Ch. 10 - Product Concept

Coca Cola is a world wide company that sells ready to drink, non- alcoholic, soft beverages. Coca Cola's product is classified as business/industrial product because the company, in general, produce syrup concentrate which sold to the bottlers companies around the world; the bottlers partners produce the finished products and sell them to retail stores which then sell the products to the consumer for non-business use. However, product is not only tangible good, part of a product is also the advertisings which then can be classified as consumer product because the manufacture companies are the responsible for advertisements straight to the consumer at home for non-business use. 

Coca Cola's product is a convenience product that is "relatively inexpensive item that merits little shopping efforts" (MKTG text book), Coca Cola's product is a soft drink, inexpensive relatively to other competitors and is bought without any shopping effort.

Cola-Cola started to sell in 1899 the primary drink, Coca Cola, for five cent a piece. In the early 1950s the company began to introduce new product items as packages size and types, cans were also first introduced. By 1960s the company introduced different products line as Fanta, Sprite and etc. Today, Coca Cola's product line depth is more than 450 flavors under soft drinks category and six product mix width including: Energy drinks, Juices, Sport drinks, Tea and Coffee, and Water. Coca Cola's product mix is more than 3500 beverages. 

On 1915 a group representing the company asked glass manufacturers to design a package that will be easy to distinguish from its competitors. By 1916 the glass bottle was introduce with its unique shape that can be identify even at dark and became the most recognize icon in the world. The contour bottle became one of the few packages that were ever got trademark status by the US patent office. The package label is a "persuasive labeling" that focuses more on promotional logo that gives information to consumers.

Coca Cola earns approximately 75% of revenue from international sales and can be called a global brand.

Ch. 18 - Sales and Personal Selling

In 1888 Asa G. Candler took control over Coca-Cola and put all his energy to market and advertises the product. The biggest part in the advertisement plan and budget was focused and spent on Point- of- Purchase distribution such as calendars, magazines, newspapers ads, and etc.
Since then Coca-Cola became the largest manufacturer, distributor, and marketer of non-alcoholic beverages.  
Coca-Cola is a world-wide company with enormous amount of diverse consumers from different places around the world. Coca- Cola adjust prices, advertisements, sales promotion programs, products innovation, new packages, new vending and dispensing equipment, and brand and trademark development and protection to sustain and lead among the competitors. Coca-Cola is considered a convenience product as it is relatively inexpensive (the prices are mostly determines by the retailers of the products) that can be found everywhere. The res and white packaging of Coca-Cola products is world recognized.

Here are few examples from different countries around the world for sales promotion,

- In 1999 the Coca-Cola and diet Coke 2litre bottle were introduce in the Republic of Ireland and Northern Ireland. Part of the marketing plan was price promotion, single 2litre bottle in half price (99p), and national shopping mall sampling. Since it was launch, the Coca-Cola's new bottles achieved huge success.
- In Israel during the holiday, usually Sep-Oct, Coca-Cola promotes 6 or 3 bottles packages in lower prices, the packages include blessings for the holidays. In addition, every year the Coca-Cola Company produce huge event called "Coca-Cola village" for young people, its 2 days event with music and food that many singers, actors and famous people perform.


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The new freestyle fountains with the touch screen allow visitors the option to create their own customized drinks between 120+ beverages. The new machine distribute in 437 restaurants of firehouse subs.
- In India, there are promotions as:
   * Buy two 2litre bottles get 1litre bottle free.
   * New media in which a special code is at the back of the cap and you need to text to code to a     
      specific number and there will be a lucky draw out of it.
    * Vouchers and coupons to get free bottles.
    * Buy Dominos Pizza and get 500ml bottle of coke.

Those are few examples from the variety promotions Coca-Cola has been doing as part of the marketing and advertising the biggest non-alcoholic, ready to drink, Coca-Cola Company.

Ch. 17- Advertising and Public Relations

Coca- Cola is the biggest company that sells soft, ready to drink, non-alcoholic beverages. Coca-Cola is one of the most persistent and loved brands from 1888.  Coca-Cola became well-known because of its aggressive sells, aggressive advertisement. The strategic planning of Asa G. Candler was to advertise everywhere and all the time. As I spoke in chapter 2, Strategic Planning, Coca-Cola has been using the best talented photographers and producers to design and produce the most colorful, attractive commercials, calendars, ads and etc.
Advertisements have huge influence on our society, people in general and especially teenagers follow images and icons they see in commercials, ads, movies, radio and etc.  Coca-Cola spent billions of dollars for advertisements, to touch those teenagers and to become an well-known icon around the world. Coca-Cola spent over $1.6 billion in the late 1990s. Advertising Age estimated Coca-Cola's global advertising expenditure of $$2.24 billion in 2009, world's number 6 advertiser.
From Richard Brodie, "Virus of the mind: The New Science of the Meme, "in psychology, the word conditioning often refers to implementing association-memes. When the Coca-Cola bottling company pays millions of dollars to show you how young people in bathing suits having a good time drinking their products, they are conditioning you to associate good feelings with their brands". Coca-Cola over the years has been focuses on feelings and positive livings rather than the product itself. The images the company created along the time, before and after the war, provided the foothold it's aimed for- an American Icon.

