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Coca-Cola: Preparing for the Next 100 Years
- Format: Print
- | Language: English
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About The Author
Cynthia A. Montgomery
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Coca-Cola Marketing Case Study
From the star ‘Coca-Cola’ drink to Inca Kola in North and South America, Vita in Africa, and Thumbs up in India, The Coca-Cola Company owns a product portfolio of more than 3500 products . With the presence in more than 200 countries and the daily average servings to 1.9 billion people, Coca-Cola Company has been listed as the world’s most valuable brand with 94% of the world’s population recognizing the red and white Coca-Cola brand Logo . Moreover, 3.1% of all beverages consumed around the world are Coca-Cola products. All this because of its great marketing strategy which we’ll discuss in this article on Coca-Cola Marketing Strategy .
Coca-Cola –
- has a Market capitalization of $192.8 Billion (as of May 2016).
- had 53 years of consecutive annual dividend increases.
- with the revenue of over $44.29 billion, is not just a company but an ECONOMY.
The world knows and has tasted the coca cola products. In fact, out of the 55 billion servings of all kinds of beverages drunk each day (other than water), 1.7 billion are Coca-Cola trademarked/licensed drinks.
Marketing history
Market research in the beginning.
It all started 130 years ago, in 1886, when a Confederate colonel in the Civil War, John Pemberton, wanted to create his own version of coca wine (cola with alcohol and cocaine) and sent his nephew Lewis Newman to conduct a market research with the samples to a local pharmacy (Jacobs pharmacy). This wasn’t a new idea back then. The original idea of Coca wines was discovered by a Parisian chemist named Angelo Mariani.
Pemberton’s sample was sold for 5 cents a glass and the feedback of the customers was relayed to him by his nephew. Hence, by the end of the year, Pemberton was ready with a unique recipe that was tailored to the customers taste.
Marketing Strategy In The Beginning
Pemberton soon had to make it non-alcoholic because of the laws prevailing in Atlanta. Once the product was launched, it was marketed by Pemberton as a “Brain Tonic” and “temperance drink” (anti-alcohol), claiming that it cured headaches, anxiety, depression, indigestion, and addiction. Cocaine was removed from Coke in 1903.
The name and the original (current) Trademark logo was the idea of Pemberton’s accountant Frank Robinson, who designed the logo in his own writing. Not changing the logo till date is the best strategy adopted by Coca-cola.
Soon after the formula was sold to Asa G Candler (in 1889), who converted it into a soda drink, the real marketing began.
Candler was a marketer. He distributed thousands of complimentary coca-cola glass coupons, along with souvenir calendars, clocks, etc. all depicting the trademark and made sure that the coca cola trademark was visible everywhere .
He also painted the syrup barrels red to differentiate Coca-Cola from others.
Various syrup manufacturing plants outside Atlanta were opened and in 1895, Candler announced about Coca-Cola being drunk in every state & territory in the US.
The Idea Of The Bottle
During Candler’s era, Coca-Cola was sold only through soda fountains. But two innovative minds, Benjamin F. Thomas and Joseph B. Whitehead, secured from Candler exclusive rights (at just $1) for bottled coca cola sales.
But Coca-Cola was so famous in the US that it was subjected to imitations. Early advertising campaigns like “Demand the genuine” and “Accept no substitutes” helped the brand somewhat but there was a dire need to differentiate. Hence, in 1916, the unique bottle of Coca-Cola was designed by the Root Glass Company of Terre Haute, Indiana. The trademark bottle design hasn’t been changed until now.
Coca-Cola Worldwide
In 1919, Candler sold the company to Robert Woodruff whose aim was to make Coca-Cola available to anyone, anytime and anyplace. Bottling plants were set up all over the world & coca cola became first truly global brand.
Robert Woodruff had some other strategies too. He was focused on maintaining a standard of excellence as the company scaled. He wanted to position Coca-Cola as a premium product that was worthy of more attention than any of its competitors. And he succeeded in it. Coca-Cola grew rapidly throughout the world.
Coca-Cola Marketing Strategies
The worldwide popularity of Coca-Cola was a result of simple yet groundbreaking marketing strategies like –
Consistency
Consistency can be seen from the logo to the bottle design & the price of the drink (the price was 5 cents from 1886 to 1959). Coca-Cola has kept it simple with every slogan revolving around the two terms ‘Enjoy’ and ‘happiness’.
From the star bottle to the calendars, watches and other unrelated products, Candler started the trend to make Coca-Cola visible everywhere. The company has followed the same branding strategy till now. Coca-Cola is everywhere and hence has the world’s most renowned logo.
Positioning
Coca-Cola didn’t position itself as a product. It was and it is an ‘Experience’ of happiness and joy.
Franchise model
The bottling rights were sold to different local entrepreneurs , which is continued till now. Hence, Coca-cola isn’t one giant company, it’s a system of many small companies reporting to one giant company.
