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Global reach and objectives of Coca Cola

Paper Type: Free Essay Subject: Marketing
Wordcount: 3326 words Published: 4th May 2017

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The Coca Cola Company is the most biggest and strongest in the soft drink industry and the key to this project is to understand the marketing contributions which lead to this success of Coca Cola. Since the beginning of the company, Coke has become the main heart beat for the soft drink lovers. The product is mainly known for its cola flavoring and is loved by mainly around the world. But the question that would arise is that how does one make a strong as product as Coca Cola? Mainly, how can one make a strong as brand name as Coca Cola? Its questions like these and many more that we try to solve in this marketing project.

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We first start off by talking about the global reach of Coca Cola. The geographical spread of Coke and then even the strive against fierce and ferocious competition provided by Pepsi to Coca Cola. We discuss the PEST analysis, which help us understand how Coca Cola deals with its environment. The company and its history are also discussed. We try and show the market share and revenues of Coca Cola of over the recent years. Along with that is the SWOT analysis. Some different marketing theories like targeting and segmentation are included. The project explains the growth and the growth strategy of Coca Cola. The marketing mix shows that development of the company and the method of achieve success that the company had used.

The ultimate objectives of our business strategy are to increase volume, expand our share of worldwide nonalcoholic ready to drink beverages sales, maximize our long-term cash flows, and create economic value added by improving economic profit. The Coca Cola system has more than 16 million customers around the world that sells or serves our products directly to consumers. We keenly focus on enhancing value for these customers and helping them grow their beverage businesses. We strive to understand each customer’s business and needs, whether that customer is a sophisticated retailer in a developed market a kiosk owner in an emerging market.

There are nearly 6 million people in the world who are potential consumers of our company’s product. Ultimately, our success in achieving our mission depends on our ability to satisfy more of their beverage consumption demands and our ability to add value for customers. We achieve this when we place the right products in the right markets at the right time.


Introducing Coca Cola could be an easy task for any individual born in the 19th century. Coca Cola is most famous carbonated soft drink sold around the world for more than 100 years now. It is sold in the stores, restaurants, and vending machines of more than 200 countries. Its famous cola flavor is still loved by many and has been since 1889, when it was first introduced to the world. Originally intended as a patent medicine when it was invented in the late 19th century by John Pemberton, Coca-Cola was bought out by businessman Asa Griggs Candler, whose marketing tactics and strategies led Coke to its dominance of the world soft-drink market right through the 20th century. So in this project, we shall find out what kind of marketing excellence does one require dominating the world and making its product the apex of a certain industry

The Coca-Cola Company traces it’s beginning to 1886, when an Atlanta pharmacist, Dr. John Pemberton, began to produce Coca-Cola syrup for sale in fountain drinks. However the bottling business began in 1899 when two Chattanooga businessmen, Benjamin F. Thomas and Joseph B. Whitehead, secured the absolute rights to bottle and sell Coca-Cola for the majority of the United States from The Coca-Cola Company. In 1899, Benjamin Thomas and Joseph Whitehead traveled from Chattanooga to Atlanta, Georgia to meet with Asa Griggs Candler, the owner of Coca-Cola, in hopes of securing the rights to bottle the beverage. At the time bottling Coca-Cola was seen as an untested industry, and Candler had concerns over maintaining the quality of his product. Eventually he sold the rights to bottle Coca-Cola in the United States to Thomas and Whitehead for one dollar.

In December 1991, a merger between Coca-Cola Enterprises and the Johnston Coca-Cola Bottling Group, Inc. (Johnston) created a larger, stronger Company, again helping accelerate bottler consolidation. As part of the merger, the senior management team of Johnston assumed responsibility for managing the

Company, and began a dramatic, successful restructuring in 1992.Unit case sales had climbed to 1.4 billion, and total revenues were $5 billion. Basically, Coca Cola the product went through many different processes to become the immensely strong product that it is now and we shall speak about it marketing story in the project.

The Market Environment

Over the years Coca Cola Company has become the largest in the soft drink industry. To look at the market share we would first have to analyze the overall sale of Coca Cola.

One can clearly say that over the years, Coca Cola has seriously made some huge amount of money. The sales in terms of money and unit have increased gradually. The major credit should be given to the marketing strategies that were introduced in 2004. In the later part of the project we show how Coca Cola loses large amount of market share of its competitors Pepsi and then it bounces back after 2005. As seen in the table, since 2005 sales have taken a comparatively better jump.

Let us focus on the geographical dominance of the Coca Cola Company. As it is known that, in the USA Coca Cola still has the better of the sales than any other competitors out there. But the major focus of some of these large companies has been on the Asian countries. Countries like China, Japan and India had been selected by Coca Cola in the new marketing strategy which was adopted to get back the large market share.

