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Promotional Strategies & Mix

Presented ByImran Khan


Neeraj Sharma
Saurabh Gupta
Shreshtha Jaiswal
Subash Kumar

Company Introduction
Coca-Cola was founded in May 1886 by Dr.

John S. Pemberton in Atlanta, Georgia.


Name "Coca-Cola" was suggested by Dr.
Pembertons bookkeeper, Frank Robinson.
Currently offers more than 500 brands in over
200 countries and serves over 1.6 billion
servings each day.
Company operates a franchised distribution
system dating from 1889

Leading Cola brand in India (Thums Up & Sprite


combined)
Re-launched in India & acquired local brands
Exited from India FEMA regulations
Expanded internationally out of United States
Birth of the frst contour bottle
Signed the frst bottling agreement
Originated as a soda fountain beverage & sold for 5
cents/ glass

2000
1993
1970
1920
s
1916
1899
1886

Evolution

Open happiness

Brands under Coca Cola

Marketing Strategy
Marketing Mix

3
Product Line
Product: Quality
Brand Name
Logo
Packaging

Product range of Coca-Cola:


Coca-Cola,
Coca-Cola classic,
caffeine free Coca-Cola,
diet Coca Cola
caffeine free diet Coca Cola,
diet Coca Cola with lemon
Vanilla Coca Cola,
diet Vanilla Coca Cola,
Cherry Coca Cola,
diet Cherry Coca Cola,
Fanta brand soft drinks,
Sprite,
diet Sprite
Sprite Remix

Product Lifecycle of Coca Cola:


Product life cycle has four phases
1. Introduction
COCA2. Growth
COLA
3. Maturity
4. Decline.

Major Markets:
U.S.
Europe
Asia
Africa

U.S, Europe- Maturity Stage


Asia Africa- Still in growth stage

Trivia: The red and white Coca-Cola


logo is recognized by 94% of the
world's population

Marketing Strategy
Marketing Mix

Price:

Modulation in Prices
Psychological Pricing
Penetration Method

PRICING PHILOSOPHY:
In 2013 both Coca Cola and Pepsi had a solid presence in

India and each had introduced a 300mL bottle. In order


to grab market share Pepsi began to drop prices (even
with summer approaching, which was contrary to policy
in America). Shortly thereafter, Coca-Cola decided to
drop their prices slightly, but focused on the reduced
price point of their 200mL container. Coca- Cola planned
to use the lower price point to penetrate new cities that
were especially price sensitive. The carbonated soft drink
market in India is nearly 69% of the total beverage
market.

In India, the average income of a rural worker is Rs.2000

a month. Coca Cola launched a 200 ml bottle for just


Rs.5, an affordable amount on the pockets of the rural
audience.

This low price strategy was not unfamiliar to Coca-Cola.

Both Coca Cola & Pepsi utilized a low price strategy in


the early 1990s. After annihilating the low price store
brands, Coca Cola chose to reposition itself as a
"Premium" brand and then raise prices.
When people buy Coca-Cola they are not just buying

the beverage but also the image that goes with it,
therefore to have the price higher reiterates the fact
that the product is of a better quality than the rest and
that the consumer is not cheap. This is known as
value-based pricing and is used by many other
industries in attracting consumers.

Trivia: Around the world, a person on an


average consumes a Coca Cola product
every four days

Marketing Strategy

Marketing Mix

Place:

Intensive Distribution Strategy


Warehouse & Delivery
Marketing Channels
Coverage

Modes of Entry into the foreign Markets:


Direct Exporting
Licensing
Franchising

Coca-Cola also directly exports its merchandise to overseas

distributors and companies. Other than exporting, the


company markets internationally by licensing bottlers around
the world and supplying them with the syrup needed to
produce the product.
Manufacturer-sponsored wholesaler franchise system. It is

very comparable to licensing but the only difference is that


the fnished products are sold to the retailers in local market.
Coca Cola has managed their companys marketing and sales

strategy within channels. This channel is direct to consumer


and vending machines often have little to no competition and
no trade or price promotions.

