Coca Cola Brand Building Strategy

Introduction-: Coca-Cola is a carbonated soft drink sold in stores, restaurants and vending machines internationally. The Coca-Cola Company claims that the beverage is sold in more than 200 countries. It is produced by The Coca-Cola Company in Atlanta, Georgia, and is often referred to simply as Coke or (in European and American countries) as cola, pop, or in some parts of the U. S. , soda. 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 As a Griggs Candler, whose marketing tactics led Coke to its dominance of the world soft-drink market throughout the 20th century. The company produces concentrate, which is then sold to licensed Coca-Cola bottlers throughout the world. The Coca-Cola Company has, on occasion, introduced other cola drinks under the Coke brand name. The most common of these is Diet Coke, with others including Caffeine-Free Coca-Cola, Diet Coke Caffeine-Free, Coca-Cola Cherry, Coca-Cola Zero, Coca-Cola Vanilla, and special editions with lemon, lime or coffee. Brand building strategy -: Brand development strategy of Coca Cola has been far reaching and has managed to remain in the limelight ever since it became a favorite with the non alcoholic drinkers. It has been noticed that brand loyalty is an important factor in maintaining the number one position. Founded in the year 1886, the Coca Cola company enjoys the status of being one of the biggest non alcoholic beverage companies of the world. It has a distribution system, which makes it unique from the rest of the non alcoholic beverage manufacturers. Over the years, Coca Cola has passed several tests of brand enhancement and the company makes it a point that the products under the banner Coca Cola continue to invade the minds of the consumers. The brand development strategy of Coca Cola comprised redesigning of its brand development policies and techniques to keep up with the changing mindset of its consumers. Earlier, this brand believed in the following: †¢ Afford ability †¢ Availability †¢ Acceptability However, this brand development strategy of Coca Cola was re worked to stress on the following instead: †¢ Price value †¢ Preference †¢ â€Å"Pervasive penetration†. The essence of brand building of the company lies in the fact that it wants its consumers accessibility to be â€Å"within an arm's reach of desire†. In an attempt to build its brand identity, as many as 20 brand attributes are tested every month involving as many as 4000 customers. The brand development strategy of Coca Cola is effective as it has been able to construct, manage As well as maintain its brand image. Another reason why this brand has gained unanimous acceptance all around the globe is due to the fact that it has been able to connect very well with its consumers. This implies brand loyalty. Brand loyalty has been instrumental in keeping up the brand image of Coca Cola. It believes in shelling out the best so that the consumers are retained by default. A part of the brand building technique is also to enhance â€Å"purchase frequency†. The company has also invested in various advertisement campaigns often engaging the services of celebrities around the globe. In addition to the consumers, there is another category of consumers, who increase the consumer base and they constitute the collectors of the brand. The collectors usually indulge in collecting old as well as upcoming logos of Coca Cola, bottles and literary matter. With regard to the brand development of Coca Cola Zero, the company came out with an advertisement, which was quite different from the conventional ones. In this regard, (no calorie beverage), it has shelled out three types of products. †¢ Coca Cola Classic †¢ Diet Coke †¢ Coca Cola Zero. There are few experts who believe that when Coca Cola had the tag line of â€Å"The Real Thing†, it was really that but with the invention of various categories of coke, the â€Å"real thing† changes to â€Å"many things†, and the original flavor is usually lost. Hence, the brand building strategies should be such that it does not confuse people and is able to retain consumers despite the fact that several new non alcoholic beverage firms are on the anvil. The Power of Brand Accessibility If you were another soft drink company, you might define your competitive frame of reference as the cola market or the soft drink market or even the beverage market. But Coke thinks of its business and its market share in terms of â€Å"share of human liquid consumption. †Ã‚   This makes water a competitor. In fact, a Coke executive has said that he won’t be satisfied until â€Å"there is a Coca-Cola faucet in every home. †Ã‚   Coca-Cola’s mantra is â€Å"within an arm’s reach of desire. † One Final Coca-Cola Fact A recent Coca-Cola annual report reported that the second most recognized expression in the world after â€Å"ok? † is â€Å"Coca-Cola. Brand Equity-: â€Å"The brand assets (or liabilities) linked to a brands name and symbol that add from a service. † Brand equity is difficult to measure because much of it depends on consumers' perception and opinions of a brand. When a product has high brand equity they are successf ul at retaining their current customers by keeping them satisfied with the quality of products and service. They are also successful at attracting new customers who have heard of the brand through successful marketing or word of mouth. Coca-Cola's brand equity is difficult to measure because they have extended their brand to include numerous products. In addition to the numerous of versions of Coca-Cola worldwide that compete against other beverage brands, Coca-Cola competes with itself. Nationally there are numerous versions / brands that are a part of the Coca-Cola family. Some of the brands include Coca-Cola Classic, Dasani Water, Full Throttle, Fanta, and Soy Products. In addition to competing against itself the Coca-Cola Company has saturated the market and consumers who may dislike one product may actually enjoy a different Coca-Cola product. However, the consumer may be unaware that the beverage is actually in the Coca-Cola family. As a result measuring brand equity may be difficult