Product catalog of The Coca Cola Company Coca-Cola is constantly changing its portfolio, from reducing sugar in drinks to bringing innovative new products to market.. Carbonated soft dri
COMPANY OVERVIEW
General information
The Coca-Cola Company is a beverage company and an American multinational manufacturer, retailer, and marketer of non-alcoholic beverages and syrups The company is headquartered in Atlanta, Georgia and was founded in Wilmington, Delaware in 1892 The company is best known for its flagship product, Coca- Cola, a carbonated soft drink formulated by pharmacist John Pemberton in the late 19th century The company has also introduced many other products under the Coke brand such as Diet Coke, Coca-Cola Zero or Coca-Cola Cherry The company has operated a franchised distribution system since 1889 in which the Coca-Cola Company only produces concentrated syrup, which is then sold to various bottlers around the world around the world The Coca-Cola Company currently operates in over 200 countries around the world with more than 500 brands and 3900 products The company also has branches in different countries to manufacture and distribute its products In Vietnam, Coca-Cola company has been present since 1994 with two factories in Hanoi and Ho Chi Minh City.
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Logo meaning and slogan
The Coca-Cola logo is a simple yet unique and striking symbol The logo consists of the brand name written in white Spencerian Script on a red background The
5 handwriting has a curved shape, creating a feeling of joy and friendliness The colors red and white also have their own meanings: red symbolizes passion, determination, youth and vitality; White represents purity, purity and sincerity.
Coca-Cola's slogan also changes over time to match the company's business and marketing strategy Some famous slogans of Coca-Cola are:
- The Pause That Refreshes (1930): Nghỉ ngơi để khôi phục sức sống
- It's The Real Thing (1969): Đó là điều thật
- Always Coca-Cola (1993): Luôn luôn là Coca-Cola
- The Coke Side of Life (2006): Phía cuộc sống của Coke
- Open Happiness (2009): Mở hạnh phúc
- Taste The Feeling (2016): Nếm cảm xúc
The historical development milestones of Coca-Cola in Vietnam
It began in 1886 when pharmacist John S Pemberton created a new soft drink sold in soda water containers in Atlanta, Georgia The Coca-Cola brand name is written in the Spencerian script proposed by accountant Frank Robinson.
In 1889, Asa Griggs Candler bought the Coca-Cola formula and brand from Pemberton and founded the Coca-Cola Company in 1892.
In 1894, Joseph Biedenharn bottled Coca-Cola for the first time and began to distribute it widely.
In 1919, the Coca-Cola Company listed its shares on the New York Stock Exchange.
Coca-Cola has constantly grown and expanded its operations worldwide with more than 500 brands and 3900 products The company also has innovative business and advertising strategies to attract customers For example, the sponsorship of the Olympic Games since 1928, the launch of Diet Coke products in 1982, or the organization of the Coke Studio music competition since 2008.Today, Coca-Cola Corporation has succeeded in expanding the market with many different types of drinks, initially carbonated water, and then fruit juice, sports energy drink, mineral water, tea and a few others.
Product catalog of The Coca Cola Company
Coca-Cola is constantly changing its portfolio, from reducing sugar in drinks to bringing innovative new products to market Coca-Cola has always sought to positively impact the lives of people, communities and the planet through replenishing water, recycling packaging, practicing sustainable sourcing, and reducing carbon emissions across the price chain Coca-Cola value.
The product portfolio of Coca Cola includes:
Carbonated soft drinks: like Coca Cola, Fanta, Sprite, Diet Coke, Schweppes Tonic, Lemon Soda and Crush Sarsi.
Juices and fruit milk drinks: like Minute Maid Nutriboost and Minute Maid Teppy.
Water and tea: like Dasani and Fuzetea+.
Sports and energy drinks: like Aquarius and Samurai.
Vision, Mission and Core Value
To craft the brands and choice of drinks that people love, to refresh them in body
& spirit And done in ways that create a more sustainable business and better shared future that makes a difference in people’s lives, communities and our planet
About people: Coca Cola desires a best working environment, strong inspiration. About products: Bring to the world the best products, creativity and innovation according to the needs of the future market.
About partners: Together building sustainable values, mutually beneficial Profit: Maximize profits and keep growing
Operational productivity: Efficient, fast and successful
Satisfying customers by providing high-quality beverage products and creating value for stakeholders
To refresh the world in mind, body and spirit.
To inspire moments of optimism and happiness through our brands and actions.
To create value and make a difference.
Coca-Cola's core values include:
Leadership: means being able to definitely shape a better future.
Cooperation: leverage to get astronomical materials.
Responsibility: do the right things and take responsibility for your actions. Professionalism: always strive for perfection and strive for excellence.
Care: care about the development of employees, customers and the community.
Distribution system
Coca-Cola's distribution system is one of the important factors that helps the company maintain its leading position in the beverage industry Coca-Cola has built and perfected a smooth and highly efficient distribution channel network. The company uses a multi-level distribution channel strategy to bring products to consumers Distribution channels include:
Direct channel: Coca-Cola sells directly to supermarkets, department stores, restaurants, hotels and large retail outlets.
Indirect channel: Coca-Cola cooperates with exclusive distributors to deliver goods to smaller retail pointsạ The company also has mobile trucks for sales in rural and mountainous areas.
Online channel: Coca-Cola has a website and mobile application to receive orders from customers and deliver to their door.
Coca-Cola always tries to expand and improve its distribution system to meet the needs of the market and customers.