Personalization & Socialization
Unlike other big companies, Coca-Cola has maintained its positioning as a social brand. It talks to the users. Coca-Cola isn’t a company anymore. It’s a part of us now. With its iconic advertising ideas which include “I’d Like to Buy the World a Coke” & “Share a Coke”, it has maintained a special spot in the heart of its users.
Diversification
Coca-Cola, after marking its presence all over the world, took its first step towards diversifying its portfolio in 1960 by buying Minute Maid. It now operates in all but 2 countries worldwide with a portfolio of more than 3500 brands.
Coca-Cola Marketing Facts
- Logo & bottle design hasn’t changed since the start.
- During its first year, Coca-Cola sold an average of 9 drinks a day.
- Norman Rockwell created art for Coke ads.
- Coke has had a huge role in shaping our image of Santa Clause.
- In the 1980s, the company attempted a “Coke in the Morning” campaign to try to win over coffee drinkers.
- In 1923, the company began selling bottles in packages of six, which became common practice in the beverage industry.
- Recently, it was in the news that Verizon acquired Yahoo for around $5 billion which is more or less the same amount the Coca-Cola Company spends on its advertisements.
- The number of employees working with the Coca-Cola Company (123,200 to be exact) is more than the population of many countries.
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Did we miss something? Come on! Tell us what you think about Coca Cola Marketing Case Study in the comment section.
A startup consultant, digital marketer, traveller, and philomath. Aashish has worked with over 20 startups and successfully helped them ideate, raise money, and succeed. When not working, he can be found hiking, camping, and stargazing.
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Global Business Strategy: A case study of Coca-Cola Company
This paper focuses on global business strategy of Coca-Cola Company. The first part of the paper concentrate on the internal and external analysis of the company in the international business environment as well as the extent of globalisation on the company with a detailed report on different organisational structure being implemented on an international scale. The second part of the paper explicitly congregate issues on Corporate Social Responsibility on organisations operating internationally with regards to moral and ethical issues, conflicts between social responsibilities and ethical issues and regulations/guidance as regards to social responsibilities with emphasis on Coca-Cola company.
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Table of Contents
Coca-cola target audience , geographical segmentation , coca-cola marketing channels, coca-cola marketing strategy , coca-cola marketing strategy 2024: a case study.
Become an AI-powered Digital Marketing Expert
Coca-cola has colossal brand recognition as it targets every customer in the market. Its perfect marketing segmentation is a major reason behind its success.
- Firstly, the company targets young people between 10 and 35. They use celebrities in their advertisements to attract them and arrange campaigns in universities, schools, and colleges.
- They also target middle-aged and older adults who are diet conscious or diabetic by offering diet coke.
Income and Family Size
It introduces packaging and sizes priced at various levels to increase affordability and target students, middle class, and low-income families and individuals.
Coca-Cola sells its products globally and targets different cultures, customs, and climates. For instance, in America, it is liked by older people too. So, the company targets different segments. It also varies the change accordingly, like the Asian version is sweeter than other countries.
Coca-Cola targets individuals as per their gender. For example, Coca-Cola light is preferred by females, while coke zero and thumbs up are men's favorite due to their strong taste.
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Coca-Cola initially employed an undifferentiated targeting strategy. In recent times, it has started localizing its products for better acceptability. It incorporates two basic marketing channels : Personal and Non-personal.
Personal channels include direct communication with the audience. Non-personal marketing channels include both online and offline media, such as
- Promotion Campaigns
- PR activities
Social Media
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A uniquely formulated Coca Cola marketing strategy is behind the company's international reach and widespread popularity. The strategy can be broken down into the following:
Product strategy
Coca-cola has approximately 500 products. Its soft drinks are offered globally, and its product strategy includes a marketing mix. Its beverages like Coca-Cola, Minute Maid, Diet Coke, Light, Coca-Cola Life, Coca-Cola Zero, Sprite Fanta, and more are sold in various sizes and packaging. They contribute a significant share and generate enormous profits.
Coca-Cola Products
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Pricing Strategy
Coca-Cola's price remained fixed for approximately 73 years at five cents. The company had to make its pricing strategy flexible with the increased competition with competitors like Pepsi. It doesn't drop its price significantly, nor does it increase the price unreasonably, as this would lead to consumers doubting the product quality and switching to the alternative.
Place Strategy
Coca-cola has a vast distribution network. It has six operating regions: North America, Latin America, Africa, Europe, the Pacific, and Eurasia. The company's bottling partners manufacture, package, and ship to the agents. The agents then transport the products by road to the stockist, then to distributors, to retailers, and finally to the customer. Coca-Cola also has an extensive reverse supply chain network to collect leftover glass bottles for reuse. Thus, saving costs and resources.