as consumers may be loyal and repeat customers of a brand and not know its origin. Coca Cola was taking its core product, Coke, and expanding the product in new form factors and new overseas markets. The brand promise stayed the same whether it was sold in a Coke store in New York or a road side stand in Mongolia – refreshment, good times, and pure Americana. Despite the numerous brands and the difficulty in measuring brand equity it is evident that Coca-Cola has high brand equity. They are a company who has been in business for many years they have gained the business of consumers in the soda market as well as numerous other beverage markets nationally and internationally. Their sales and growth show that they are a successful company Brand identity the brand identity is the audio-visual ‘face' of the brand – the cues that tell you that you are are in the right place. The brand definition is the formal description of what the brand stands for within different description categories – its personality, its values, its stories, its emotional benefits etc.. The brand proposition is the ‘deal' the brand is offering you at any given moment the coca-cola comp. has long been recognised as an organisation with significant brand equity with over four four hundread brands available in virtually every nook and crany of the world . the flag ship brand of coca cola has stood the rest of the time over 120 years. Infact coca-cola alone is recognized as the most valuable in the world by the respected inter brand corportionvalued at above US $ 67 billion , the coca-cola brand (coke)has become effectively become a part of modern world culture. hough its advertising campaign has changed over the years,coca-cola â€Å"THE REAL TASTE† has always stood for a†REAL† COLA DRINK with authenticity . the identity has been build by an decade with consistent values and diferentiated elements. Many competitors have aim at cokes but the brand continues to command a number one position globaly in ranking of brand equity. After all If u stand for the real thing every competitor is an imitator. the Coca-Cola bottle design differentiated the identity, the easier it is to protect from infringement. Just coca cols has remained to its time tested identity u have the equallly relivant to you. This brand identity should reflect your own unique equity and care essence this will ensure your brand creativity and identity that is meaning ful and sustainable in long term. [pic] Brand image- â€Å"A unique set of associations in the mind of customers concerning what a brand stands for and the implied promises the brand makes. † There could be hardly any person around the world that hasn't heard the name Coca Cola. Ever since it beginning as world's leading name in cold drinks, Coca Cola has created a strong brand image irrespective of age, sex and geographical locations. Millions of people around the world are consuming cold drinks or soft drinks as part of their daily meal. Coca Cola, ever since its inception has been the leader in soft drink market. Brand image is the significant factor affecting Coke’s sale. Coca-Cola’s brand name is very well known all over the world. Packaging changes have also affected sales and industry positioning, but in general, the public has tended not to be affected by new products. Coca-Cola’s bottling system also allows the company to take advantage of infinite growth opportunities around the world. This strategy gives Coke the opportunity to service a large geographic, diverse, area. Brand loyalty Brand loyalty is a central construct to marketing. Keeping the consumer satisfied, and loyal enough to frequently purchase just one brand, is more difficult in today’s marketplace than ever before. But today, major brands are experiencing heightened brand loyalty due to the growing popularity of the brand as a collectible. A recent Coca-Cola annual report reported that the second most recognized expression in the world after â€Å"ok? † is â€Å"Coca-Cola. † Brand personality:- Brand Personality identity is understood as the set of human characteristics associated with a brand. The brand image building strategy implies the definition of a brand personality and a user personality. Have you ever thought about your personal brand? Brand personalities that 1) Are well-known, 2) offer something different to the world than they do in terms of products and services ‘Coca-Cola’s’ brand personality reflects the positioning of its brand. The process of positioning a brand or product is a complex managerial task and must be done over time using all the elements of the marketing mix. Positioning is in the mind of the consumer and can be described as how the product is considered by that consumer. When researching the positioning of a product, consumers are often asked how they would describe that product if it were a person. The purpose of this is to develop a character statement. This can ensure that consumers have a clear view of the brand values that make up the brand personality, just like the values and beliefs that make up a person. Many people see ‘Coca-Cola’ as a part of their daily life. This imilarity between the brand and the consumer leads to a high degree of loyalty and makes the purchasing decision easier Brand Positioning:- The location of a brand in relation to its competitors in some pre-defined space. The space may be defined by criteria used by consumers, such as â€Å"value for money† or â€Å"age of consumer† etc. † 5 main factors that go into defining a brand position. 1. Brand Attributes What the brand deliv ers through features and benefits to consumers. 2. Consumer Expectations What consumers expect to receive from the brand. 3. Competitor attributes What the other brands in the market offer through features and benefits to consumers. 4. Price An easily quantifiable factor – Your prices vs. your competitors’ prices. 