OVERVIEW OF THE MARKET AND ENVIRONMENT OF COCA COLA
The Coca-Cola Company's Market Segment
Coca Cola focuses on segmenting the market according to 4 main criteria: Geographically: Coca Cola distributes with a dense network from urban to rural areas, from plains to mountainous areas, from south to north, but still focuses mainly on densely populated areas, Coca's products Cola appears everywhere, from small to large eateries and refreshment shops, Stretching from north to south
Demographic characteristics: Coca Cola is almost produced for most people,from young children to the elderly Coca Cola's products are aimed at customers who are young people and children of school age, this is the group with the highest demand for products
By agent chain: Coca Cola distributes most of its products to consumers in the fastest way Therefore, customers can search for products of this brand anywhere. From small retail agents to a system of large supermarkets across the country such as BigC, Lotte Mart, Coopmart, VinMart
By product: Currently on the market, Coca Cola is distributing many famous product lines including carbonated soft drinks, energy drinks, tea, milk, and filtered water Basically, all of these product lines are not too clearly differentiated in terms of customer files.
Target customers of Coca Cola
Age group: There are 2 segments: Coca Cola mainly directs its products to young consumers aged 10 to 35 years old However, diet Coca-Cola products are preferred by people with diabetes, often those over the age of 40
Income level: Coca Cola offers its products in many different sizes and packaging with different prices, to suit the pocket of students, middle class, This criterion is also related relative to family size, due to variations in bottle and packaging sizes
Geographical location: Coca Cola supplies its products in more than 200 countries However, they pursue a different strategy for each country because the needs of the target customers in each country are different due to climate, income, culture, customs (Example: In the US, Coca-Cola's products have almost reached maturity, covered in many places, while in the Chinese market, Coca-Cola has growth potential but the needs and habits of consumers are completely different. The reason is that in Asia, especially in Japan and China, people have the habit of drinking tea instead of soft drinks)
Gender: In general, Coca-Cola targets both men and women, however there is a clear difference in preferences and tastes between the sexes For example, Coca Light is quite popular among women, while Coca Zero has a stronger flavor that is preferred by men This is also seen in product design and advertising The product design of Coca Light mainly focuses on two main colors, black and red,which looks more masculine than Coca Light.
Brand Positioning
Coca Cola is a leading brand in the world in the beverage industry Saying Coca- Cola succeeds in brand positioning strategy is too accurate because almost no one is unaware of this name when it comes to soft drinks Coca Cola is not only successful in positioning its own brand but also very successful in positioning the competitor's brand
Coca Cola’s Competitors in VietNam
Currently, Coca Cola is always at the forefront of the beverage industry In which,nutritional drinks, fruit juices, milk and plant-based beverages increased by 12%.But Coca Cola always has to face many famous competitors in the market today.4.1 Pepsico
Coca Cola's competitor – PepsiCo, Inc is an American multinational food, snack and beverage corporation headquartered in Harrison, New York PepsiCo's business includes all products in the food and beverage markets The Group oversees the production, distribution and marketing of its products
Coca Cola competitor PepsiCo was founded in 1965 with the merger of Pepsi- Cola Company and Frito-Lay, Inc Since then PepsiCo has expanded from its eponymous product, Pepsi Cola, to a range of branded food and beverage products The largest and most recent acquisitions were Pioneer Foods in 2020 for
$1.7 billion and before that was Quaker Oats Company in 2001, which added the Gatorade brand to Pepsi and Tropicana Products' portfolios in 1998
As of January 2021, the company owns 23 brands with sales of more than $1 billion PepsiCo has operations around the world and its products are distributed in more than 200 countries, generating more than $70 billion in annual net sales. Based on net sales, profits and market capitalization, PepsiCo is the second largest food and beverage business in the world, after Nestlé
Coca Cola's competitor – Suntory PepsiCo Vietnam (English name: Suntory PepsiCo Vietnam Beverage Company) is a beverage company in Vietnam. Suntory PepsiCo Vietnam was established in April 2013, as a joint venture between PepsiCo Vietnam and Suntory Holdings Limited
Officially entering the Vietnamese market in 1995, through a strategic alliance and officially named Suntory Pepsico, after nearly 25 years of establishment and development, Pepsi has become one of the leading companies in the world. number of commercial brands leading the beverage industry market
Coca Cola's competitor – Tan Hiep Phat Trading and Service Company Limited is an enterprise specializing in manufacturing and trading beverage products and bottled drinks in Vietnam
Tan Hiep Phat brand has won the title "Vietnamese high quality goods" voted by consumers, honored National Brand 2012, 2014
Dietrich Mateschitz, an Austrian businessman, co-founded Red Bull Energy Drink with Chaleo Yoovidhya in 1980 The event was inspired by a popular Thai drink called Krating Daeng, which was invented by Chaleo Yoovidhya
Dietrich changed the ingredients, and in 1987 the first Red Bull drink was marketed in Austria It has grown in popularity and has become the most popular energy drink in the world
Coca Cola's competitor Red Bull started as an energy drink consumed by Thai truck drivers and workers and has since grown into the most popular energy drink for athletes, workaholics, teenagers around the world.
