PROJECT REPORT On
MARKETING STRATEGIES OF COCA COLA
Submitted By – Name: -BHAIRI SRIKANTH JANARDHAN ROLL NO 11
RAGIV GANDHI COLLEGE OF MANAGEMENT STUDIES GHANSOLI
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INTRODUCTION Coca-Cola Co., the global soft drink industry leader controlled Indian soft drink industry till 1977. Then Janta Party beats the Congress Party and the Central Government was changed. This change brought problems for Coca-Cola principle bottler, who was a big supporter of Gandhi Family. Now Janta Party government demanded that Coca-Cola should transfer its syrup formula to an India subsidiary. Because of this Coca-Cola backed and withdrew from the country. In the mean time, India’s two target soft drink producers have gotten rich. Who were controlling 80% of the Indian soft drink industry. In 1993, the coco-Cola company came back to India. But the scenario of Indian soft drink industry had been changed from 1977 to 1993. The competition in the soft drink industry had become very tough. The major competitor at that time was Pepsi and Parle. Parle’s best known brands include ThumsUp, Limca, Citra and others were Gold Spot and Maaza. At that time Parle had a market share of 53% and Pepsi had a market share of 20%. Now Coca-Cola had to make some strategies to survive in this tough competition. For this Coca-Cola decided to take over Parle, so that the company can take the advantage of Parle’s network. This decision was proved very beneficial for Coke as it had ready access to over 2,00,000 retailer outlets and 60 bottlers of Parle’s network. The marketing strategies which were made by Coca-Cola Company to win the Cola war in 1990s had been very successful as Coca-Cola Company had a total market share of 48.3% in 1998. So, the Indian soft drink industry saw a dramatic change in the decade of 1990s. All the companies were trying to win the battle by making good marketing strategies. These days Coke and Pepsi are using the 4Ps of marketing mix (Price, Product, Place and Promotion) in such a way so that a good quality can be provided to the consumers at a reasonable price to attract the consumers towards their brands.
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COMPANY PROFILE Coca-Cola Enterprises, established in 1886, is a young company by the standards of the Coca-Cola system. Yet each of its franchises has a strong heritage in the traditions of Coca-Cola that is the foundation for this Company. The Coca-Cola Company traces it’s beginning to 1886, when an Atlanta pharmacist, Dr. John Pemberton, began to produce Coca-Cola syrup for sale in fountain drinks. However the bottling business began in 1899 when two Chattanooga businessmen, Benjamin F. Thomas and Joseph B. Whitehead, secured the exclusive rights to bottle and sell Coca-Cola for most of the United States from The Coca-Cola Company. The Coca-Cola bottling system continued to operate as independent, local businesses until the early 1980s when bottling franchises began to consolidate. In 1986, The Coca-Cola Company merged some of its company-owned operations with two large ownership groups that were for sale, the John T. Lupton franchises and BCI Holding Corporation's bottling holdings, to form Coca-Cola Enterprises Inc. On an annual basis, total unit case sales were 880,000 in 1986. In December 1991, a merger between Coca-Cola Enterprises and the Johnston Coca-Cola Bottling Group, Inc. (Johnston) created a larger, stronger Company, again helping accelerate bottler consolidation. As part of the merger, the senior management team of Johnston assumed responsibility for managing the Company, and began a dramatic, successful restructuring in 1992.Unit case sales had climbed to 1.4 billion, and total revenues were $5 billion
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MISSION, VISION AND VALUES The world is changing all around us. To continue to thrive as a business over the next ten years and beyond, we must look ahead, understand the trends and forces that will shape our business in the future and move swiftly to prepare for what's to come. We must get ready for tomorrow today. That's what our 2020 Vision is all about. It creates a long-term destination for our business and provides us with a "Road map" for winning together with our bottling partners. Our Mission Our Road map starts with our mission, which is enduring. It declares our purpose as a Company and serves as the standard against which we weigh our actions and decisions.
To refresh the world...
To inspire moments of optimism and happiness...
To create value and make a difference
Our Vision Our vision serves as the framework for our Road map and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality growth.