Coca-Cola’s Global Marketing
Promotion Strategy
Coca-Cola employs different promotional and marketing strategies to survive the intense competition in the market. It spends up to $4 million annually to promote its brand , utilizing both traditional and international mediums for advertisements.
Classic Bottle, Font, and Logo
Coca-Cola organized a global contest to design the bottle. The contest winner used the cocoa pod's design, and the company used the same for promoting its shape and logo. Its logo, written in Spencerian script, differentiates it from its competitors. The way Coca-cola uses its logo in its marketing strategy ensures its imprint on consumers' minds.
Coca-Cola’s Gripping Advertisements
Localized Positioning
The recent 'Share a coke' campaign, launched in 2018 in almost fifty countries, has been quite a success. The images of celebrities of that region and messages according to the local language and culture of the area target the local market.
Coca-Cola Advertisement Featuring Celebrities
Sponsorships
The company is a well-recognized brand for its sponsorships, including American Idol, the NASCAR, Olympic Games, and many more. Since the 1928 Olympic Games, Coca-Cola has partnered on each event, helping athletes, officials and fans worldwide.
Coca-Cola as Official Olympics Partner
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With technological advancement, social media and online communication channels have become the most significant part of the Coca-Cola marketing strategy. It actively uses online digital marketing platforms like Facebook , Twitter, Instagram, YouTube, and Snapchat to post images, videos, and more. The Coca Cola marketing strategy primarily includes SEO , email marketing , content marketing , and video marketing .
Coca-Cola’s Instagram Posts
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Case Study Of Coca-Cola: What Led To Its Success?
Aashita Singh
Updated on: August 23, 2023
In a world brimming with countless beverages, one name stands tall – Coca-Cola. This fizzy elixir has captured the hearts and palates of billions around the globe, becoming a symbol of refreshment, happiness, and, of course, capitalism. The story of Coca-Cola is not just a tale of sweet bubbles, it’s a narrative of resilience, innovation, and the ability to adapt to the ever-changing tastes of consumers. So let’s pop the top and delve into the remarkable case study of Coca-Cola and what led to its success, and the hurdles it has faced.
Coca-Cola’s Profile:
The year was 1886, and the place was Atlanta, Georgia, where the Coca-Cola saga begins with Dr. John S. Pemberton , a pharmacist with a penchant for experimentation. In the heart of his laboratory, he mixed together a curious blend of coca leaf extract and kola nut, creating a syrupy concoction that he believed had medicinal properties. This brew, initially intended as a patent medicine to soothe headaches and fatigue. But, later on it was mixed with carbonated water to create a fizzy drink. It was first sold at Jacob’s Pharmacy on May 8, 1886.
It was Frank M. Robinson , Dr. Pemberton’s bookkeeper, who gave the concoction its iconic name. He played a pivotal role in the brand’s early history by suggesting the name Coca-Cola and designing the now-famous logo.
- He believed that “Coca-Cola” conveyed a sense of euphony and captured the drink’s two main ingredients.
- He even penned the flowing script of the Coca-Cola logo that remains an indelible part of the brand’s identity.
Coca-Cola Case Study to Rise to Prominence:
Despite Pemberton’s vision, financial difficulties led to the sale of Coca-Cola formula in 1887 for a mere $2,300.
Its key points:
- Asa Griggs Candler , a visionary businessman, acquired the rights to Coca-Cola and embarked on a mission to make it a national sensation.
- His aggressive marketing tactics and bold advertising campaigns set the stage for Coca-Cola’s expansion.
- In 1894, Candler incorporated The Coca-Cola Company and pushed it for widespread distribution.
- Soon, the beverage was available in every U.S state, solidifying its position as an American favorite.
- Its sales increased by a phenomenal percentage because of Candler efforts.
- The evolution of Coca-Cola would not be complete without mentioning the groundbreaking contour bottle, introduced in 1915.
- It is said to be the stroke of genius – the contour bottle.
- Designed to be distinctively recognizable even in the dark or shattered into pieces.
- This bottle not only protected the secret formula but also became a symbol of Coca-Cola’s commitment to quality.
- This curvaceous bottle not only protected the secret formula of the brand itself.
- This distinctive packaging contributed to Coca-Cola’s worldwide recognition.
NOTE: We have detailed article about various functions of packaging ! Do check that out!!
In 1919, Ernest Woodruff bought up the company. Thereafter, Ernest’s sons continued to run the company until they transformed it into an international brand. The company was officially listed on the New York stock exchange in 1919 under the symbol KO.
Coca-Cola’s study to International Expansion:
- With success at home! Coca-Cola set its sights on global domination. During World War II, the company provided American troops with Coca-Cola, using slogans like “The pause that refreshes” to boost morale.
- After the war, international expansion continued, with bottling plants established worldwide.
- The introduction of Coca-Cola during the war created its demand in the international market.
- After that, Coca-Cola began establishing its partnerships with distributors and bottling companies all around the world.