As it started, around 1910.

The well-known Santa, 1930.

The famous Pollar Bear, 1990.

Coca-Cola of our days, 2000.



Add to chapter 15- Retailing

I visit retailing store called Duane Reade, which sells Coca-Cola among many other products. When I crossed the aisles in the store to get to the refrigerators for drinks I came right across my product- Coca Cola. Between 12 lines of different beverages (juices, alcoholic drinks, coffees, soft drinks and etc) Coca-Cola was right in front of me, a whole line only for Coca- Cola beverages. It has standard Coca-Cola, diet Coca-Cola, cranberry Coca-Cola, Coca-Cola zero, Cherry Coca-Cola. As I go over the different lines with different beverages I noticed in the end there was another line with boxes that you can by 6/9 cans of Coca-Cola or 6 large bottles of standard Coca-Cola or Coca-Cola diet.

In another retailing store, small newsstand that sells snacks and soft drinks in the subway, I saw 5 different beverages; water, orange juice, ice tea, Pepsi can and Coca-Cola bottle.

Ch. 15 - Retailing

Coca-Cola is a worldwide company that using bottling partners who manage the product in different locations around the world. As I mentioned in chapter five, Coca-Cola does not own or control its bottling partners, the company franchisors its products to bottling partners since 1899. The company system manufactures and sells concentrates, beverage bases and syrups to the bottling operations. Coca-Cola owns the brands and responsible for consumer and to the market brand.The bottling operations manufacture, package, merchandises and distribute the final beverages to consumers and vending partners (I will expand next paragraph) who then sell the products to customers. (From the "Coca-Cola System",
http://www.thecoca-colacompany.com/ourcompany/the_cocacola_system.html).

(Muhtar Kent in the middle) 

Muhtar Kent, CEO and chairman of the Coca-Cola Company said, "The Coca-Cola Company remains committed to continuously involving and advancing our franchise system in line with unique needs of each and every market", Coca-Cola company is working close with the bottling partners in order to maintain the greater nonalcoholic ready to drink number one company.

Coca-Cola sells its products everywhere. It does not have special store that customers can shop only Coca-Cola products. Coca-Cola consumers are grocery stores, restaurants, street vendors, mass merchandisers, convenience stores, drug stores, movie theaters and amusement parks who then sell the products the costumers.

Coca-Cola does not have a special store on NYC; it does have a place on 711 5th ave, new york, NY, but it only offers pictures in the entrance and offices without access. There is a unique store on 121 Baker Street,  Atlanta, GA.

In this store the company offers a tour to explore the inside the "World of Coca-Cola" through interactive experience complete with video highlights, images and stories. http://www.worldofcoca-cola.com/

                                                  

Ch. 6 - Consumer Decision Making

According to the MKTG text book, we can predict and follow the process of a costumer purchase a product which calls "Consumer decision- making process". The process involves all the steps for making a purchase, from the first thinking about the product through all the way of buying it and after. As for Coca-Cola, Coca-Cola is a soft nonalcoholic sweet drink that made as a self quenching and to refresh the world.

Coca-Cola is not a "need" it’s a "want". Coca-Cola promotes its beverages everywhere and all the time, therefore external stimulates are influences by outside sources; friends, media and etc.

Coca-Cola is trying to create an image that will fit different occasions; classic parties or casual meetings between friends. It can be use as thirst quenching or satisfy pleasure. In today society, people follow icons and bands, people want to follow models that we see on TV or hear in the radio. Therefore Coca-Cola is using commercials and presenting types of people that the target group feels related too; happy families gathering for dinner, party with friends and etc.

We cannot ignore the fact that the Coca-Cola consider differ in different countries, cultures, communities or even families. For example, in my family there's no dinner without a bottle of Coca-Cola, even last week my family had 20 guests for the holiday and we had a "holiday box" with 9 bottles, for the holiday spirit. However, when I moved to NYC to live with my boyfriend I didn’t buy Coca-Cola even once because after I came to U.S. I noticed the fast food industry and the obesity affection on the society. I stopped drinking Coca-Cola.