Marketing mix of Coca-Cola – Coca-Cola marketing mix
This is a detailed analysis of the marketing mix of Coca-Cola. It analyses the 4Ps (Product, Price, Place, and Promotion) of Coca-Cola Company and explains its business & marketing strategies. The Coca-Cola Company is an American multinational corporation. It is best known around the world for its flagship product, Coca-Cola.
Products in the marketing mix of Coca-Cola
The Coca-Cola Company has a wide product range. It has more than 500 sparkling and still brands and sells approximately 1.9 billion servings a day globally. It offers 80 drinks across 20 different brands in the UK. Coca-Cola Classic, Coca-Cola Zero Sugar, Fanta, Fanta Zero, Sprite, Sprite Zero, Diet Coke, Dr Pepper, Dr Pepper Zero, Powerade, Powerade Zero, Schweppes Water, Schweppes Mixers, Schweppes Lemonade, and Oasis are some of the popular products of Coca-Cola (The Coca-Cola Company, 2020).
Over the years, the world has witnessed a growing awareness of the impact of a variety of drinks on public health. The Coca-Cola Company’s response to the public concerns has been prompt. For example, some of the products are now caffeine-free. The company also has a reduced or no-sugar, no-calorie option for almost all of its products.
Coca-Cola Company is one of the most valuable brands in the world. Its products come in different sizes and shapes which help customers choose the right amount of drink. All the bottles and cans of Coca-Cola are 100% recyclable. Coca-Cola had 48.6% of market share of carbonated beverages worldwide in 2015. The company’s net revenue for the year 2018 was $31.9 billion (Statista, 2019).
Price in the marketing mix of Coca-Cola
There are a number of pricing policies available to business marketers e.g. competitor pricing, discrimination pricing, value pricing, cost-plus pricing, and, loss leader pricing. The biggest rival of Coca-Cola worldwide is Pepsi. Both companies price their products competitively. Therefore, it can be said that Coca-Cola’s pricing policy is a competitor pricing.
Some analysts would argue that the company also uses value pricing as the prices of the Coca-Cola products are not so high that the average customers cannot afford to buy. However, the prices are not very cheap either which would have given the customers an impression of low quality. Prices may vary country to country, and city to city. For example, the typical price of a Coca-Cola drink (1.25L) is £1.00 (One pound) in many UK super markets, while a 330ml can of Coca-Cola drink costs customers 70p (Seventy pence). The price of a 2 liters of Coca-Cola in New York is $2.43 dollars. The price of a 2 litres of Coca-Cola is £1.79 in London, while it is slightly higher at Glasgow in Scotland.
Place in the marketing mix of Coca-Cola
Place in the marketing mix of Coca-Cola refers to where the company’s products are available and how they are made available to the customers. Coca-Cola has developed an extensive distribution network. The company’s distribution strategy is very intensive as well. Therefore, customers find Coca-Coca products available in almost all retail outlets and supermarkets across the globe.
While Coke’s ingredients are well-known, the exact recipe of Coca-Cola is a secret. The company produces a syrup concentrate to sell to its licensed bottlers around the world. The bottlers then add filtered water and sweeteners with the concentrate to produce the final products in cans and bottles.
The bottlers then sell, distribute, and merchandise the finished products to retail outlets, restaurants, petrol stations, newsagents, corner shops and many more. It is not therefore hard to imagine how Coca-Cola products are available even in remote areas in many countries. It is worth mentioning that the shapes and sizes of the bottles are predefined by the Coca-Cola Company, not by the bottlers.
Promotion in the marketing mix of Coca-Cola
Promotion in the marketing mix of Coca-Cola usually refers to how the company communicates with its customers and stakeholders. The cost of maintaining the position of the global leader in the beverage industry is not cheap! The Coca-Cola Company spent a total of $3.499 billion in 2014, $3.266 billion in 2013 and $3.342 billion in 2012 in advertising globally. The total advertising spending for the year 2018 was approximately $4.1 billion. This is massive!
The Coca-Cola Company uses a variety of promotional strategies to take its messages to the customers. It uses different types of media for its advertising campaigns. Media e.g. TV, the Internet, newspapers, and social media have all been used by the company. The company also makes use of different sales promotion techniques. For example, it offers special incentives and bulk-buying discounts to the distributors and the retailers.
The Coca-Cola Company has a long history of sponsoring major events, organisations and projects. It is the sponsor of American Idol, Apple iTunes, BET Network, NASCAR, NBA, NCAA, the Olympic Games, and others. It is the longest continuous corporate partner of the Olympic Games. The company’s partnership with the Olympic Games started in 1928 with the Amsterdam 1928 Olympics (The Coca-Cola Company, 2020). The Coca-Cola Company has also been one of the longest-standing corporate partners of FIFA since 1974. The partnership has been extended until 2030 (FIFA, 2017).
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Last update: 04 January 2020
Lancaster, G. & Reynolds, P. (2004) Marketing, 1st Edition, Palgrave Macmillan
Statista (2019) The Coca-Cola Company’s net operating revenues worldwide from 2007 to 2018, available at: https://www.statista.com/statistics/233371/net-operating-revenues-of-the-coca-cola-company-worldwide/ (accessed 29 November 2019)
The Coca-Cola Company (2020) About us, available at http://www.coca-cola.co.uk/about-us (Accessed 02 January 2020)
Photo credit: Pixabay
Author: M Rahman
M Rahman writes extensively online with an emphasis on business management, marketing, and tourism. He is a lecturer in Management and Marketing. He is a graduate of Leeds Metropolitan University and London South Bank University.