Jhulelal Institute of Technology
Koradi Road , Nagpur
Prof. Sangita Kukreja
Assistant Professor, Department of Business Management,
Jhulelal Institute of Technology, Nagpur
Started In 1886, as a small patented medicine company based in Atlanta, USA, to the world’s largest soft drink manufacturer. Coca-Cola with its rich history and legacy of over a decade, with its exceptional marketing strategies and a supreme portfolio consisting of over 500 beverages such as Sprite, Thumps Up, Maaza, Minute maid and mineral water brand like Kinley known in India as Hindustan Coca-Cola Beverages (HCCB) has been in Indian markets since 1987. Catering to the thirst and cravings of millions of Indians annually, contributing a significant amount to the Indian economy in terms of investments and employment opportunities. Coca Cola has come a long way using aggressive mass marketing strategies being the pioneers in the field of adaptive marketing or marketing with accordance to the consumer behavioural trends is what built a strong brand image for coca cola especially in the Asian markets. Coca Cola is the one brand which is recognized by everyone around the globe. When we talk about brand equity then it is its value & it’s about stories, memories, associations, and human connections (although of course, these connections would have been very carefully and deliberately engineered by talented marketers over many years and countless board meetings).This is something that Coca-Cola has been the master of for over 100 years. This equity is derived from people’s willingness to pay a premium for the brand and an unwillingness to accept substitutes. Coca-Cola’s marketing strategy has always been to associate happiness, positivity and the good life with their products, & that’s how they are able to create high TOMA (Top of mind awareness).In this research paper, we analyze the different marketing strategies being used by coca cola, especially influence and usage of social-media and digital marketing techniques and the extent to which it is able to influence a consumers behavior and how he or she reacts to the changing product or price made by the coca cola. We analyze the impact of coca colas strategies from two points of view one that of a customer and second the company itself. We drew up our conclusions based on 100 reliable respondents who are normal residents of India who have been active consumers of Coca Cola as a product keeping aside other products like Thumps Up and Maaza. What we could conclude was price wasn’t a major factor but the brand image created as an effect of advertisements and mental satisfaction after consumption was the majorbehavioural factor for purchasing which the millenniums exhibit.
Keywords: portfolio, consumer behavior, social media, digital marketing
A customer is generally understood to be the person who makes the decision to purchase a product or who pays for it. In fact products are often bought by one person for consumption by another, therefore the customer and the consumer need not be the same person. The Coca Cola company who is manufacturer, retailer and marketer of the nonalcoholic beverage concentrates and syrups focuses on the consumers rather than the customers. Being a company which is American by origin and with a rich history starting from the year 1886 it must have been a very dynamic firm which changes its strategies and tweaks its products according to the needs and wants of the consumers. In the recent market coco cola has identified what the customer’s value in the market. “This generation values the openness to new culture and sense. Even though they value new cultures they have a love for their local products and want to support their neighborhoods and communities and keep the wealth within their region itself. In a way you can say that they are moving back to a collectivist culture*3”. With the collectivist mindset they want to revive folk traditions and rituals starting from food to spirituality. Customers now follow the YOLO concept where you only live once, and they want to experience personalized by unique experiences which allow them to express their identity. The customers have also become health conscious because of their increase in awareness towards the world as a whole.
The objectives of this paper are twofold. First, we outline the marketing strategies of Coca-Cola which consist of current and upcoming social media marketing trends among the millenniums. We will also look at how Coca-Cola is highlighting its product and using the brand name it has built for itself as a competitive advantage. Secondly, we outline the characteristics and consumer behavior pattern with CocaCola being the company of our focus. We look at the consumers perspective and the effectiveness of Coca-Cola’s marketing strategies.
Is social media marketing the best source of marketing for Coca-Cola? Ho – Social media marketing is the best way of marketing for Coca-Cola. HA – Social media marketing is not the best way of marketing for coca-cola.
The scope of the study
The study claims the effective impact of the unconventional yet creative marketing strategies adopted by Coca-Cola segmented towards the Indian market and targeted towards the millennial whose ages range from 15-25 and positioned as a beverage suiting multiple occasions whether be it family gatherings or friendly outings. The study aims to create an equilibrium between the segmentation and targeting of different types of customers in a specific geographic location and expresses the effect of different types of marketing strategies on different types of customers subjected towards the manner in which the product, in this case,Coca-Cola, is positioned in the market. The study, thereby, also explains that the millennial are the targeted customers which are the most responsive individuals in the market for ideation beverages such as Coca Cola which is at the top of the industrial food chain as per customer preferences because of the popular brand image and the footfall that the company
This paper analyses the six effective global strategies that are necessary for firms to become successful while expanding in terms of differentiation, marketing, distribution, collaborative strategies, labor, management strategies, and diversification. The paper also focuses on Coca-Cola’s operations in the USA, China, Belarus, Peru, and Morocco. Coca Cola has planned successfully in implementing strategies regardless of the country but didn’t effectively utilize all of them in each of the above-mentioned countries. The market has seen Coca-Cola expanding internationally over the last 50 years. Talking about the international differentiation strategy, branding, cost leadership expand, successful positioning, advertising slogan and patriotic image of Coca-Cola in the market help it to maintain loyal customers in the USA. In China, Coca-Cola had to revise its name to attract the customers.