The Coca Cola Company operates three primary delivery

systems for its business channels:


Bulk delivery for the channels of large Supermarkets, Mass
Merchandisers and Club stores;

Key Channel Listing


Supermarkets
Convenience Stores
Fast Food
Petroleum Retailers
Chain Drug Stores
Hotels/Motels/Resorts
Mass Merchandisers
Vending

Coca Cola began using a new CooLift delivery system in 2006 in

a portion of the Company's territory which involves pre-building


orders in the warehouse on a small pallet the delivery employee
can roll off a truck directly into the customer's location. The
CooLift delivery system involves the use of a rear loading truck
rather than a conventional side loading truck.
The company works through independent bottlers of Coca Cola.

They work in coordination with the Coca Cola company which


produces the 'secret formula concentrate' and ships to the
distributors and bottlers for fnal processing and packaging prior to
shipment to the stores.
Coca-Cola floods all possible retailing stores in satisfying the third

part, place. In supermarkets and convenient stores, Coca-Cola


products are always easy to identify, and usually make up the
greater proportion of options to buy. This increases their market
exposure through effective use of the retailers.

Promotional Mix

Promotion
Top line promotions:
Promotional activities intended towards mass consumers using
mass media.
TV Ads, design of banners and other mega event (like world cup

cricket match and other) sponsorship initiatives taken up by the


company simultaneously all around India with no difference in
designs or execution fall in this category.

Below the line promotion:


Includes the promotion schemes, publicity material, Point of Sale
display
Done by the company from zonal, plant, sales manager and area
sales manager level.
At the sales manager and area sales manager level promotion is
done exclusively for the cities in their respective areas.
These activities can be categorized under sales promotions

Promotion

Creating Santa Claus


Associating with McDonalds, etc
Associating with cricket, cinema & music
Endorsing through top celebrities
Building high brand visibility
Re-inventing itself
Making it a generic product thanda matlab

coca cola

Packaging it in an attractive & economical way

Coca Cola
Studio@MTV
embarks on
the third
season of its
musical
voyage

Tamil Actor
& Fanta
Brand
Ambassado
r Tamanna
Bhatia

'Meet and
Greet with
Kareena'
contest in
Chandigarh

Coca-Cola
India
launches the
2012 edition
of the Limca
Book of
Records
Quiz

Limca - do
pal taazgi

Coca Cola India Marketing Strategy


Consistent effort on its part to align its

product with the Indian Culture and tradition


Earliest of the ad campaigns shows the brand
positioning itself as a relaxing drink, fghting
off the hot weather and humidity of Indian
weathers
Coca Cola adopted the dual strategy of Jingles
and Celebrity endorsements
Popular Coca Cola Jingles in frst decade of its
existence - Always The Real Thing, Pee Le
Coca-Cola, Jo Chahe Ho JayeCoca-Cola

Coca Cola India Marketing Strategy


Year 2003 - Thanda Matlab Coca cola ad
Amir Khan was presented in 6 different looks,

working on the simple philosophy of


highlighting how Indian related to the brand
as a cool relief.
If you meant refreshment you meant Coca
Cola.
Instrumental in establishing Coca Cola as a
brand in India.

Coca Cola India Marketing Strategy

Bollywood stars endorsing the brand - Karisma Kapoor,

Aamir Khan, Hrithik Roshan and Aishwarya Rai


Post 2003, next 5 years - Cola War with rivals Pepsi
- aggressive marketing campaign - Coca Cola roped in
15 celebrities against 8 of Pepsi.
To counter all negative complaints Coca Cola Post
2009 - adopted the Global happiness campaign experimented with different kinds of images
Ad campaigns like Saath Khao
Khushiyaan Badao -projected as a
beverage enjoyed by the entire family
together

Coca Cola India Marketing Strategy


Umeedon Wali Dhoop, Sunshine Wali Asha

ad launched in the year 2012


Sells hope for better tomorrow and shows that
every and any dream is achievable .
Also roped in Sachin Tendulkar, as a
happiness brand ambassador to support
various
CSR
initiatives
the
brand
is
undertaking

Coca Cola India Marketing Strategy


Besides Flagship Coca Cola ad campaign, the brand has focused

upon positioning other umbrella brands i.e Thumbs Up , Limca ,


sprite and Fanta etc.
Thumbs Up India
branded as Manly drink in India since year 1993
roped in Salman Khan as the brand ambassador
Coca Cola India has partnered with Salman Khans Charitable

foundation Being Human and would be involved in various


philanthropic initiates of the brands

Brand Fanta
Zyada Fanta Zyada Fun tagline
Bollywood actress Asin currently endorses the brand
Projected as a fun youth brand and celebrities the energy of young
individuals
Ads are usually humorous and perky
Fanta has occupied a strong market place
Is identifed as the The Fun Catalyst.