People: Be a great place to work where people are inspired to be the best they can be
Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people’s desires and needs
Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value
Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities
Profit: Maximize long-term return to share owners while being mindful of our overall responsibilities. 4
COKE IN INDIA Coke gained an early advantage over Pepsi since it took over Parle in 1994. Thus it had ready access to over 2,00,000 retailer outlets and 60 bottlers. Thus Coke had greater than Pepsi because it had ready access to the Parle network. For example in 1994 Pepsi had 20 bottlers to serve the entire country while Coke had Parle’s 60 bottlers. In an important market like Delhi Pepsi had just one bottler while Coke had four. On the other hand Pepsi had taken over the Dukes Mangola of Mumbai. In 1993, Pepsi Foods Ltd. had control over the Rs. 1,100 - Crore Indian Soft Drinks market. At that time, the soft drinks trycoon Ramesh Chauhan, was heading the Parle group and at that time was deciding to explore the possibility of selling his best rolling brands to Coke, rather than to Pepsi. Pepsi had entered the market 3 years before Coke did. Before the Coke-Parle tie-up in '93- Ramesh Chauhan had 2 options before him- (1) to stick around, fight it out again and hopefully, continue with his number one position. (2) To sell out to Coca-Cola for a good return. This risk of losing out to one of the multinationals, eventually, seemed to be throwing up the second alternative.
Ramesh Chauhan told
business world (India's most popular business magazine) that "it is better to seek a compromise than to fight a lone battle". But he was wisely simultaneously taking steps to safeguard his market share. In a few months, Parle's products will be launched in 250 ml instead the current 200 ml. The indications are that the company will hold the price line. Incidentally, both Pepsi and Coke (if it finally gets in) will cost more than local brands because of the 300% duly on the imported ingredients. However, this scenario was taking place pre-liberalization period and hence implied a very high duty on imported items. Entry of Pepsi and Coke in India or their proposals were at that time being opposed because of the impact of first - strike on the minds of consumers. If Coca-Cola is allowed an easy and quick entry through a window established by the government, there can be no justification for denying similar access to Pepsi Co. Also, there was the most convincing factor for the tie-up, that Parle's Position in the Indian soft drinks market and Coca-Cola's marketing strengths and experience would make an unbeatable combination. At that time according to the world’s most popular and well known magazine, Fortune, had rated Coke as the world's best brand. Even Coke would greatly benefit from the tie-up, as Coke with Parle’s wide spread bottling and distribution network, which was spread over more than a thousand towns and cities and the gradual 5
withdraw of Parle brand would ensure Coke would be the king. Parle's best known brands include Thums Up, Limca, Citra and others were GOLD SPOT and Maaza. Under the agreement, the existing bottlers of Parle Exports would continue to produce Parle brands under the licence from the Coca-Cola Company.
The U.S.
Multinational proposed to introduce its international brands -Coke, Fanta and Sprite at an appropriate time. The Parle bottlers will be bottling these Coco - Cola brands also. The exact nature of Parle, Coca-Cola tie-up is given below: So, logically all brands of Parle as well as Coca-Cola will be marketed together. The only problem being that Parle bottlers would not be able to meet the peculiar quality requirements of Coke. MARKET SHARES IN % FIGURES (2012-13) Pure Drink s; 10% Othe rs ; 4% Pe ps i; 26%
Cok e + Parle; 60%
Model of Brand Selection
Customer buys on value
Value equals quality relative to price
Quality includes all non-price attributes that count in the purchase decision
Product
Customer service
Quality, price and value, are not absolute, but relative to competitors. Quality
Product
Value
Customer Service Price 6
MARKETING MIX
WHAT IS A MARKETING MIX? It is a set of controllable tactical marketing tools - product, price, place & promotion - that the firm blends to produce the response it wants in the target market.
THE FOUR PS OF THE MKT’S MIX PRODUCT Product Variety Quality Designs Features Brand name Packaging Sizes Services Warranties Returns
TARGET CUSTOMERS INTENDED POSITIONING
PRICE List Price MRP Discounts Allowances Pay Period CR Terms
PLACE Channels Coverage Assortments Locations Transportation Logistics
PROMOTION Advertising Personal Selling Sales Promotion Public Relation
Effective marketing would be blending the marketing mix elements into a coordinated programme designed to achieve the company’s marketing objective by delivering value to consumers.