- At present, the company operates and works in more than 200 countries and territories.
- Coca-Cola was launched in India in 1956, with the slogan “Refresh Yourself”.
Some key points of Coca-Cola Case Study:
- The company brand value was estimated at $97.9 billion in 2022.
- The brand logo can be recognized by 93% of the global population.
- For advertisement the company has used $ 4 billion annually for advertising, between the years 2015 to 2021, except for the year 2020 (due to pandemic).
- The company is recorded to have 225 bottling partners and 900 bottling plants globally.
- The brand employs around 700,000 employees.
- The company is recorded to have the same price between the years 1856-1959, at 5 cents.
- Offers beverage options of beverage to more than 200 brands to consumers worldwide.
- Partners with 24 million retail customer outlets.
- Company has a profile that includes $ 21 million brands.
- In 2022, Coca-Cola was the most valuable brand in the non-alcoholic area globally at $ 35.4 billion
Who Owns Coca-Cola?
There are various shareholders holding shares in the company.
Coco-Cola is a public listed company.
But the topmost are – Berkshire Hathaway, The Vanguard Group, BlackRock. However, the largest share of the brand company is said to be of Warren Buffett.
- Vanguard holding 8.16%
- Berkshire holding 9.25%
- BlackRock holding 4.58%
- Warren Buffett holding 9.30%
NOTE: You can our other success stories of business like Ola Case Study !
Coca-Cola’s Growth Strategy:
In the competitive landscape of the global beverage industry, Coca-Cola has managed to maintain its position as a market leader for over a century. let’s see one another part of Case Study of Coca-Cola-
Ever wonder how it has achieved such remarkable and enduring growth?
Let’s delve into Case Study of Coca-Cola’s growth strategy:
- Product Diversification: One of Coca-Cola’s core strategies for growth is product diversification. While Coca-Cola classic remains the flagship product, the company has expanded its portfolio to cater to changing consumer preferences. This includes offerings like Diet Coke, Coca-Cola Zero Sugar, and an array of flavored and non-carbonated beverages such as water, juices, and teas.
- Developed market focus: Coca-Cola has identified the importance of growing developing markets. Coco-Cola’s 70% of all beverages which are commercialized are being consumed in the developed world as compared to the developing world which is 30%.
- Global Expansion: Coca-Cola’s global reach is a testament to its growth strategy. With operations in over 200 countries, the company has successfully expanded its footprint worldwide. It tailors its product to local tastes and preferences, ensuring relevance in diverse markets. Local partnerships and distribution networks are key components of this strategy, allowing Coca-Cola to penetrate even the most remote corners of the globe.
- Innovation and New markets: innovation is at the heart of Coca-Cola’s growth strategy. The company continually invests in research and development to create new beverages and packaging solutions. An example of this is the introduction of smaller-sized cans and bottles to address consumer health concerns about portion control and health.
- Branding and Marketing: Coca-Cola’s branding and marketing efforts are legendary. The company consistently runs high-impact advertising campaigns, often featuring celebrities and memorable slogans. Its marketing goes beyond mere product promotion, it aims to create emotional connections with consumers. For example, Share Coke Campaign.
- Sustainability and Corporate responsibility: Sustainability has become a vital component of Coca-Cola’s growth strategy. The company realized the importance of environmental and social responsibility. Started taking Initiatives such as reducing water usage, recycling programs, and commitments. Which contributes to their sustainable sourcing of ingredients to its long-term growth plans.
7. Strategic Partnerships: Coca-Cola strategically partners with various organizations and events to enhance its visibility and association with positive experiences. Sponsorships of major sports leagues, music festivals, and cultural events create opportunities for brand exposure and engagement with consumers.
Some memorable marketing campaigns of Coca-Cola that led to its success:
When it comes to marketing mastery, few brands can rival Coca-Cola. Over the years, this iconic beverage company has crafted some of the world’s most memorable and emotionally resonant advertising campaigns.
Some of them are:
- Share a Coke (2011) : It was a stroke of genius. Personalization of packaging was a popular marketing tactic of Coca Cola. It personalized its bottles and cans by printing the common names of individuals. The company encouraged people to find their names on the bottles. Also, it asked people to share the bottle or can of coke with their friends or family members.
- Taste the Feeling (2016) : It featured simple, relatable moments of people enjoying Coca-Cola and emphasized that the drink was for everyone, for every feeling, and for every day. The campaign included coke, diet coke and zero sugar coke.
- Thanda matlab Coca-Cola (2003): Aiming at the idea of refreshing drinks or Thanda, the campaign focuses its attention to local markets to win the people’s trust in the country. They made Coca-Cola and Thanda synonyms of each other.
- Open Happiness: In 2009, Coca-Cola introduced the “Open Happiness” campaign, this optimistic and cheerful message encouraged people to find happiness in the little moments and share them with others. The campaign included a variety of feel-good ads, catchy jingles, and interactive marketing initiatives, inviting consumers to be part of the happiness movement.