PESTLE
The development of the beverage industry depends on the regulations of each host country These regulations are issued by the Government to create certain effects on the production of these products in that country Based on these regulations, businesses need to meet the requirements set by the Government, otherwise they have to pay fines as prescribed by law
Here are some legal and institutional factors affecting Coca Cola's business results over the past time:
Some changes in law and regulations on tax rates, amended tax laws require businesses to strictly comply Changes in the carbonated beverage business environment
These changes include competitors' entry into the industry, pricing policy, competitiveness, etc This forces Coca Cola to share market share with competitors
In terms of political conditions, Coca Cola is a global brand, so the influence of world politics is inevitable Accordingly, civil unrest or changes in the host country's government will greatly affect Coca Cola's business results
Depending on each country, the ability to enter the beverage industry will have different points In developing and emerging markets, entry into the industry will have more stringent requirements Not only that, strategic business alliances with local bottle suppliers will create the foundation and basis to promote the growing beverage industry
Coca Cola's sales are affected by a range of economic factors beyond the company's control These factors include domestic and industry economic growth, tariffs and exchange rates, exchange rates, interest rates, labor costs, and others. The global economic and financial crisis of 2007-2009 is an example involving an economic factor that affects the majority of global businesses However, the crisis has impacted Coca
Cola to a lesser extent than many other businesses Its operating margin is still at a lower level than many other businesses Its Operating Margin remains at 22% ahead of the industry, despite the Crisis, although the Instant Rate has dropped to 2.6%
Water scarcity is another big problem Coca Cola requires a huge amount of water to produce but the capacity is limited due to the very high cost of water in some countries Arguably, fluctuations in Exchange Rates are the most important economic factor that has adversely affected Coca Cola's performance in recent years For example, the key currency prices in venezuela, Coca Cola's reported profits in this market had to drop 55% in the fourth quarter of 2014, and there are similar consolidations elsewhere in the world All of these factors can have a profound impact on a company's business and profitability
Own experience in the Vietnamese market, the growing economy helps people's lives to be increasingly improved Therefore, the demand for using soft drinks instead of filtered water is also increasing And we can easily realize that, Coca- Cola's soft drinks have crept to all the tables on this S-shaped strip of land
The United States is the country where Coca Cola is located, the level of product consumption of the people here contributes a very important part to the sales of this brand Accordingly, many US citizens are practicing a healthy lifestyle, not using carbonated soft drinks This has greatly influenced the business strategies of this giant in the international market
Considering the Vietnamese beverage market in particular, the use of carbonated drinks has become an indispensable thing on the banquet tables However, the need for health care as well as keeping in shape is increasingly interested by young people, this target group of customers is gradually switching from using carbonated soft drinks to filtered water, causing many difficulties with Coca Cola when launching new products
But it seems that this is not so important when Coca quickly introduced to the market the sugar-free Coca-Cola product line This product hits the segment of customers who are on a diet, want to stay in shape but like to drink soft drinks
The Internet is growing, Coca easily introduces TVCs to customers through many different channels Through modern communication channels such as Facebook, Zalo, Tiktok or Youtube, Coca's products are quickly known to customers And also through these media, the "big man" in the beverage market will integrate preferential and discount programs when buying their products
Modern technology has helped Coca upgrade from using glass bottles to tin cans and plastic bottles The use of tin cans and plastic bottles has brought a clear sales effect Customers will prefer these designs because it is very convenient, can be carried when going out, travel and can be thrown in the trash after use
Modern technologies are increasingly developed to help the production line of Coca Cola products become more and more advanced and shorten the production time Therefore, this brand has brought to the market a lot of high-quality products at extremely hot prices
Coca Cola is considered the largest soft drink consumer in the world And just for this reason, the company has faced a huge amount of backlash from environmental groups In countries like India, Coca Cola is being blamed for the complete withdrawal of groundwater in large areas Coca Cola needs to take immediate steps to put in place water management or it could be banned in these countries Some of these steps have already been taken by the brand It has promised a mission to reduce carbon emissions to near zero in the coming years and is also being seen by many as a model corporation Water-smart farming methods like RAIN and CARE are also adopted by Coca Cola in an attempt to use as little water resources as possible and harvest the maximum amount of water possible The growth of humid climates around the world is part of a climate change that has proven to be beneficial for the company It is now able to successfully raise its capacity in countries where it was previously unable to. However, low resource efficiency continues to be a dilemma for Coca Cola.
Compliance with the local laws of the countries in which the company operates is causing the main legal trouble Coca Cola faces Many countries have different laws regarding caffeine standards and sugar consumption Brands need to make sure they meet all such regulations wherever their products are sold Previously, Coca Cola had been in trouble because of the amount of caffeine added to its products in many different countries and had to file a lawsuit their labor The company has been known to unfairly treat its employees and also receive wages below the norm in their country of operation As a result, Coca Cola faced opposition from various labor unions Its corporate ethics is a top concern for the company right now.
Coca-Cola Model Canvas
Coca-Cola’s customer segments consist of:
Consumers: The primary customer segment for Coca-Cola is individual consumers, who purchase the company’s products for personal use This includes consumers of all ages and demographics who may purchase Coca-Cola products at supermarkets, convenience stores, restaurants, and other retail locations; Retail and food service partners: Coca-Cola also has relationships with a variety of retail and food service partners These partners sell Coca-Cola products to consumers and often have exclusive agreements with the company to sell its products in their locations. b Coca-Cola Value Propositions
Coca-cola’s value propositions consist of:
Consumers: For consumers, Coca-Cola offers a range of beverages that provide refreshment and enjoyment The company’s products are popular with consumers of all ages and demographics and are often associated with happy occasions and celebrations;
Retail and food service partners: For its retail and food service partners, Coca-Cola provides a popular and recognizable brand that can drive sales and traffic to their locations The company often has exclusive agreements with these partners,which sometimes allow them to offer Coca-Cola products that are not available elsewhere. c Coca-Cola Channels
Coca-cola’s channels consist of:
Traditional Adverts d Coca-Cola Customer Relationships
Coca-cola’s customer relationships consist of:
Community engagement like local organizations and events
Collaborations and partnerships e Coca-Cola Revenue Streams
Coca-cola’s revenue streams consist of:
Sales of beverages to consumers
Licensing fees from bottling and distribution partners
Investment income from other businesses f Coca-Cola Key Resources
Coca-cola’s key resources consist of:
Customer relationships and data. g Coca-Cola Key Activities
Coca-cola’s key activities consist of:
Developing and producing beverages and syrup
Licensing its brand and products
Distribution and logistics (usually done by their franchises) h Coca-Cola Key Partners
Coca-cola’s key partners consist of:
Retail and food service partners i Coca-Cola Cost Structure
Coca-cola’s cost struture consists of:
Coca-Cola business model is centered on selling its products to consumers, licensing its brand and products to other companies, investing in other businesses, and sponsoring events and partnerships Coca-Cola’s business model is supported by its strong and recognizable brand, as well as its extensive network of bottling and distribution partners, retail and food service partners, and investors Despite facing challenges from increased competition and changing consumer preferences, Coca-Cola remains a dominant player in the global beverage industry and will likely continue to be so in the future.