Cola - Cola has always worked upon their marketing mix tools since its entry into India and Coke’s objective has been to strengthen their brand in important segments of the market and to gain a competitive edge over Pepsi brands. 7
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MARKETING MIX OF COCA-COLA Firstly, we will look at how Coca-Cola has used their marketing mix. The marketing mix is divided up into 4 parts; product, price, promotions and place. 1. Product: The product (Coca-Cola soft drink) includes not just the liquid inside but also the packaging. On the product-service continuum we see that a soft drink provides little service, apart from the convenience.
Soft drinks satisfy the need of thirst. However,
people are always different, some want more and others want less. Therefore Coca-Cola has made allowances for that by providing many sizes. We also have particular tastes, and again they have provided several options. The product is convenient, that is - bought frequently, immediately, and with a minimum of comparison and buying effort. The appearance of the product is eye catching with the bright red colour. It has a uniquely designed bottle shape that fits in your hand better, and creates a nicer & more futuristic look. The quality of the soft drink is needed to be regularly high. Sealed caps ensure that none of the "fizz" is lost. The bottles are light, with flexible packaging, so they won't crack or leak, and are not too heavy to casually walk around with. The cans are also light and safe. The product range of Coca-Cola includes:
Coca-Cola,
Coca-Cola classic,
caffeine free Coca-Cola,
diet Coke
caffeine free diet Coke,
diet Coke with lemon
Vanilla Coke,
diet Vanilla Coke,
Cherry Coke,
diet Cherry Coke, 9
Fanta brand soft drinks,
Sprite,
diet Sprite
Sprite Remix
Product Lifecycle of Coke: Product life cycle has four phases 1. Introduction 2. Growth 3. Maturity 4. Decline. Coca-Cola is currently going through the maturity stage in Western countries. This maturity stage lasts longer than all other stages. Management has to pay special attention to products during this stage of the product life-cycle. During the maturity stage, products usually go through a slowdown in sales growth. According to Coca-Cola's 2001 annual report, sales have increased by 1.02% compared to last year. This percentage has no comparison to the high level of growth Coca-Cola enjoyed during its growth stage. To add a little variation Coca-Cola took the Coca-Cola Classic and added variations to it, including Cherry Coke, Vanilla Coke and Diet Coke. Also Coca-Cola went from 6-oz. glass bottles to 8-oz. cans to plastic liter bottles, all helping increase consumption. COCA-COLA
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2. Price: Like any company who has successfully endured a century of existence, Coca- Cola has had to remain tremendously fluent with their pricing strategy. They have had the privilege of a worthy competitor constantly driving them to be smarter, faster, and better. A quote from Pepsi Co's CEO "The more successful they are, the sharper we have to be. If the Coca-Cola Company didn't exist, we'd pray for someone to invent them." states it simply. The relationship between Coca-Cola & Pepsi is a healthy one that each corporation has learned to appreciate. Coca-Cola products would appear, on the shelf, to have the most expensive range of soft drinks common to supermarkets, at almost double the cost of no name brands. This can be for several reasons apart from just to cover the extra costs of promotions, for which no name brands do without. It creates consumer perceptions and values. 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. In India, the average income of a rural worker is Rs.500 a month. Coca Cola launched a 200 ml bottle for just Rs.5, an affordable amount on the pockets of the rural audience. 3. Place: Coca-Cola entered foreign markets in various ways. The most common modes of entry are direct exporting, licensing and franchising. 11
Besides beverages and their special syrups, 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. There are different types of franchising. The type that is used by Coca-Cola Company is manufacturer-sponsored wholesaler franchise system. It is very comparable to licensing but the only difference is that the finished products are sold to the retailers in local market. Coca Cola has managed their company’s marketing and sales strategy within channels. Have you ever considered the significance of the Coke vending machine to the success and profitability of the Coca Cola Company? This channel is direct to consumer and vending machines often have little to no competition and no trade or price promotions. Key Channel Listing
Supermarkets
Convenience Stores
Fast Food
Petroleum Retailers
Chain Drug Stores
Hotels/Motels/Resorts
Mass Merchandisers
U.S. DOD Military Resale retail commands: AAFES, NAVRESSO and DECA
Vending
4. Promotion strategies EYE CATCHING POSITION Salesman of the Coca Cola Company positions their freezers and their products in eyecatching positions. Normally they keep their freezers near the entrance of the stores. 12
SALE PROMOTION Company also do sponsorships with different college and school’s cafes and sponsors their sports events and other extra curriculum activities for getting market share. UTC SCHEME UTC mean under the crown scheme, Coca Cola often do this type of scheme and they offer very handy prizes in it. Like once they offer bicycles, caps, TV sets, cash prizes etc. This scheme is very much popular among children.