Case Study of Coca-Cola : How Coca-Cola makes money?
Coca-Cola, the world’s most iconic beverage, has a recipe for success that extends far beyond its secret formula. Its ability to generate substantial revenue is a testament to its diverse income streams and strategic business model.
Some of them are :
Core product sales: At its heart, Coca-Cola generates a significant portion of its revenue from the sales of its core products, including Coca-Cola zero sugar, and various flavored variants.
Diversified beverage portfolio: Coca-Cola isn’t just about cola anymore. The company has diversified its product portfolio to include a wide range of beverages, catering to diverse consumer tastes.
Non-Alcoholic ready-to-drink coffee: Coca-Cola has also ventured into the thriving market of non-alcoholic ready-to-drink coffee. With acquisitions like Costa Coffee and brands like Georgia Coffee, it has tapped into the caffeine cravings of consumers worldwide.
Partnerships and Licensing: Coca-Cola earns revenue through partnerships and licensing agreements. For example, it collaborates with other companies to produce co-branded products, like Coca-Cola with coffee, and it licenses its brand for use in various merchandise, from apparel to collectibles.
Sponsorships and Marketing Campaigns: Coca-Cola invests heavily in sponsorships of major events, sports leagues, and cultural activities. These partnerships provide brand exposure and promotional opportunities, driving consumer engagement and sales. The company’s marketing campaigns, often featuring celebrities and memorable commercials, also contributes to its revenue.
Challenges to Coca-Cola Success:
Coca-Cola, the behemoth of the beverage industry, is no stranger to challenges, despite its remarkable success. It faced numerous challenges that ranged from the preferences of consumers and concerns related to the environment.
Let’s explore the hurdles this iconic company faces on its path to sustained prosperity.
- Health and Wellness concerns: One of the most significant challenges Coca-Cola faces is the shift in consumer attitudes towards health and wellness. With growing awareness about the health risks associated with excessive sugar consumption, sales of sugary carbonated beverages like Coca-Cola classic have been under pressure.
- Sugar and Obesity: Linked to health concerns is the ongoing controversy surrounding the role of sugary beverages in the obesity epidemic. Coca-Cola, along with other soda manufacturers, has faced legal battles, health advocacy campaigns, and regulatory pressures. Responding to this challenge Coca-Cola has introduced low-calorie and reduced-sugar alternatives and actively participates in public health discussions.
- Changing consumer preferences: The ever-evolving consumer preferences pose a constant challenge. The desire for diverse and unique flavors, healthier options, and transparency in ingredient sourcing requires Coca-Cola to innovate continually.
- Competition in the beverage market: The beverage landscape is highly competitive, with numerous players vying for consumer attention. Coca-Cola competes not only with traditional rivals like PepsiCo but also faces competition from emerging beverage categories like energy drinks, ready-to-drink coffee, and plant-based beverages.
- Supply chain disruptions: Disruptions in the supply chain, whether due to natural disasters, pandemics, or other unforeseen events, can disrupt production and distribution. These disruptions may lead to temporary shortages or increased costs.
- Competition: The most prominent challenger to Coca-Cola’s throne is none other than PepsiCo and ThumbsUp. The rivalry between Coca-Cola and PepsiCo, often referred to as the “Cola Wars” is legendary. PepsiCo’s flagship product, Pepsi, competes head-to-head with Coca-Cola Classic. Both brands engage in intense marketing campaigns and strategic pricing to win the favor of consumers.
Future plans of Coca-Cola :
In a world of evolving tastes, shifting consumer preferences, and increasing environmental consciousness, Coca-Cola, the global beverage behemoth, is setting its sights on the future. Coca-Cola is planning to take a dynamic approach in marketing investment.
Coca-Cola’s future plans are a blend of sustainability, diversification, digital engagement, innovation, and a relentless focus on the consumer. As the world of beverages evolves, Coca-Cola is determined to stay ahead of the curve, refreshing not only the taste buds, but also the expectations for a more sustainable beverage experience.
The future, it seems, is bubbling with excitement for Coca-Cola.
Conclusion :
The Coca-Cola success story is a testament to the power of innovation, branding, and adaptability. It has conquered challenges, embraced change, and remained a symbol of joy for generations. The world may evolve, but the timeless allure of a Coke and a smile endures. By staying true to its core values while embracing change, Coca-Cola continues to fizz its way to the top.