Porter’s five forces
Coca Cola is one of the leading beverage brands with a global customer base, a global distribution network and an outstanding brand presence Any new player can have a small customer base locally, but globally, Coca Cola is very safe from new entrants This is mainly because the beverage industry is at a high level of saturation and any new entrant cannot benefit from economies of scale, which existing players like Coca Cola enjoy Furthermore, there is a significant knowledge barrier as to whether they can develop a recipe for a beverage that can compete with Coca Cola, and even the technological barrier can be judged as significant tell.
Any high yield market will inevitably attract new entrants who want market share and that will lead to lower prices by both old and new firms and hence lower profits for all the players in the market There are always new entrants to the beverage industry However, for them to have a strong foothold like Coca Cola will be an extremely difficult task They will spend a lot of time and also spend a lot of money on marketing activities to get the brand image that Coca Cola loves. The level of customer loyalty in the market is moderate, and therefore to grow a brand overnight with a significant customer base is almost an impossible task.
As a result, the threat of new entrants in the industry is virtually negligible for Coca Cola.
Coca Cola not only has to compete with other soft drinks but also has to compete with other soft drinks that people can drink instead of Coca Cola.
Threat of substitute products is the ability of customers to switch to another product that fulfills the same basic need and thereby reduces profits Some of Coca Cola's biggest competitors are Tea, Coffee, and juices As people become more and more health-conscious, the threat of substitutes like Freshly Made Smoothies or Fresh Juices has multiplied The main alternatives that Coca Cola should consider are Pepsi, Juice, Milkshake, Tea, Coffee & Water This threat can be mitigated by product line expansion, such as the introduction of non- carbonated beverages The threat of attack can also be addressed by being service oriented rather than product oriented and also by focusing on what customers really need rather than what they are buying.
Since the cost of Switching is negligible and the benefits of the Substitute are often good, the threat of the Substitute is great.
The Coca Cola Company deals with many different types of buyers with varying degrees of bargaining Some of them are listed below.
Direct end users: No bargaining power, they buy the product at a fixed price that is usually constant.
Fast food chain owners: They have low to moderate bargaining power as Coca Cola is one of the most in-demand soft drinks.
Vending machines at malls and cinemas: Low to medium bargaining power. One of the biggest challenges Coca Cola faces in this category is that it needs to keep prices fixed even as production costs fluctuate As a result, either the company or the supplier suffers the loss.
This is a significant risk, but it is the risk that every other mass market participant faces.
Therefore, the overall bargaining power of the customer is low to moderate.
Coca Cola cooperates with some of its suppliers of raw materials, labor or services The bargaining power of suppliers is the right to which these suppliers are entitled The larger the company, the more long-term contracts it has to sign with its suppliers, as a change in the cost of raw materials or services will inadvertently lead to an increase in the cost of the final product Example: Sugar is one of the main raw materials in Coca Cola and a change in its final price will result in a change in the price of the product A bad year will cause the cost of the product to increase, which is not ideal for the company because it needs to keep the cost of the product unchanged Contracts help prevent this and maintain a steady flow of raw materials at fixed prices.
Therefore, the bargaining power of suppliers is low.
When you think of Coca Cola's competitors, the first name that comes to mind is Pepsi and these two companies have been competing with each other since the late 19th century Their main products are very similar both in taste and appearance, but there are also some key differences Competitive rivalry is the competitiveness of existing competitors in the market and their advantages over each other One of Pepsi's key advantages over Coca Cola is that it also owns several savory snack brands like Doritos and Lays, while Coca Cola, on the other hand, focuses on beverages If tomorrow the demand for soft drinks drops suddenly, it will affect Coca Cola more than Pepsi But Coca Cola also owns several other beverage brands, such as supplements and smoothies Even if people don't buy soft drinks, Coca Cola is betting that they will have to drink something else instead These two leading companies are similar in size and offer similar products.
Therefore, we can conclude that the competition among companies in the beverage industry is very strong.
SWOT
Global famous brand: This is Coca Cola's biggest strength at the moment with its brand recognition widely covered around the world According to BusinessInsider, up to 94% of the world's population recognizes Coca Cola's distinctive red and white logo Besides, the Coca Cola brand is also of great value thanks to its unabated popularity over more than a century of operation According to Interbrand's annual report, in 2021, Coca Cola ranks 6th in the ranking of the best global brands The brand's valuation reaches 57 billion US dollars On top of that are names like Apple, Amazon, Microsoft, Google and Samsung
The next Coca Cola's competitive advantage lies in its product reach Present in more than 200 countries and accounting for 1.9 billion daily servings of the company's products, Coca Cola has brought more than 500 products to global consumers Coca Cola's product diversity is considered to be able to serve all audiences with different lifestyles, interests and characteristics Thanks to that, this "all-people" product easily conquers even the most demanding consumers
A special study on Coca Cola also shows the competitive advantage of this brand.