Promotion in India
In order to add local flavour in its advertisements and

promotional activities, Coca Cola has collaborated with


established Stars and Programmers (Daler Mehndi).
Coca-Cola also connected with movies such as Taal, Dil
Ka Rishta, Yaadein etc
The company has understood the importance of festivals
in the Indian Culture and has taken lot of initiatives in this
regard.
Coca-Cola has an enduring affiliation with cricket which is
the most beloved game for Indians.
Hindi being the national language and the most spoken
language in the country, most of the companys
advertisements are broadcasted in Hindi language.

Promotion in India Ad Campaign


Title: 'Come home this Diwali
Campaign Brief: Build a high impact, high
intensity wide spread campaign. Deploy
multiple innovations in conjunction with
standard outdoor media formats. Create high
visibility brand presence at ambient locations.
Create an air of festivity & celebration through
various lighting & format based execution.

Advertising
As a part of pull strategy and also due to intense

competition spends heavily on advertisements.


Concept of aggressive advertising to promote products used
Important tool to cater to mass markets
Mainly does national advertising
Introduce different themes and concepts to sell their product
Advertises mainly in electronic media and out of home
advertising
Advertisements build brand image and create awareness
Use big names of Indian flm industry as the brand
ambassadors of the Company
Created memorable and catchy slogan since years
E.g. Thanda Matlab Cola-Cola, Jo chaho ho jae Cola-Cola
enjoy, Coca-Cola-Piyo sir utha ke, Brrrrrrr!!!

SETTING OF ADVERTISING BUDGET


Sets its advertisement budget

on the basis of
based budgeting.

competitor

Major competitor of Coca Cola is

Pepsi and as Coca Cola realizes


that Pepsi has increased its
advertising
budget,
straight
away Coca-Cola management
plans to do the same so that
they can compete in advertising
department as well.

Trivia :Coca-Cola spends more money on


advertising than Microsoft and Apple combined

Coca-Cola advertising budget (2010): $2.9 billion


Microsoft advertising budget (2010): $1.6 billion
Apple advertising budget (2010): $691 million

Mediums of Advertising
Print Media:
Coca cola is said to have a different print media
department.

Coca
Cola
advertisements all over
the world are creative
so as to appeal to the
mass
media.

Coca-cola: "REFRESHING WIND"


Print Ad by McCain Erickson
India

Mediums of Advertising
Point of sale Materials:
Merchandising is essential to
communicate to the consumer
at the point of purchase.
Sales people and delivery
personnel both take the
additional responsibility of
merchandising.
If required special teams are
sent to specifcally
merchandise its products
Includes Posters and stickers
displayed in different areas
Coolers, freezers, Display
Racks

Mediums of Advertising
TV Commercials:
Regular TV Commercials on different channels
focuses on both rural as well as urban crowd
feature diffrent brand ambassdors from time to
time
Try to connect with the crowd
Examples

Reasons to Believe India


Brrr Ad Campaign

Mediums of Advertising

Outdoor Advertising:

Very much conscious about their billboards and

hoardings
Many sites in different locations for their billboards
Billboards are usually found at cross roads,
buildings, shops
In India the Coca-cola can be seen painted on
walls, bus stands, dhabas etc focusing in rural
areas of India.

Coca-Cola splits advertising pie among Lowe


Lintas, Weiden + Kennedy and McCann Erickson

In April 2012, Coca Cola brought together two


of the country's best-known names in creative
advertising, Prasoon Joshi and R Balki, to create
its campaigns
Coca-Cola India named Balki-led Lowe Lintas
and V Sunil's Weiden + Kennedy as additional
advertising agencies to work on the creatives of
brand Coca Cola along with its long-standing
agency, Prasoon Joshi's McCann Erickson.