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16 Coca-Cola: ‘Taste the Controversy’: A Case Study on Marketing Challenges
- Published: June 2022
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The not so lucky situations and criticism of the Coca-Cola brand come from its first-ever product. As the history from many sources says, Dr John Smith-Pemberton, Coca-Cola creator, fought in the Civil War, and had some injuries. He made a special formula in order to help him deal with the constant pain in his body: the Pemberton’s French Wine Coca which also had a great taste at the time, had alcohol in it. It quickly became very popular until a vote by the state legislature Atlanta and Fulton County in favour of the national temperance movement. The national temperance movement prohibited the use of alcohol and heavily criticized medicinal wine such as French Wine Coca. Pemberton was forced to drop the wine ingredient in his French Wine Coca. After some further experimenting, he decided on the use of sugar syrup as a substitution for the wine and that is when Coca-Cola was born. He invented many drugs, but none of them ever made any money. So, after a move to Atlanta, Pemberton decided to try his hand in the beverage market. In his time, the soda fountain was rising in popularity as a social gathering spot. Temperance was keeping patrons out of bars, so making a soda-fountain drink just made sense. And this was when Coca-Cola was born.
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Case study: How does Coca-Cola do it in the digital world?
Coca-Cola is undoubtedly one of the most recognized brands in the world, with a market presence that dates back to its beginnings in 1886 when John Pemberton served the first Coca-Cola. Today, the Coca-Cola Company sells hundreds of beverage brands in more than 200 countries. It is calculated that the average person consumes approximately 275 cans of Coca-Cola annually in the United States alone.
- The digital challenge for Coca-Cola and the "Share a Coke" campaign is a success story.
- The digital challenge for Coca-Cola.
The digital challenge for Coca-Cola
The challenge for companies like Coca-Cola is that their products' brand presence and positioning are no longer the main issues; instead, they look at marketing strategies oriented toward connection, loyalty, and innovation with their consumers. All this is what James Sommerville, VP of Global Design of Coca-Cola Company, commented for Adobe Summit: We are a 130+-year-old brand that has always been in the experience business. An ice-cold Coke, ice, and lemon in a big glass, there's a fizz and a tingle when you drink it, and that's all very sensory, so we still believe in a physical analog world, which is at the heart and soul of our product, but at the same time, we want to transfer and transform our business, to be able to deliver that experience on a digital platform. The important thing for brands today is to listen to the consumer. Coca-Cola sells almost 2 billion servings daily, and one of the goals we would like to achieve is 2 billion daily conversations. Two-way conversations so that we not only provide the perfect beverage at the moment they need it but also digital interaction with the customer. For a company like Coca-Cola that handles large volumes of consumers, regions, products, and channels, it is challenging to have the right platforms to organize communication strategies and effectively serve their customers. Here is where Coca-Cola has developed multiple communication, promotion, and loyalty programs, through digital platforms such as mobile applications, eCommerce B2B / B2C, production of enterprise digital content, and even the creation of the first Coca-Cola flavor in the metaverse. The "Share a Coke" campaign is a case of success.
Let's examine one example to understand how Coca-Cola uses technology to connect with its consumers. Many will remember the "Share a Coke" campaign in which the logo on the can was replaced with famous names, encouraging customers to share a Coke with a friend or family member. This massively successful social marketing campaign underpinned its process with two main elements to achieve the digital rollout.
The first element was the Customer Experience Management platform, which is necessary to manage the campaign data:
- Segmentation
- Customer profiling
- Identity management
- AI-powered learning
- Creation of customer experience applications
The Adobe Experience Platform is the foundation that helps companies like Coca-Cola develop a robust foundation for delivering the right experiences to consumers across all channels. >> Case study: Starbucks success with the Inbound Marketing methodology<<
The management of digital assets in this Coca-Cola campaign was also an important task to solve, with crucial aspects such as:
- Personalized and consistent content for each profile
- Content suitable for each channel/profile
- Automation rules to be able to scale with minimum effort
- Ease of creating, distributing, and optimizing experiences on a large scale.
All of this may seem like a Herculean task. Still, it is with the help of specialized platforms that companies like Coca-Cola manage to implement these initiatives and achieve their objectives.
The second element is the Marketing Automation tool, required for a campaign that reached in the beginning alone more than 550 million personalized Coca-Cola, around 340,000 posts on Instagram with the hashtag #shareacoke, and a result by consumers of 96% with positive or neutral feelings towards the campaign.
All this is possible thanks to marketing automation platforms, where Marketo is a fundamental pillar to achieving engagement with customers throughout the customer lifecycle and delighting them to keep them as buyers and brand advocates.
Marketo Engage's always-on marketing principle was able to support Coca-Cola in automating the indispensable aspects of campaigns like this one: >> Main Advantages of Marketo<<
- Audience segmentation : Profiling communications consider behavioral, demographic, and channel data.
- Multichannel personalization : Tailored landing pages with conversion-oriented forms for customers receiving profiled communications from websites, emails, SMS, social networks, and events.
- Customer scoring (lead scoring) : Used this to determine the level of interest of each customer and drive the level of engagement at each stage of the funnel.