Coca Cola that is considered the most emotionally connected brand in America. Users associate a feeling of “happiness” when mentioning Coca Cola and have high brand loyalty
Dominant market share in the global beverage industry: The two strengths mentioned above are enough to explain the third strength of Coca Cola's SWOT model, which is having a dominant market share in the global beverage industry.
In addition to Coca Cola and Pepsi products, the two leading names dominating the beverage market, the Coca Cola company also has a huge market share for products such as Coke, Sprite, Diet Coke, Fanta, etc Worthwhile position This rivalry is maintained not only in some countries but in all countries where Coca Cola is present
Worldwide distribution network: The beverage industry is considered a huge market With a potential brand name for Coca Cola, it is not difficult to penetrate both domestic and foreign markets Coca-Cola has the most efficient and extensive distribution network in the world The company has nearly 250 bottling partners globally.
Not to mention Coca Cola's acquisition policy also helps the company easily expand the market This brand has a long list of acquisitions and brings great profits including the Costa coffee chain, Fuze Tea, …
Largest Brand Association and Customer Citadel: Coca-Cola is considered one of the most emotionally connected brands in the United States This valuable brand is associated with “happiness” and has strong customer loyalty Customers can quickly identify their distinctive flavors Finding its substitute is difficult for them Furthermore, Coca-Cola and Fanta have larger fan bases than other beverage names in the industry.
Competitor is Pepsi: The eternal story of the war between Coca Cola and Pepsi probably never came to an end Because Coca Cola and Pepsi have so many similarities, the competition between the two brands cannot be reduced No one can deny that Pepsi is Coca Cola's biggest competitor Without a rival, Pepsi, perhaps Coca Cola would reach a position to dominate the entire beverage market
Only diversifying products in the beverage industry: Coca Cola is currently just diversifying products in the beverage segment With many beverage categories,Coca Cola holds the leading position that is hard to beat in this "playground".
However, this level of diversification remains low The reason lies in the fact that Pepsi has "encroached" into the snack market when developing Lays or Kurkure and Coca Cola is still struggling to give a clear position for themselves
Foreign exchange rate risk: This is one of the weaknesses that most multinational companies, with a large market share globally, will face Coca Cola in Vietnam completely bears this kind of risk if it is affected by adverse fluctuations in foreign exchange rates These fluctuations will reduce the revenue and profit of the business With Coca Cola, a possible scenario due to foreign exchange rate risk is to buy raw materials for production and business to pay in foreign currency or sell products and collect money in foreign currency
Health-related issues: Currently, consumers are quite focused on health issues. Therefore, soft drinks in general often cause consumers to have concerns about their health Coca Cola is no exception when most of its products are high in sugar When too much sugar is tolerated in the body, consumers can experience serious problems such as obesity and diabetes Many health experts have banned the use of soft drinks and the daily effect of Coca Cola is significantly affected. However, the brand has yet to offer any reasonable alternatives Besides direct agents, Coca Cola also has weaknesses in terms of indirect factors affecting human health As in the TearFund 2020 report, Coca Cola is one of four brands that are contributing to global warming and carbon emissions by producing more plastic bottles
Product diversification: Being "hegemonic" in one category and being
"underdog" in another, even though it is for investment purposes, can actually be an opportunity for Coca Cola Take the example of the snack industry as analyzed above In fact, there is no brand that dominates the snack market like Coca Cola dominates the beverage market Brands also have sporadic market share and few outstanding strengths Based on the economic potential and experience of
"fighting" in many countries, Coca Cola has countless strengths Strengths from understanding the local market, professional production lines to solid financial potential are the undeniable strengths of Coca Cola
Exploiting markets in developing countries: A feature of many developing countries is that the climate is quite hot Therefore, the demand for soft drinks in these countries is extremely high With Coca Cola's position, it is not difficult to exploit these extremely potential markets It is possible to mention previous examples that have been very successful such as in the Middle East and Africa, Coca Cola has exploited endlessly successful together and continues to be at the top here
Bring advanced supply chain system: Coca Cola's business system is completely dependent on transshipment and supply chain Moreover, the cost of transportation and raw materials always tends to increase This difficulty opens up opportunities for CocaCola when it wants to apply a more advanced system to improve the distribution process
CORPORATE STRATEGY
Differentiation strategy
To increase its competitive advantage, Coca Cola has implemented a differentiation strategy Thereby, businesses can easily access and position their brands with users However, the products and services of the brand must be really unique and new Only then will it really stand out from the competition For example, under a single brand name, Coca cola can offer many different products in each segment
Besides, Coca Cola also studies the differences in culture, customs, habits and language of each locality Thereby, bringing different products but suitable for consumers' taste The most typical is the Chinese market However, the lack of aChinese brand name as well as language differences have affected international brand recognition Or in the Moroccan market, Coca Cola brought the message inMoroccan “Dayman Coca Cola” (“always Coca Cola”) Since then, Cola has created a connection effect and increased accessibility to the people here.