Direct Marketing
Uses direct marketing in many ways
It partners with various restaurants, movie

theatres, etc. to carry its product


So when a customer orders a drink, the only
brand they are offered is Coca-Cola, which
forces them to consume that brand itself
Thus Coca Cola forces out the competitors,
and keeps the restaurants, or other
businesses, purchasing their product over and
over again
Eg. Mc Donalds, Dominos

Direct Marketing

According to mobilemarketingmagazine.com,

Coca Cola uses mobile graphics and texts to


appeal to markets on a more personal level
Cola also sponsors various sporting events in
India and around the world in events like
Cricket, Football, and Motor Racing etc

Direct Marketing

Coca-Cola India now with its


ecommerce presence
Latest online store in pipeline,

Coca Cola2home.com to provide


home delivery
First of its kind venture by any
FMCG company till date in India
Initially services available only in
7 cities providing free home
delivery at minimum order of Rs.
300
Same day delivery is available if
ordered before 12 noon
Can also make order with mobiles
through m.Coca Cola2home.com.

Internet Marketing
Uses the internet to promote its products
Company has its own website - simple to navigate
Website allows customers to become interactive through

various games, contests, shopping, and through a special


section of the website that enables consumers to fnd out
how they can help their community.
Also company uses various social networking sites like
Facebook, YouTube, Twitter to connect with the
consumers.
Internet marketing helps to reach to those consumers
who cant afford to spend time on T.V and are always
online.

Internet Marketing

Coca-Cola
Happiness Machine around the

world
The Happiness Machine video, the result of a collaboration
between Coca-Cola and integrated interactive marketing
agency Defnition 6, features a Coca-Cola vending machine
transformed to deliver surprising doses of happiness to
unsuspecting college students.
In India Delhi; Thapar University, Patiala; DAV College
Chandigarh; colleges in Punjab
Interview with Creators
Goal:
To beef up its digital activation platform
Plan was to release seven different pieces of content, iPhone and

social media applications, wallpaper screen savers and a video


that would go viral
The Happiness Machine web video started out as just a piece of
digital content, a dose of happiness

Coca-Cola
Happiness Machine around the
world

Spent zero on promoting The Happiness Machine.


One status update was posted on Coca Colas Facebook
Page, one tweet and that was it
Within a day the video was picked up by bloggers and
it spread from there
Coca Cola uploaded the web video to Coca Colas
YouTube channel on day one
In the frst week there were one million visits. It hit the
top of the viral video chart that week.
It was all about the exercise of producing creative
video for online distribution
Aimed for something the audience would use and enjoy

Coca-Cola tries to bring India,


Pakistan together via its new
vending machines
ET Bureau Mar 21, 2013, 03.09AM IST
Coca-Cola vending machine in upscale mall in South Delhi not
only dispenses Coca Cola but will very soon connect India and
Pakistan.
Once a similar machine is installed in Karachi or another
Pakistan city, users of the two vending machines can see and
virtually touch each other
Coca-Cola has quietly launched an online campaign that seeks to
connect people in not-so-friendly countries through vending machines,
starting with India and Pakistan this year.
"This year, two countries will show that what unites us is
stronger than what sets us apart and come together to share a
Coca-Cola," says the commercial launched on YouTube.
This world peace initiative is part of the frm's
happiness project. "A moment of happiness has
the power to bring the world together," it says.

Coca-Colas vending
machines
Coca-Cola set up a 'hug machine' in Singapore-a vending machine with

red and white message announcing the consumer to 'hug' it, after
which the consumer would be given a free Coca Cola. The 'hug
machine' generated 112 million impressions within one day.
In Istanbul, it had installed a vending machine that gave away free
Coca Cola if people could prove they were indeed a couple.
Coca-Cola is spending heavily on social media globally, though the
spends are still small compared to what it spends on traditional mass
media.
"Brands can't work remotely anymore so it is important to listen and
engage to consumers," Wendy Clark, senior VP, integrated marketing
communications and capabilities, at Coca-Cola had told ET last month.
"We make consumers part of our marketing channel, sharing content
and engaging with them all the time," Clark had said, adding that the
company was looking at investing in innovative ways to connect on
social media.

Sales Promotion

A sales promotion is an activity that is implemented to boost the sales

of a product or service temporarily.