5. Consumer perceptions The perceived quality and value of your brand in consumer’s minds (i. e. , does your brand offer the cheap solution, the good value for the money solution, the high-end, high-price tag solution, etc.? ) The Coca-Cola Company produce a range of beverages suited to different ages, stages, lifestyles and occasions. This includes soft drinks, diet drinks, juices and juice drinks, waters, energy drinks, sports drinks and cordials. As part of a healthy, varied and balanced diet and an active lifestyle, all products can be enjoyed by the majority of people. It is committed to helping customers select the product that is best suited to their needs through the provision of detailed product information supported by general advice on healthy eating, drinking and lifestyles. It understands that balancing energy intake with energy output is key to a healthy body weight. We therefore provide choice through range of low or no-kilojoule products that are ideally suited to the needs of people who wish to reduce energy intake through beverage selection. Such products are readily available at a similar cost to an equivalent higher energy product. As one of the largest producers and marketers of non-alcoholic beverages we promote physical activity through our active lifestyles programme and sponsorship of sport. Through new product development we will continue to release a range of new types of drinks, including low or no kilojoule products as we look at ways in which to cater to those people who wish to reduce energy intake through selection of lower energy beverages. Children and the role of our beverages Coca cola respect and support the primary role that parents play in decisions affecting the lives of young children, including choices about diet and lifestyle. Beverage choice, like food selection, is a role for parents and we assist them in this through the provision of nutrition information and by making available a wide range of products suitable for all ages, stages and occasions. Coca-Cola's longstanding global policy ensures we do not directly market our products to children under the age of twelve. Our brands are not advertised during children's television times and we do not show children under 12 in advertising or promotional materials drinking our products outside of the presence of an adult. Our sampling events are directed to people over the age of 12. In the small number of schools where we provide vending machines we work with the school to provide a range of beverages, and ensure that lower energy products are priced attractively and the packaging is in a single serve size. Guidelines have been established to oversee the manner in which we work with schools and their tuck shops. It is company practice to sell diet drinks and sugar-free alternatives at a similar price to regular carbonated soft drinks. Retailers offering ‘specials' are encouraged to include both the regular and diet versions of our soft drinks. Through new product development it aim to develop more products that meet the unique needs of children and will work with nutrition experts as we do this. For healthy active and growing children, beverages higher in energy can be enjoyed as part of a balanced and varied diet. However, we also provide a range of low or no-kilojoule products also suitable for children. Supporting sport and physical activity Globally, The Coca-Cola Company has a long history of supporting sport and activity. have been a major Olympic Games sponsor since 1928 and also sponsor major international sporting events. Coca-Cola has been an All Black sponsor for the past decade and has also supported provincial netball and rugby. At a grassroots level, Coca-Cola has formed a partnership with the National Association of OSCAR (Out of School Care and Recreation) to develop and implement a national physical activity programme available to 75,000 young New Zealanders. In South Auckland, the Get Moving programme is working to encourage children to participate in local sports and recreation courses. The Pump water brand is now a major sponsor of the Heart Foundation's Jump Rope for Heart programme that runs in schools across New Zealand and through the Powerade sports drink brand, we support numerous sporting events around the country. Labelling All products of The Coca-Cola Company provide clear nutrition information in compliance with international regulations. Packaging Coca-Cola is committed to strict environmental guidelines, and to ensuring our packaging has as little impact as possible on the environment. To this end, a recycling project was introduced in New Zealand during 2001 which ensures our PET bottles contain an average of 10% recycled material. Information Programmes Coca cola’s consumer contact centre provides around the clock access to information about the companies. Pricing It is company practice to sell diet drinks and sugar-free soft drink alternatives at a similar price to regular carbonated soft drinks. Similarly, any competitions or promotions of Coca-Cola can be entered by our consumers who purchase diet Coke. Although at the discretion of retailers, special offers and reduced prices on soft drinks are usually available for both the regular and diet versions of our soft drinks Brand extension :- Brand extension or brand stretching is a marketing strategy in which a firm marketing a product with a well-developed image uses the same brand name in a different product category. Organizations use this strategy to increase and leverage brand equity (definition: the net worth and long-term sustainability just from the renowned name) [pic] [pic] [pic] [pic] [pic] Conclusion:- The progress and advancement in the field of technology in the fields of soft drink raw material, production, manufacturing, information and communication technology and logistics have great positive impacts on the operations and sales of Coca-Cola. The availability of new soft drink ingredients enables Coca-Cola to introduce new variety of its products to its existing consumers, not forgetting to attract the new consumer groups. The use of the latest information technology has made able the company to attract the new generation of soft drink consumers with the latest features of song downloading. Also the existence of company website has enabled the world to be in touch with the latest progress, promotions and offers of Coca-Cola.