Localization and Multi-Market Strategy
Each country will have different cultures that affect food tastes Therefore, in order to reach a wide range of customers, they need to satisfy the needs of food and drink flavors Make it easy to eat and impress local customers Any business that wants to launch effective international business campaigns needs to pay attention to localization and stimulation strategies From there, customers will trust the brand and products In addition, Coca Cola also customizes products and
25 applies marketing strategies in accordance with local requirements BecauseCoca-Cola has just entered the market, it needs to understand and make a strong impression on customers The first sure steps are a solid foundation for a viable brand positioning in each country And the first thing is to meet the needs of the indigenous people.
Globalization strategy
This is Coca Cola's international business strategy applied from 1981 to 2000. Businesses pursuing this strategy often launch the same products with the same marketing solution in all markets It is concentrated in a handful of locations around the world Thereby, economies of scale and location economies can be exploited CocaCola focuses a lot of its activities in Atlanta At the same time, buy ownership stakes in foreign bottling companies to gain more strategic control over them
The globalization strategy helps Coca-Cola exploit the potential international market Standardizing processes helps to ensure core product quality and reduce costs This is a prerequisite for sustainable brand development From there,increase competitive advantage and capture market share This strategy has helpedCoca-Cola derive 67% of its total income and 77% profit from countries outside the Northern Territory.
Merger and Partnership Strategy
For sustainable development, Coca Cola needs to ensure the ability to control the system in foreign markets Companies can choose the method of foreign equity investment, non-equity agreement Either invest in FDI enterprise capital or set up a joint venture company Coca Cola in Kenya has cooperated with 06 other joint venture companies in the same field and formed Cola Juice Company (CCC) The biggest competitor is the consortium Inca Kola Coca Cola has acquired 50% stake in Inca and nearly 40% stake in the company And this company became the sole bottler of Coca Cola Similarly, Coca Cola also acquired Costa fromWhitbread PLC in 2019.
Transnational strategy
A transnational strategy to increase profits by cutting costs globally At the same time, offer adaptive products to add value Units have a high degree of autonomy in business activities At the same time, there is close coordination with each other With great pressure both on cost and local conditions, this will be the most appropriate and effective strategy
Coca-Cola reviews and guides local product development and marketing Each place will have its own changes to suit Not only positioning a separate brand,Coca Cola also pays special attention to local market needs.
International organization strategy
To understand local needs and ensure tight control of the system The company has adopted a decentralized structure It consists of two groups of activities namely bottling and trading operations In which, business activities are divided into 5 regions: North America, Latin America, Europe, Eurasia and Africa, AsiaPacific Headquarters in Atlanta, Georgia The Board of Directors consists of 17 members with the Chairman is Mr Muhtar Kent, cum CEO of the company The place where the goals and directions of Coca-Cola's activities are set globally The local organizational structure is organized by region combining centralization and localization.
International Marketing Strategy
• Product strategy: Nearly 4,000 products with diverse product lines Most of the products are well known At the same time, there are technical improvements to ensure product quality From there, meet the needs of each local consumer
• Pricing strategy: Affordable, competitive prices to meet customer needs and ensure the highest profit
• Distribution strategy: Coca Cola transforms itself into a local company in every market it enters Thereby, affirming its prestige and ability to meet local market needs
• Promotion strategy: The company constantly improves its advertising, production, financial strategies, etc Thereby, suitable for each customer and market In addition, the brand also promotes advertising through the brand identity deployed everywhere From the two sides of the road, the football field to the supermarket, grocery store…
• Coca-Cola evolved from a cocaine-containing product in 1886 to a ubiquitous sugary beverage in 1929 Now, people in over 200 countries and territories consume 1.9 billion percent of the product drink this every day, according to the Coca-Cola Company David Butler - Vice President of Innovation and Innovation at Coca-Cola, co-author with Linda Tischler of Design to Grow: How Coca-Cola Learned to Combine Scale and Agility (and How You Can Too) (temporarily) Design for Growth: How Coca-Cola Combines Scale and Agility (and You Can Too), says it used seven key marketing and design strategies to bring Coca-Cola -Cola became the number 1 global brand
➢ STRATEGIC GOALS OF THE COCA-COLA COMPANY
Gain market share, especially hot drinks strengthen the promotion of collision
Equip the organization to win
Effective campaign A global digital communication infrastructure Guaranteed high return from marketing spend Global brand image
Increase earnings per share by 79%
Networking organization improved management revenue growth.
➢ COCA-COLA'S BUSINESS STRATEGY - KEY POINTS:
- Coca-Cola is the market leader in the worldwide carbonated beverage industry
- The franchise's strategy for global bottling partners has helped it grow rapidly
- By partnering with local small bottlers in underdeveloped markets, the company can strategically consolidate or acquire these small local businesses to expand the local market
- Marketing practices and strategies using a standardized worldwide brand image are also contributing to its stable position as a household name worldwide
- Coca-Cola's marketing mix: Product: a diversified portfolio including ClassicCoke, Zero, Fanta, etc.; Location: operates globally, can be found in shops,restaurants and vending machines; Advertising: across different communication channels and media, using a series of campaigns; Price: competitive price at market level.
COCA-COLA'S BEST ADVERTISING CAMPAIGNS
Coca Cola advertising campaign : LOVE STORY
For brands like Coca-Cola, the use and recycling of plastic is a hot topic In this campaign, Coca-Cola brings to mind the love story created between two plastic bottles that know and love each other thanks to the miraculous hand of recycling technology The brand claims it wants to collect and recycle all of its packaging by 2030, and Love Story is Coca-Cola's advertising campaign for this trend
Emotional Coca – Cola Campaign: Taste The Feeling
Launched by Coca-Cola in 2016, Taste the Feeling is an integrated campaign and an update to its previous “Open Happiness” tagline Planned with 10 TV, print, digital, outdoor and home delivery ads with the participation of many international organizations, Taste the Feeling made a strong impression on the public
The main theme of this campaign is for viewers to experience different emotions and moments of Coca-Cola drinkers, as well as show the diversity of how diners drink around the world.