DISTRIBUTION CHANNELS Coca Cola Company makes two types of selling 1. Direct selling 2. Indirect selling Direct Selling: -In direct selling they supply their products in shops by using their own transports. They have almost 450 vehicles to supply their bottles. In this type of selling company have more profit margin. Indirect Selling: - They have their whole sellers and agencies to cover all area. Because it is very difficult for them to cover all area of Pakistan by their own so they have so many whole sellers and agencies to assure their customers for availability of Coca Cola products. ADVERTISEMENT Coca Cola Company use different mediums
Print media
Pos material
TV commercial
Billboards and holdings
PRINT MEDIA They often use print media for advertisement. They have a separate department for print media. POS Material
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Pos material mean point of sale material this includes: posters and stickers display in the stores and in different areas. TV COMMERCIALS As everybody know that TV is a most common entertaining medium so TV commercials is one of the most attractive way of doing advertisement. So Coca Cola Company does regular TV commercials on different channels. BILLBOARDS AND HOLDINGS Coca Cola is very much conscious about their billboards and holdings. They have so many sites in different locations for their billboards.
PORTER'S FIVE FORCES MODEL OF COCA COLA BARGAINING POWER OF SUPPLIERS
Most of the ingredients needed for beverages and snacks are basic commodities such as potatoes, flavor, color, caffeine sugar, packaging etc. So the producers of these commodities have no bargaining power over the pricing for this reason; the suppliers in this industry are weak. Bargaining Power of Buyers: -Buyers in this industry have the bargaining power, because main source of the revenue and market share in beverage and food industry are fast food fountain, convenience stores food stores vending etc. The profit margins in each of these segments noticeably demonstrate the buyer power and how special buyers pay diverse prices based on their power to bargain.
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Threat of New Entrant: -There are many factors that make it hard for new player to enter the beverage industry some of important factors are brand image and loyalty, advertising
expense, bottling network,
retail
distribution
fear
of
retaliation
and
global supply chain. Brand Image / Loyalty: -Pepsi and Coke continuously focusing on increasing their biggest beverage and food products, they have built some of the globe’s strongest brands that are loved by consumers throughout the world. Innovative Marketing has leveraged their worldwide brand-building strength to attach with consumers in significant ways and impel the growth globally. These all campaign results in higher amount of loyal customer’s and strong brand equity throughout the world. In 2011, Coca-Cola was declared the world’s most valuable brand according to Interbrand’s best global brand. This makes it impossible for new entrance to enter the beverage industry easily. Advertising Spend: -Cock and Pepsi has very effective advertising campaign, their advertising also represents the cultures of different countries. They also sponsor different games and teams and also featured in countless television programs and films. The marketing and advertising expense was approximately $ 15 billion. This makes landscape very harder for new players to succeed. Bottling Network: -Pepsi and Coca Cola have live and exclusive contracts with bottler’s that have privileges in all over the world. These franchise agreements or contracts forbid bottler’s from keeping competitor’s brands. Coke has the world's largest beverage distribution network; consuming in more than 200 countries enjoys the Coke’s beverages at an average of nearly 1.6 billion servings a day. Coca-Cola is sold in restaurants, vending machine and stores in more than 200 countries. PepsiCo has adopted the globe’s most powerful “go-to-market systems”, serving more than 10 million outlets a week by operating greater than 100,000 different routes, and producing more than $300 million in retail sales per day. They have also purchased some of the bottlers, this makes difficult for new players to get bottler contracts or to build their bottling plants. Retail Distribution: - Coke and Pepsi offers 16 to 21 percent margins to retailers for the space they present. These margins are substantial for retailers and this makes it very hard for the new player to persuade retailer’s to carry their products.