The pervious diagram shows us the unit sales of Coca Cola in 2008, in the different counties other than the major western countries like USA, UK, and Canada etc. This diagram help us understand that since Coca Cola company shifted its major sales and marketing focus off from the western countries and aimed their product to the Asian countries, their sales have been highly effective. In Asian population, which is the satisfied customer of Coca Cola, is approximately 3.2 billion and the average consumer enjoys close to two servings of our products each month. Through an intense focus on Coca-Cola, innovation and new beverages, the company has achieved volume growth of 10 percent in 2002. With developing economies and populations, this region has strong long-term potential, and the company is building an exciting family of beverage brands in addition to expanding the popularity of our core brands, led by Coca-Cola. In China, for example, sales of Coca-Cola increased 6 percent. The total unit case sale of Coca Cola in Asia can be shown by the above pie chart.

The Competition

Coca Cola never had any problems from any of its competitors since the beginning. Its most obvious competitors has always been Pepsi. But seemingly or not, Coca Cola has overpowered Pepsi since many years. But the recent trend has shown that this strong hold of Coca Cola has not remained since 2003. It was around that time that Pepsi started immense marketing and promotion of their products. In early 2000, Coca Cola’s market capitalization was $128 billion which was almost three times that of Pepsi which $44 billion. But by December 2004, all had changed. Pepsi’s capitalization had shot up to $98.4 billion against Coca Cola’s $97.9.

This Cola War between Coke and Pepsi has been on since the time Pepsi entered the soft drink industry. In 2004, Coca Cola hired back an ex-employee, Neville Isdell, out of retirement to become the next chairman. This was basically done because Coca Cola felt that they were losing the top position in the industry to Pepsi. Since then, millions have been put in by Coca Cola into their marketing and innovation departmen

Sales and profit trend:

The Company and Its Strategies

The Coca-Cola Company was originally established in 1892 as the J. S. Pemberton Medicine Company, a co-partnership between Dr.John Stith Pemberton and Ed Holland. The corporation was created to sell three main products: Pemberton’s French Wine Cola (later known as Coca-Cola), Pemberton’s Indian Queen Hair Dye, and Pemberton’s Globe Flower Cough Syrup.

In 1894, the company became a stock company and the name was changed to Pemberton Chemical Company. The new president was D. D. Doe while Ed Holland became the new Vice-President. Pemberton stayed on as the superintendent. The company’s factory was located at No. 107, Marietta St. Three years later, the company was again changed to Pemberton Medicine Company, another co-partnership, this time between Pemberton, A. O. Murphy, E. H. Bloodworth, and J. C. Mayfield.

Finally in October 1898, the company received a charter with an authorized capital of $50,000.The charter became official on January 15, 1899. By this time, the company had expanded its offerings to include Pemberton’s Orange and Lemon gay Elixir.

Market Share & Profit Trend:

According to the 2005 Annual Report, the company sells beverage products in more than 200 countries. The report further says that of the more than 50 billion beverage servings of all types consumed worldwide daily, beverages bearing the trademarks owned by or licensed to Coca-Cola account for approximately 1.5 billion (the latest figure in 2010 shows that now they serve 1.6 billion drinks everyday). Of these, beverages bearing the trademark “Coca-Cola” or “Coke” accounted for approximately or roughly, 78% of the Company’s total gallon sales.

Also according to the 2007 Annual Report, Coca-Cola had gallon sales distributed as follows:

43% in the United States

37% in Mexico, India, Brazil, Japan and the People’s Republic of China

20% spread throughout the rest of the world

In 2010 it was announced that Coca-Cola had become the first brand to top £1 billion in annual UK grocery sales.

Strategic Planning:

In the year 2008, the company had a great success, as the strategy worked which resulted in making Coca Cola Company the world’s leading company. In 2005, company accomplished the crust of its strategy as:

Worldwide volume increased by 4 percent with strong international growth of 5 percent and clear signs that our North American business is growing solidly and predictable.

Earnings per share grew by 82 percent, as we delivered on our commitment to create volume growth while aggressively and belligerently.

Return on common equity grew from 23 percent in 2000 to 38 percent this year.

Return on capital increased from 16 percent in 2000 to 27 percent in 2005.

The company has fabricated free cash flow of $3.1 billion, up from $2.8 billion in 2000, a clear indication of its underlying financial strength.

The strategy for the future of the company is very straightforward and simple. The marketing strategy for the year 2010 is as follows:

Accelerate carbonated soft-drink growth, led by Coca-Cola.

Selectively broaden the family of beverage brands to drive profitable growth.

Grow system profitability and capability together with our bottling partners.

Serve customers with creativity and consistency to generate growth across all channels.

Direct investments to highest potential areas across markets.

Drive efficiency and cost-effectiveness everywhere.

Target Markets (Targeting):

Coca Cola is basically a product which is meant for everyone. So there would not be any specific target market, in concern with the customer. But we can mention the market, in terms of location, which were the Asian countries. After Coca Cola and Pepsi became quite famous in USA and the UK, the next focus came upon countries like India, China and Japan. The new marketing strategy of Coca Cola included sales increase in these countries.

The Coca Cola Company did come up with other products to satisfy the customers who didn’t prefer the regular Coca Cola. An example of this could be the Diet Coke. Since the increase in awareness of health problems related to carbonated drinks and obesity, had increase people chose to avoid Coca Cola. To a response to this, Coca Cola came up with ‘Diet Coke’ or ‘Coca Cola Light’. This was meant to target the particular market which was health conscious. They were even meant to target young men who cared a lot about their physical appearance.