Coca Cola advertising campaign: #ThatsGold
#ThatsGold was launched by Coca-Cola Brazil to celebrate the 2016 Rio Olympics Not only that, Olympic gold medalists and famous athletes like Judy Williams or Nathan Adrian also contributed to promoting the campaign This The 2016 Coca-Cola ad within this framework was also adapted for the global market Athletes from the US, Australia, etc will appear more in advertisements in their countries
Besides digital advertising and outdoor advertising, #ThatsGold also gives customers an element of experience At the Olympic Park, a private space of Coca-Cola will be built so that fans can comfortably check in and buy souvenirs
The most prominent Coca Cola advertising campaign: SHAKE A COKE
Not only that, but it also attracted a large number of followers to the Facebook Coke page, increased traffic by 870% and page likes by 39%, and gained more than 18 million media impressions
The event brought a breath of fresh air as buyers had the opportunity to order personalized Coke bottles through Facebook At the same time, in some countries and regions, the branding was completely changed and Coke products had different names.
Coca Cola advertising: WE DO
In April 2018, the sugar tax officially took effect in the UK, forcing the price of products with sugar to increase The original Coca-Cola was no exception, they had to increase it from £1.09 to £1.25 for a 500ml bottle
However, to promote its drink to users in a positive and friendly way, the brand launched the We Do campaign to show that it has kept the same recipe for 132 years In addition, the company specially invited Elvis Presley to appear in both media and offline with the slogan "They don't do them the way they used to We do" We are the ones who make them.”
At the same time, to encourage users to try sugar-free products, Coca-Cola also redesigned the product packaging in the UK with a uniform red color
TOP STRATEGIES OF COCA-COLA ADVERTISING IN VIETNAM
Personalization is a term in Marketing that is understood as "personalization", this is a trend in today's era because it is aimed at understanding customers, as well as bringing a high experience to users In addition, personalization is very evident in the FMCG industry, these FMCG groups are extremely competitive Therefore, the more personalized the brand is, the greater the likelihood of success.
The campaign originated in Australia
Then back to Vietnam impressively
Coca-Cola in 2015 has really stood out not only in the beverage industry, but also works well with all other brands The marketing campaign "printing names on coke cans" caused an uproar in the market, because it had never appeared before and it made customers feel excited about this job of Coca-Cola With the desire to be able to create consumer interaction with the brand, especially those of the Y gene, this strategy was born and implemented
The idea of the "Share a coke" campaign is the bonding, the moments of reunion with family and friends and the sharing of comfortable moments together with Coca In fact, this campaign has been deployed before in Australia, and back to Vietnam, the company started with 150 of the most popular pre-printed names on the market With this strategy, the customer buys the product sometimes out of curiosity, and owns a can of Coke with his name on it
In addition to these available names, the company also created an Online Marketing campaign when everyone created a coke bottle with their own name. With this campaign, the company also has data to create many other popular names to print on bottles
The results achieved really make many other brands jealous It created an extremely good effect, especially at a time when the strategies of the beverage industry were saturated, and with the new wind promoting "personalization" as Coca-Cola did, the consumption Consumption increased by 7% compared to pre- implementation output
The 2015 media index from this campaign of Coca-Cola also collected a total of
18 million views on social networking sites, 378,000 coke bottles were produced with their own names printed on the bottles, 76,000 models of the bottles Bottle
37 is created and shared to facebook The company's Fanpage traffic increased by 870% compared to before, an impressive number!
One of the most suitable times for firms to maximize demand is Tet For the vast majority of brands, time is spent on marketing campaigns that capture the customer's attention The shopping demand of customers at this time is always evaluated to increase 300% compared to other times, so the brand that creates a good touch point and strong enough communication effect will be a great success. would be a big plus
Coca-Cola is no exception, Still with the theme of family bonding during Tet, not following the trend of evoking compassion, bringing tears to consumers or stories with strong virality, Coca-Cola- Cola has created Tet 2018 in a unique way based on what is the simplest and most intimate All of them put on a warm, happy atmosphere, making people realize that every close moment is a moment of love. love should be respected
And Tet is only complete when we really feel those precious moments
The Touch Points that Coca-Cola creates are always images associated with family affection, plus moments of love and reunion Coca-Cola's TVC immediately created a positive effect, along with a set of Tet photos depicting individual and community emotions: "Tet love in every moment"
With Coca-Cola's Tet communication strategies, it is always appreciated every year, with 2017 being "Journey to welcome a new beginning", or 2016 as "Tet bonding" With these campaigns, the company is always in the top 10 brands with the highest buzz in the market during the Lunar New Year.
FIVE LESSONS LEARNED FROM COCA-COLA'S MARKETING STRATEGIES
Brand identity is a must have
A consistent brand identity has formed the basis of everything Coke has been able to build over the past decade and a half, and that identity is unlikely to change overnight
So, how can you create a consistent brand identity for yourself? Here are some essential aspects you will need:
If you're just getting started, start by creating a basic logo, create a simple color scheme to use on your content and ads, and design a typography guide to make sure you have a matching color palette Consistent visuals across all of your content You can build the rest of your brand identity as needed.