It allows price discounts and allowances to distributors and retailers in
order to push more products into the market. It employs both push
strategy through promotions and pull strategy through
advertisements and campaigns.
Coca-Cola does sales promotion in two ways to quickly increase sales.
Consumer

- Oriented sales promotion:


Getting Shelves
Eye Catching Position
Under The Crown Scheme

Trade

- Oriented sales promotion:


Discounts to retailers and stores
Return back allowances
Merchandising assets
Free goods or free tours

Publicity
Publicity refers to non personal communications

regarding an organization, product, service or idea


not directly paid or run under identifed sponsorship.
For instance, when Coca Cola produces a new
product, and someone on their lunch break purchases
that new product, and enjoys it, they will tell others in
the office about how great the new product is.
Today, the company can still use word of mouth
advantage.
This will cause others to purchase the product, and
in-turn increase sales.

Public Relations
Public relations is defned as the management function which

evaluates public attitudes, identifes the policies and procedures of


an individual and organization with public interest, and executes a
program of action to earn public understanding and acceptance.
Coca-Cola can address law suits, rumors, stories, new products,
and activities.
There is also a section of the website devoted to investors. Here,
current, or future, investors can access fnancial statements and
up-to-the- minute stock information.
The Coca-Cola India is also undertaking some projects as a part of
their social cause and part of the corporate social responsibility.
The support my school campaign along with NDTV has Sachin
Tendulkar as the brand ambassador.
The project Unnati focuses on more yield of mangoes to farmers.
Coca Cola also Sponsors events in cricket and music.

Publicity & Public


Relations
Sanjay
Dutt
and
Sachin Tendulkar at
Coca-Cola India and
NDTV 'SUPPORT MY
SCHOOL'
campaign
event at Yash Raj
Studios in Andheri,
Mumbai

Coca Cola Market PositioningSustainable Community Model


Projects itself as a brand which wants to grow along with

the society.
Has undertaken variety of community development
projects in rural & urban areas.
One such example is Project Unnati. With a seed
investment of $2 million, the project aims at training
farmers and has has established about 100 demo farms in
the pilot phase with plans to train 50,000 farmers over fve
years.
Coca Cola Indias Parvartan Program trains local Kirana
store owners in good business practices. Similarly in
another initiative, Coca cola has distributed Solar water
cooler ekocool to female retailers in Interior regions of
Uttar Pradesh.

Sponsorship
Coca-Cola India was the

official beverage partner


of The Commonwealth
Games .
Launched

an impactful
outdoor campaign in Delhi
NCR
45-day campaign rolled
out on September 10
Is complemented by CocaCola India also launching
its new visual identity
system (VIS) and logo for
the Games

Sponsorship
Associated with mega sporting events

in its efforts to promote healthy, active


living
and
promoting
social
cohesiveness.
Partnership with sporting events across
the world provides an opportunity to
enhance brand value, build capabilities
and further build upon the employee
and system pride in being associated
with such sporting events.
By associating with the Commonwealth
Games, had the opportunity to refresh
more
than
8,000
athletes
and
delegates and more than 30,000
volunteers who took part in the Games

Sponsorship

Sponsorships:

First Commercial Sponsor of Olympic Games in 1928


Fifa World Cup(Since 1978)
Major League Baseball, NBA, NHL.
1996 Cricket World Cup
IPL: Delhi Daredevils
English Football League(Coca Cola Championship,
League 1, 2)

Personal Selling
Has

many salespeople, who are individuals


representing the company to communicate, sell,
service and build relationships with customers.
These salespeople promote their product to
different customers within their regions, and once
they sustain a customer, they sell their products to
them and service them many times per week.
These individuals form close relationships with the
customers in order to continue business with them.
Thus though minimum, the company also thus have
many sales people for personal selling.

According to a Survey
Recall through images and
taglines

Fails to recall Coca Cola

13.33%

Able to recall Coca Cola

Conclusion:
Coca Cola has a high brand recall

86.67%

According to a Survey
Recall amongst the aerated
drinks
Pepsi; 28%

Coca Cola; 72%

Conclusion:
Coca Cola has a large bouquet of offering like Thums Up,
Sprite, Fanta, Maaza, Limca, etc which contribute to the
aggregate recall of Coca Cola

According to a Survey
Ideal celebrity to endorse Coca Cola

4%

7%

13%

6%
4%
6%

60%

Hrithik Roshan
Aamir Khan
John Abraham
Farhan Akhtar
Katrina Kaif
Mahendra Singh Dhoni
No Celebrity

Conclusion:
Aamir Khan scores far above other celebrities when it comes to
endorsing Coca Cola

Celebrity Endorsers

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T u!
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