi 9318 -5

Nescafe 6676 18

Tropicana 5178 8

Fanta 4879 23

Sprite 4545 10

Gatorade 4115 10

Minute maid 2483 8

Mountain Dew 2331 -7

Diet Pepsi 2158 -3

Dr. Pepper 2115 -5

 OTHER BRANDS AND THEIR POSITIONING

Coca Cola is the largest soft drink brand in the world. The Chosen product, Coca Cola Coke,

has a high share in the market as compared to its competitor soft drink brands(43.1% as per

the market survey conducted).

Coke started to position itself as a thirst quenching, refreshing drink starting from tagline

“Delicious and Refreshing” in 1886 to “taste the feeling” in 2016 till present to instill the

feeling of optimism in its consumers , encouraging them to inspiration from every moments,

create some value from it and making a difference. It is positioned as a brand for all age

groups.

The different competitor brands and their positioning are seen as follows :

1. Pepsi- Fuelling youth passions like music, bollywood ,cricket and football and

through endorsements by Young celebrities like Virat Kohli, Deepika Padukone ,

Pepsi targets the young market that’s energetic and fun loving with its slogan “Oh Yes

Abhi” giving them a sense of adventure ,thrill and pursuing their passion.

2. Thums Up-Thums Up has invariably been about the bravery, the courageous

aspect and spirit of its drinkers, targeting young daring individuals.The tagline change

from ”Aj kuch toofani karte hian” to ‘Main Hoon Toofani’ builds on the power of ‘I’,

an uncompromising attitude towards achieving one’s goals. It positions itself as a

drink that instills in people a feeling of challenging themselves and unleashing their

true potential.
3. Mirinda- Mirinda targets all age groups and classes of people. Through its tagline

“Pagalpanti bhi zaroori hai” , it positions itself as a spontaneous, fun loving soft drink.

People who want to break free or like to have a madness streak in between their hectic

lives lookout for this drink.

4. 7Up- It is the oldest lemon-lime soda brand. Targeting all age groups, 7up positions

itself as the cool lemon drink that can be consumed at regular occasions or parties

with the tagline “mood ko do lemon ka lift”.

5. Mountain Dew- Mountain Dew positions itself as the fearless and adventourous

drink. “darr ke aage jeet hai” encourages its drinkers to overcome their fear and let

their rebellious nature be out in the open. Targeting young individuals from the upper

and middle class, it invites individuals with bold and undaunted nature.
 CONCLUSION

Coke has a Global reach in 200 countries. It's availability in all types of packages make its

availability at point of sales , even more convenient.

However incidents of presence of pesticides in coke in 2011 caused a big damage to the brand

name as a whole which reduced its market share a bit. However, the aggressive pricing

strategies of Coke helped them to regain its market share and be the market leaders again.

Current Market share: 33.7%

Brand Value : 67,712 mn Dollar

Percentage Change in Brand Value from 2017 to 18: 5 percent

From the survey also, we could see that most of the people prefer Coke over other drinks.