Prioritize product quality
Another reason Coke has maintained its success for so long is that it never sacrifices product quality
Wherever your marketing priorities lie — content marketing, traditional advertising, and more — these should never be prioritized in maintaining and improving the quality of your products Coca-Cola's success proves the effectiveness of this strategy; Their marketing campaigns are product-centric and a high-quality product supports them, increasing consumer trust and brand loyalty. You may want to form a team dedicated to product quality This team can look at customer reviews, look for improvement opportunities, or just make sure other priorities don't overtake the product team's priorities
Implement strategic pricing strategies
One way Coca-Cola has grown in popularity over the years is through competitive and strategic pricing strategies, including offering thousands of free samples near its founding date and maintaining low prices many years
Pricing can make or break your product, so you need to make sure your strategy works for you
The freemium pricing model works well for many companies by allowing them to share the equivalent of a free sample of their product while charging customers for access to premium or advanced features This is a great way to build brand loyalty and get more people to use your product
Another pricing strategy you should consider is short-term discounts designed to attract more customers If you can get them there, chances are you can bring them on board for the total price at a later date
You should also track the results of your pricing strategies Consider different A/B testing strategies Then use that data to inform future strategy so you can continue to offer your products at better prices, encouraging more customers to put their trust in your brand.
Actively explore new markets
Another aspect of Coca-Cola's marketing strategy that has contributed to their continued success is their willingness to enter new markets
Coke has expanded by entering the global market and expanding its reach to nearly every country on Earth, but you don't have to start shipping your product globally to grow enhance brand presence
Research your competitor's audience Are there any niches they're reaching where you can allocate more resources?
When you find an opportunity for your brand to expand its reach to new audiences willing to reach your products, you can capitalize on those markets with effective marketing strategies to get results Connect with them at their location.
Do special reactive PR
Ultimately, Coca-Cola maintained its global presence by responding positively, generating conversations, and leveraging strong PR to ensure competitors could not capitalize on its position them in the media
One way you can follow this strategy for your brand is by dedicating resources to public relations, competitor tracking, customer reviews and feedback, and public discussion
This team must be particularly responsive and take advantage of news gathering to keep your brand noticed for positive reasons and react quickly when you are noticed for negative reasons
The main priority of this PR team is to keep your positive brand identity intact and take advantage of opportunities to present your brand to the public in a positive light
Remember: Agile marketing wins Be ready to change your strategy based on feedback and results, and don't stop until you have achieved great success
Every year until Tet, Coca-Cola Vietnam launches the Tet campaign year 2023 with the message "Tet has changed, miracles are still here" to honor the value of family reunion meals on Tet holiday for generations In addition to the characteristic golden swallow image, each year Coca-Cola exploits a new aspect of its magical values in each Tet to spring With this year's campaign, the moment of bonding with the family meal tray is the miracle that Coca-Cola wants to spread in the community
Specifically, Coca-Cola will bring an interesting interactive activity called
Magic Table" on the campaign website Users can scan the QR code on any COCACOLA® Tet 2023 product, log in to share the moment when the family gathers around the Tet tray The site automatically stitches and designs photos in the style of different decades, creating special Tet cards that users can share on other social networking platforms
In addition, with each interaction, users also have the opportunity to receive shopping vouchers or order food on e-commerce platforms Through timeless family dining table photos, Coca-Cola hopes that people will somewhat feel how Tet has changed over the years, but the miracle of closeness remains in each family family Vietnamese family Not only attracting interaction through online activities, this year's Tet, Coca-Cola also offers consumers in Ho Chi Minh City a
41 special festival program, with a photo space filled with red and dozens of colors . stalls of folk games, Tet delicacies at Hoa Lu Stadium (No 2 Dinh Tien Hoang, District 1, HCMC)
The program is open to visitors free of charge for two weeks from December 24,
2022 to January 8, 2023 During the program period, Coca-Cola will hold a large scale event that brings together thousands of families and celebrities to create exciting magic with Coca-Cola, this special event will take place on January 8,
2023 Ms Nguyen Lan Yen, Marketing Director of Coca-Cola Vietnam said:
"COCA-COLA® is proud to be a part of the lives of many generations of Vietnamese consumers We are honored to accompany and witness this moment. Carving the miraculous bond of millions of Vietnamese family members in every meal, every occasion of reunion
With the message 'Tet, despite the change, the miracle is still here', we want to review old memories with everyone, clearly feel the warmth of the Tet tray, to appreciate more the values of the school exist of the family, of the traditional Tet that has never disappeared Coca-Cola believes that miracles always exist, and through this year's Tet campaign, we hope to be able to widely spread positive messages about friendship, sharing and family bonding to everyone home “ Coca-Cola's 2023 Tet season was kicked off with a promotional video (TVC) conveying the main message of the entire campaign "Even though Tet changes, miracles are still here" The 60-second video takes viewers back in time, tracking a guy's growth over two decades Experiencing many changes, the once single guy now has a small family of his own, only the miracle of intimacy and the warm atmosphere from the family meal is unshakable
During that time, COCA-COLA® is an indispensable Tet gift in every family reunion meal, helping to tighten the bond of friendship This year, COCA-COLA® continues to be one of the earliest brands to launch TVC Tet, bringing close-knit footage, warm family affection and bold Vietnamese culture People can watch TVC Tet 2023 on the fanpage of COCA-COLA® Life is constantly changing with new things, but the core values will last with time This Tet, let's review old memories with friends and relatives, review the precious time spent with family at the Tet tray with COCA-COLA®
CONCLUSION
Effective and active marketing activities around the world are strong contributors to Coca-Cola’s revenue and market shares Market and human insights are used heavily as indicators in Coca-Cola’s marketing activities This means that Coca-Cola can target specific consumer segments well by understanding their profiles, including age, gender, and lifestyles Hence, instead of individual products, brands under the conglomerate can be.
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