- Active marketing activities : Respond on time to a large contact base. Used automation to respond in real-time when a consumer activates a CTA, sending personalized content.
- Performance per campaign : Measuring performance in terms of ROI, revenue, investment, and funnel stage allows us to determine which investments yield the best returns.
Related blog: Case study: Panasonic and its growth with Marketo .
We see how in an increasingly digital world, the challenge for many companies, like Coca-Cola, is how to replicate the physical experience of their products in the digital arena.
Here is where marketing efforts have to lead to the digitization of the experience, where digital processes, strategies, technology, and the consumer as the center of the digital ecosystem must converge.
Finally, the secret ingredient of any digital initiative that Coca-Cola has been developing is innovation in a Customer Experience that moves a consumer thirsty for new and better experiences.
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Coca-Cola CRM Case Study: The Untold Story
- Category : Case Studies
- Last updated on June 3, 2023
- By Viktor. A
- One Comment
Coca-cola’ customer relationship management (CRM) strategy is at the core of their phenomenon growth. Established in May 8, 1886, by Dr John Pemberton, who later sold the business to Asa Griggs Candler, and a few others. Today the story is different, as Coca-Cola currently ranks as the 6th most powerful brand in the world.
The success of the company is mainly from its customer relationship management process. Instead of focusing on the product, they leveraged on CRM strategies to launch series of innovative personalized marketing campaigns.
Coca-cola is big on marketing and customer-centric adverts. They spend a lot of money on advertisements and R&D. Today, the company spends about 10 percent of its revenue on advertising and marketing, approximately $4 billion annually.
In this article, you’ll learn about the Coca-Cola CRM case study, and other strategies that made them super successful.
Coca-Cola became America’s leading beverage brand and a lot of that had to do with the marketing, which was genius and ahead of the game. – Dr. Sydnee Mcelroy
Coca-Cola Timeline
1886: Dr John Pemberton served the world’s first Coca‑Cola at Jacobs Pharmacy in Atlanta, Ga.
1888: Before his death, he sold his business to Asa G. Candler.
1899: Two Chattanooga lawyers, Joseph Whitehead and Benjamin Thomas, travelled to Atlanta to negotiate the rights to bottle Coca‑Cola.
1906: The Coca‑Cola Company introduced a diamond-shaped label with a colourful trademark to stand out from the infringers.
1915: The Trustees of the Coca‑Cola Bottling Association voted to expend up to $500 to develop a distinctive bottle for Coca‑Cola.
1917: The Coca‑Cola Company began its partnership with The Red Cross.
1935: Lettie Pate Evans joined the Board of Directors as the 1st woman to serve on the board of a major company.
1963: The Coca‑Cola Company produced its first diet drink, Tab. Tab was introduced before the early growth of the low-calorie soft drink segment.
1966: The Coca‑Cola Company launched “The Nutrition Project”, assigning an international team of scientists and food technologists the task of finding a solution to the “protein gap” facing the world’s impoverished nations.
2001: The Coca‑Cola Company established the Coca‑Cola Africa Foundation, which has worked to prevent and treat HIV/AIDS in Africa.
2007: The Coca‑Cola Company announced a transformational partnership with the World Wide Fund for Nature (WWF) to address challenges related to freshwater conservation.
2009: The Coca‑Cola Company introduced PlantBottle Packaging – the first ever recyclable PET plastic beverage bottle made 30 per cent from plants.
2010: The Coca‑Cola Company launched the 5by20 Initiative. This Initiative aims to enable the economic empowerment of 5 million women entrepreneurs across the globe by 2020.
2013: The first EKOCENTER is established. EKOCENTER is a modular community market run by local women entrepreneurs and provides safe drinking water, wireless communication, electricity, and other functionality to jump-start entrepreneurship opportunities.
Coca-Cola CRM Case Study: Top Ways Coca-cola Uses CRM
1. identifying their target customers:.
Coca-cola targets every customer in the market, making sure that the refreshing needs of everyone are met. Coca-cola’s targets are based on age, income, family size, gender, and geographical segmentation.
Age : The company arranges campaigns in schools to target young people between 10 and 35. They target middle-aged and older adults who are diet conscious by offering Diet Coke.
Income : Coca-cola targets its customer’s income by introducing packaging at different price ranges to increase affordability.
Family Size : They introduce packaging in different sizes, from the biggest to the smallest. Large families can get the biggest size and share it with the whole family.
Gender : They also target customers based on gender. For example, Coca-Cola Light is preferred by females, while Coke Zero and thumbs up are men’s favourites due to their strong taste.
Geographical segmentation : Coca-Cola sells its products globally and targets different cultures, customs, and climates. For instance, the Asian version is sweeter than other countries.
2. Understanding their customers’ needs and wants
Coca-cola understands that without attentive listening, patience, and clarity, it will be very difficult for them to identify the needs of their customers.
- They listen attentively to hear what their customers want.