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Fear of Retaliation: - It is very difficult for new player to enter in this industry because; they will be highly retaliating by local players in local markets and in global scenario they have to face the duopoly of Coke and Pepsi. This ultimately could result in price war which affects the new player. Global Supply Chain: - Cock Bill & Melinda Gates Foundation and nonprofit Techno Serve initiated a partnership to facilitate more than 50,000 small fruit farmers in Kenya Uganda to increase their productivity and double their incomes by 2014. Coke has significant opportunities within global supply chain to encourage and develop more sustainable practices to benefit consumers, customers and suppliers. While; it is still in the premature stages of exploring these opportunities and dedicated to the economic vitality and health of the farming communities our supply chain engages.
PEST ANALYSIS OF COCA COLA COMPANY As the leading beverages company in the world, Coca Cola almost monopolizes the entire carbonated beverages segment. Beside it, Coca Cola also maintain their reputation as the leading company in the world using PEST Analysis so that Coca Cola can examine the macro-environment of Coca Cola’s operations. Political When Coca Cola had decided to enter a country to distribute the products; Coca Cola was monitoring the policies and regulations of each country. For the example, when entering Moslems country such as Indonesia or Malaysia, Coca Cola followed the regulation by adding “Halal” stamp in each Coca Cola’s products. In this case, Coca Cola has no political issues in this matter. Economic Coca Cola also has low growth in the market for carbonated beverages (North America). The market growth was 1% in 2004. For stimulating the growth, Coca Cola had spent high budget of advertisement to endorse the customers. Social Nowadays, customers tend to change their lifestyle. Customers more aware about health consciousness by reducing in drinking carbonated beverages to prevent diabetes or other 16
diseases. As a result, Coca Cola’s demand for carbonated beverages has decreased and the revenues also decreased. Thus, Coca Cola diversify the products by adding production lines in tea (Nestea), juices (Minute Maid), mineral water (Dasani and Ades), and sport drinks (Powerade), and others. Technological Because of the developing technology, Coca Cola has advanced technology in producing the products. Then, Coca Cola made innovations by giving flavors to the Coke, such as Cherry Coke, Diet Coke, Coca Cola Zero, Coke with Lime, and others. But, the customers still prefer the original taste of traditional Coke; it can be seen by the high demands in traditional Coke.
STRATEGIES FOR GAINING MARKET SHARE Strategy
When Use
How apply in Market Cost-Implications Place
1. Price
To gain share in a A. Set general market Will product line (a) where price there
is
growth: launching
room (b)
level
lower
gross
below margin by decrease-
for average (“catch share sing spread between in generally strategy)
cost and price for a
a
new B. Lower prices at period of time. product, preferably in specific target Will lower cost as a growth market. customer accounts cumulative volume where reduced prices increases and costs will
capture
high move down volume accounts and experience curve. where competition in vulnerable on a price basis : lower prices enough to keep the business C.
Lower
against
Prices specific
competitions who will 17
the
not
or
cannot
rect
effectively. 2.
New When a new product A. Develop and launch
Product
need
(cost
or the
new
product
performance) can be (Generally ) uncovered and a new B. T product will (a) Arget specific displace existing customers and market products on a cost or segments where the performance basis. or need for the product is (b) expand the market strongest and for a class of product competition most by tapping previously vulnerable and unsatisfied demand. immediate large gains in
share
can
be
obtained. 3. Service To
gain
share
for A.
Improve
specified product lines generally when
service Cost
of
beyond capacity
competitive competitive levels by bolstering
adding and/or service
service levels do meet increasing capacity for systems. customer requirements.
specified product lines. Cost of expanding the B. Target specific distribution system, accounts where including additional improved service will inventories required. gain share and the need
for
superior
service is high C.
Offer
services
additional required
in
general or at specific customers18
information, engineering
advice,
etc. D. Expand distribution system by adding more distribution points. market A. Add salesmen or Salary and overhead
4. Quality When
a
/strength
segment
or
of
additional
of
customers are getting improve call frequency salesman
or
marketin
inadequate sales force above
g
coverage
specific sales representatives to cost
(too
competitive representatives
target Cost of training for calls/month) or inferior territories or at target retraining quality or coverage accounts. Cost of incentive (poor salesmen or B. Sales training program insufficient programs to improve information conveyed existing sales skills, by salesmen)
few levels
in
product and
knowledge,
territorial
and
customer management abilities. C.