Research Methods and Methodologies
A total of 100 samples were selected from different populations belonging to the millennium category. They were different populations as they belong to different universities and various universities have various cultures followed that it impacts their buying strategies. For example, Christ (Deemed to be University) does not allow the students to drink coca- cola or any other fizzy drink for that matter in the campus. This will lead to students wanting to drink fizzy drinks even more as it is not something that is approved of by the management and being in the rebellious age the millenniums are currently residingin, it is a big driving factor. The samples have been collected in such a way that it was only distributed to the millenniums who drink coca- cola. We have used probability sampling and under this, the technique we have adapted is the stratified sampling technique where proportional sampling was used. The sampling distribution strategy we have used is sampling distribution of the mean. The reason we have chosen this method is because it takes all the possible means of random samples of the given sample of the population in which its 100 in our case. When we used this method we were able to cover aspects of the central limits of the theorem. Since the sample size is 100, the curve will be more like a normal distribution curve, irrespective of the shape of the parent population. The parent population, in this case, would be the young and the middle ages people. As the sample size remained 100 we didn’t need to worry about the binomial distributions beginning to assume the characteristics of the normal distribution.
The market research we conducted had 150 respondents in total out of which 50 respondents had to be removed as they did not give proper answers and so it could not be used to be a part of our analysis. Through this research, we have understood that coke has become like chai for Indians as 62.4% of the consumers drink Coca Cola at least once a week but the downside of this is that 30.7% have never drunk CocaCola or it’s rarely on various occasions that they consume coke. There is approximately 8% of our target sample that consumes Coco- cola on a daily or alternate day basis.
The sales of Coco-cola seems to be more dependent on the number of units they sell rather than the quantity of Coca Cola they sell. There are barely any customers who buy the 1500ml Coca-Cola bottles, most of this generation’s customers stick to buying Coca Cola as per their cravings, it’s like a one-time thing, where they purchase it for that moment’s satisfaction and are always willing to come back and repurchase it when they crave for it again. In a way, we can say that the millennia want the maximum marginal utility that they can derive from a product. That is the driving force, to get the most satisfaction out of one unit of the product.
Hypothesis Testing Outcome
- Social media marketing is the best way of marketing for Coca-Cola.
- Consumer Satisfaction does have a direct relationship with the price of the product.
- Age does have a significant impact on the consumption of Coca-Cola.
- To analyze the customer behavior of a particular target market segmented and restricted in a specified geographical location.
- The effectiveness of unconventional marketing strategies on millennial.
- The ability of a company to capitalize on its footfall and brand image.
- Risk management and protection of brand image through popularity in majority customer population.
- Knowing the seasonal effects on the sales of the product.
- Analysing the fast-paced customer trend changes in the
Limitations of the study
Every paper has a scope of improvement and every paper with the reference to other papers has touched upon a new aspect of the research conducted on the specific topic and has opened its doors to a whole new forum for research. When a whole new form of research is opened there are definitely limitations that lead to more papers in that field.
The limitations of this paper would be the lack of resources as we did not have any funding for this project so other than the data we gathered we were not able to look into other marketing aspects of coca- cola. Choosing a specific company represents one of our major limitations because it did not allow us to compare the efficiency of the competitors marketing strategies. The collection of data also posed as a limitation because we had to constrict this research to India instead of the international marketing strategies of Coca Cola. We also had biased errors is our paper due to the faulty process of selection because the entire target audience who were a part of the sample did not respond to the questionnaire. We faced Non-Sampling errors when the respondents did not take the questionnaire seriously and did not provide accurate information. Out of the 150 respondents we had to scrap 50 respondents as they were not valid answers to the questions and were done for the sake of it.
Through this research paper, we have concluded that millennials are easily influenced by social media marketing but they are extremely influenced during the festive season because of the number of online offers that happen during those periods. India being the price sensitive market it makes its customers extremely sensitive to the minute changes in the prices of a product which leads to a decrease in demand if the price is high and an increase in demand if the price is low. Through our study we understood that a direct relationship exists between the price of a product and consumer satisfaction. Looking at the aging aspects, the major consumers of Coca-Cola are the youth and teenagers whereas the middle aged and above consumers are health conscious, making Coca-Cola an unfavorable drink for them, engaging them in consumption of healthy drinks like normal tea, green tea and lemon tea. The millennials have come to a point in their life where their satisfaction is what matters to them most and if the product of their desire is moderately priced, they are willing to pay for it and get the satisfaction. Coca-Cola has also been noticed for not providing any promotional offers which is making it lose its customers because all fizzy drinks give the customers the same satisfaction, but most importantly customers have been attracted to it because of its taste and brand, so it will have to use these factors to its advantage to remain as a duopoly in the market.
The future researches should focus on the international marketing aspects of Coca Cola while reviewing the additional strategies for global expansion. The quantitative analysis should focus on the entire industry rather than taking just one company. This will give the future researchers an outlook of that entire industry. The Quantitative analysis should be utilized in terms of monitoring their performance levels while using different strategies. Suggestions to Coca- Cola The Company can now focus on its sensory marketing as it’s an important aspect of marketing but Coco-Cola has been banking its brand name and brand loyalty.
As many of the papers identified, Coco-Cola hasn’t tapped into the rural markets and the best way for them to increase their market coverage is by increasing their target audience. To attract the customers of the rural market they will need to change their marketing strategies and move from massmarketing to a narrow minded mass marketing as rural people still believe in a lot of things being a taboo starting from a girl with short clothes being the model for the advertisement of Coca Cola.
The advantage that Coco-Cola will get by moving to the rural areas is that Coca Cola will become a symbol of status where the everyone drinks. The Indians have this mindset that if people in the Rural Areas can afford a coke why can’t we. This leads Coca Cola being a status symbol which has a stronger effect than their brand name.Coca- Cola should focus on its pricing strategy and move from competitive pricing strategies to providing more discounts to the customers which gives them an incentive to buy the product that they like. This also gives the customer a feeling that they got more than they paid for. Coco-Cola has catered to its customers by providing more variants as per their needs but they have not kept the price range in mind. If the price is too expensive regardless of what satisfaction it provides the customers, customers who are price sensitive like India will not be attracted or motivated to buy the product. This may even lead them to other alternatives.
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