- They are always patient to understand their pain point.
- Coca-cola makes sure they communicate with sincerity and speak in a way they will understand by avoiding technical jargon.
How Coca-cola Identifies Customers’ Needs
- Coca-Cola brought a new innovative vending machine with a fountain dispenser called Freestyle. In this, the customer can customize their drink from 100 combinations, and this was the first time they could have provided 100 combinations that were not introduced before. The most important thing about the freestyle vending machine is that it is connected to the SAP system. So it collects all the customer data and is stored in the CRM system.
- Coca-cola usually conducts surveys by using email marketing software. With Email marketing software , they could section their ideal customers based on a particular purchasing style. They were also able to get a list of positive reviews from some of your most of their loyal customers.
- They use the insights obtained from surveys to create buyer personas . So that all their marketing activities are geared toward serving their customers and products tailored to their needs.
- Coca-cola has multiple layers of communication methods across all its platforms. And their customer care team is well-imbibed with the right customer care etiquette. This quality service helps their customers to share their opinions about the product.
3. Customer Loyalty
Coca-Cola has started a new marketing environment by providing a unique PIN in the bottle, which can be used to save 75 cents on the mobile bill. They can also gain points for Coke from this system. So this is one of the best marketing techniques to gain customers by giving offers to their daily use products.
4. Direct store delivery
For adequate satisfaction of its customers, the company implemented the formula of DSD (Direct Store Delivery). This is to sustain smooth relations with local bottlers and stores. DSD collects the customer data and transfers it to the distributors. It helps in improving the delivery costs.
The customer data obtained helped Coca-Cola successfully satisfy its customers’ demands.
What CRM does Coca Cola Use?
The CRM technology Coca-Cola uses is SAP (System Applications and Products) Strategic Enterprise Management. Coca-Cola started using this CRM tool in the year 2009 and continues to use it to date. This CRM system helps Coca-cola stay connected to customers, streamline processes, and improve profitability.
SalesForce is another CRM that has contributed to the growth of Coca-cola.
SalesForce is a cloud computing CRM software and is currently used by Coca-Cola. It takes the help of the mobile app developed on the SalesForce platform. It has massively supported the technicians and repair department at Coca-Cola.
Apart from SAP and SalesForce CRM, the CRMs listed below are widely known to automate marketing processes and help strengthen customer relationships. They include:
Freshsales automates your sales process, and helps drives sustainable business growth.
A sales-focused CRM that leverages AI to automate sales, lead & demand generation.
Customize your workflows to track all aspects of the sales cycle, from lead gen to post-sale support.
Wrapping it up
Human connection is an important part of the company’s brand message. Coca-cola understands how essential customer relationships are in business. So they embrace it so tightly by implementing different strategies to meet their customers’ needs.
They also use SAP and SalesForce CRM software to strengthen the relationship with their customers automatically. As a business owner, you can still learn from them and implement these strategies in your little way.
Frequently Asked Questions
How does coca-cola build customer relationships.
Coca-cola has multiple layers of communication methods across all its platforms. Their customers can share their opinions and receive an immediate response from these platforms.
When audiences know a brand is loyal to them — responding quickly to customer service needs, providing value, and are experts in that field— They may consistently choose you over the competition and are more likely to become brand advocates in the long run.
Secondly, Coca-Cola uses touching messages about family and friends to advertise its beverages. The bottles say, “When you share a Coke with someone special, you must share it with them.” The consumer’s emotions when purchasing a Coke become more vivid as the product becomes more appealing.
How does Coca-Cola use CRM systems?
Coca-cola integrated its SalesForce CRM system with ERP (enterprise resource planning) to coordinate better the various departments and stages involved in the sales process. Coca-cola leverages CRM data to develop a pull-production system that aligns production and inventory with demand to slash inventory waste.
Coca-Cola Bottlers has recently agreed with SAP’s blockchain platform to streamline franchise relationships across its 70 bottling companies.
What are the advantages of CRM to Coca-Cola?
With the help of CRM, Coca-cola was able to;
- Keep track of customer contact information, preferences, and purchase history. This information is used to improve customer service and target marketing efforts.
- Track and manage sales leads.
- Ensured that their customers receive the best possible service.
- The CRM aids in advancing existing processes and improving new ones to meet the customer’s needs. As a result, sales have increased, and customer retention has improved.
Which CRM system does Coca-Cola use?
Coca-Cola uses is SAP (System Applications and Products) Strategic Enterprise Management. Coca-Cola started using this CRM tool in the year 2009 and continues to use it to date. This CRM system helps Coca-cola stay connected to customers, streamline processes, and improve profitability.
Viktor. A is a writer and researcher with experience writing about various topics, including CRM software, SaaS, finance, and technology. When he's not writing, he's swimming and travelling
This information is well done. I am presently investigating the CRM system to implement in a business I’m about to start.
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