Sales
incentive
program with rewards based
on
increases
at
share target
customers or in target market of products. 5.
a) When a market A. Select appropriate Cost of creative work
Advertisi
segment
ng
or
specific media to reach target to create campaign.
and inadequate exposure to customer groups.
sales pro- product, motion
price compared
Production and media or B. Set level and costs benefits frequency of exposure to
service,
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competition
(b)
A of
target
customers
change in the benefits high enough to create offered is made and adequate awareness of needs
to
communicated.
be benefits and counter level of competitive efforts.
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BRAND LOYALTY From a marketing strategy viewpoint, brand loyalty is a very important concept. Particularly in today's low-growth and highly competitive market-place, retaining brandloyal customers is critical for survival; and it is often a more efficient strategy than attracting new customers. Indeed, it is estimated that it costs the average company six times more to attract a new customer than to hold a current one. Brand loyalty is often thought of as an internal commitment to purchase and repurchase a particular brand. As a behaviour phenomenon brand loyalty is simply repeat purchase behaviour. Both cognitive and behaviour approaches to studying brand loyalty have value. We define brand loyalty as repeat purchase intentions and behaviours. Brand loyalty may be the result of extensive cognitive activity and decision making. Brand-loyal behaviour may occur without the consumer ever comparing alternative brands. Decisions have to be made about where and when to purchase the product; some knowledge of the product and its availability must be activated from memory; intentions to purchase ft and satisfaction influence the purchase behaviours. i)
Undivided brand loyalty is, of course, an ideal.
In some cases,
consumers may purchase only a single brand and forego purchase if it is not available. ii)
Brand loyalty with an occasional Swatch is likely to be more common, though. Consumers may switch occasionally for a variety of reasons: their usual brand may be out of stock, a new brand may come on the market and tried once, a competitive brand is offered at a special low price, or a different brand is purchased for a special occasion.
iii)
Brand-loyalty switches are a competitive goal in low-growth or declining markets. However, switching loyalty from one to another of the brands of the same firm can be advantageous.
iv)
Divided brand loyalty refers to consistent purchase of two or more brands.
v)
Brand indifference refers to purchases with no apparent repurchase pattern. This is the opposite extreme from undivided brand loyalty. While we
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suspect total brand indifference is not common, some consumers of some products may exhibit this pattern. Developing a high degree of brand loyalty among consumers is an important goal of marketing strategy. Yet the rate of usage by various consumers cannot be ignored. For simplicity, we have divided the dimensions into four categories of consumers rather than consider each dimension as a continuum. Brand Loyalty and Usage Rate Brand Loyalty Brand-Loyal, Light Users
Brand - loyal, Heavy users
Light Usage
Heavy Usage BrandIndifferent,
BrandIndifferent,
Brand Indifference
The above figure shows that achieving brand-loyal consumers is most valuable when the consumers are also heavy users. This figure could also be used as a strategic toot by plotting consumers of both the firm's brands and competitive brands on the basis of brand loyalty and usage rates.
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SWOT ANALYSIS SWOT Analysis of Soft Drink Industry in relation to Coke Weaknesses
Strengths
Weak infrastructure (esp. Cooling)
Carbonated soft drink growth 10-15%
Estimated PCC to increase to 6-8
Small retailers, less shelf space
bottles
Heavy excise duty (40%), recently
have come down a little
Cans have to be imported at high duty rates.
Opportunities
Low
PCC
Threats as
compared
to
neighbouring countries
Growing
rural
Problems of empty bottles
market
internecine
competition
Rising disposable income
Changing consumer trends due to satellite TV.
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Political risks Coke and Pepsi indulging in
CONCLUSION It was observed that Coca-Cola has been perceived quite positively as it has been projected. People are aware of the Brand & Awareness of Coca-Cola is quite high in the market. When a product is launched, avid Coke drinkers choose this soda over any other competitor simply because it's a Coca-Cola product and they trust it. Although Coke has been into controversies, people still prefer to stay loyal to the Brand with Coca-Cola being termed as a more popular brand than Pepsi. Coca-Cola products would appear, on the shelf, to have the most expensive range of soft drinks common to supermarkets, at almost double the cost of no name brands. This can be for several reasons apart from just to cover the extra costs of promotions, for which no name brands do without. 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. In supermarkets and convenience stores Coca-Cola has their own fridge which contains only their products. There is little personal selling, but that is made up for in public relations and corporate image. Coca-Cola sponsors a lot of events including sports and recreational activities.
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