Here is an example of the advertising of Coca Cola Light which aims to attract young adults.


There are different brands of the Coca Cola Company, which are currently in use throughout the world. This company not only deals in the carbonated drinks but also other drinks. While launching its product, the marketing team considers the culture of the country.

Major brands of coca cola




Diet coke

Coke classic


Minute Maid




Just Juice

Kia Ora

Five Alive

The Marketing Mix

Marketing Mix could be explained as a mixture of ingredients which are required to develop a strong marketing strategy. They are basically included of the famous four ‘Ps’, which are Product, Price, Place and Promotion.


Many Products are physical objects that you can own and take home. But the word product means much more than just physical goods. In marketing, product also refers to services, such as holidays, where you enjoy the benefits without owning the result of the service. The Coca-Cola Company’s products include beverage concentrates and syrups, with the main product being finished beverages. The business has over 300 brands of beverages around the world with the main ones being Coke, Sprite, Fanta, Fruitopia 100% Fruit Juice, Lift, and PowerAde. The Coca-Cola Company packages its drinks into plastic bottles of sizes 2 liters, 1.25 liters, 600mL and 300mL. These are also available in aluminum cans of 375mL. Coca-Cola is the most well known trademark, recognized by 94 per cent of the entire world’s population. The business is very successful and holds excellent status and reputation.


Pricing strategy is basically competition-based. Coca Cola sets the prices of its products, above or equal to the prices of its competitors. They even use a modern pricing tool called Psychological pricing. Most of the Coca-Cola products use this method of pricing. For example, for a pack of 375mL x 18 cans of Coca-Cola soft drinks it is priced at $9.98 instead of $10.00.This pricing strategy makes consumers perceive the products to be cheaper. Other than this, they do agreements with shop keepers and stores to exclusive sale in the stores. These stores are called as KEY accounts in their local language. And coke also invest heavy budget on these stores and offers them free samples and free bottles and some time cash incentives.

Sometimes, The Coca Cola Company changes their product prices according to the season. So in winter they reduce their prices to maintain their sales and profit. But normally they reduce the prices of their pet bottles or 1 litter glass bottle.


The place P of the marketing mix refers to distribution of the product- the ways of getting the product to the market. The distribution of products starts with the producer and ends with the consumer. The Coca-Cola Company sells its products to bottling and canning operations, distributors, fountain wholesalers and some fountain retailers. These then distributes them to retail outlets, milk bar and corner stores, restaurants, petrol stations and newsagents. The Coca-Cola Company channels their product through the following:


Retail/corner stores

Restaurants, petrol stations


Here, we can see that geographically, which countries consume most of the coca cola products.


The promotional strategy adopted by Coca Cola has led to their current success. There are not a certain but a mixture of many different methods of promotion.

Getting shelves: They gets or purchase shelves in big departmental stores and display their products in that shelves in that style which show their product more clear and more attractive for the consumers.

Eye Catching Position: Salesman of the coca cola company positions their freezers and their products in eye-catching positions. Normally they keep their freezers near the entrance of the stores.

Sale Promotion: Company also does sponsorships with different college and school’s cafes and sponsors their sports events and other extra curriculum activities for getting market share.

UTC Scheme: UTC mean under the crown scheme, coca cola often do this type of scheme and they offer very handy prizes in it. Like once they offer bicycles, caps, tv sets, cash prizes etc. This scheme is very much popular among children.



For providing their product in good manner company has provided infrastructure these includes:

Vizi cooler


Display racks

Free empty bottles and shells for bottles


The Coca Cola Company use different mediums

Print media

Pos material

Tv commercial

Billboards and holdings

Print Media

They often use print media for advertisement. They have a separate department for print media.

POS Material

Pos material mean point of sale material this includes: posters and stickers display in the stores and in different areas.


Currently, the Coca-Cola Company is headquartered in Atlanta, Georgia. Its stock is listed on the NYSE and is part of DJIA, S&P 500 Index, the Russell and the Russell 1000 Growth Stock Index. Its current chairman and CEO is Muhtar Kent. Its prices are doing well and the Company never really faces problems in generation of funds. The Coca Cola Company has been around for so long and has been through a lot. Even through the hard competition provided by Pepsi, Coke still manages to keep a small upper hand over it, in the market.

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Coca-Cola has always had a close consumer and supplier relationship with its customers. It’s entertaining and colorful advertisements have always and will always rock the media. International rock stars, sportsmen and actors have played a very vital role in making Coca- Cola such a popular beverage. But most importantly, Coke became a product which managed to enter almost every home, around the world.

For future prospects, the marketing strategy used by Coca Cola has proved successful. Their huge investment in marketing and innovation has paid off. They are more likely to continue this strategy and get back their extremely large market share that they used to have almost a decade ago.


Coca Cola is no doubt the heart beat of soft drink lovers all over the world and it has become the most popular word in this world, after the word ‘OK!’. This shows the global reach of the product and the amazing market stand that Coca Cola has created, since it entered the market. To conclude this project, and this analysis of Coca Cola marketing, we leave you with the most remarkable slogans of Coke which have changed the world.


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