Ch. 7 - Business Marketing

Coca-Cola Company works together with more than 300 bottling partners globally and operates the most extensive beverage distribution system in the world. Electronic commerce had become a preferred method of doing business for the grocery industry and therefore the company developed a high volume site for Business to Business e-commerce (B2B). Internet has made it possible for Coca-Cola Company to build a strong relationship with its bottling partners, to increase collaboration and efficiency, and to better understand the costumers' needs.


Coca Cola Company is based on Business to Business marketing, which means that the company provides goods that bought for a resell rather than personal use. Coca Cola Company first started its bottle agreement on 1899 and today it has 300 bottling partners worldwide. The company manufactures and sells concentrate, beverage bases and syrups to the bottling operation which than manufacture, package, merchandise and distribute the final product to the costumers and vending partners that than sell it to the final costumers. The Coca Cola Company owns the brand and responsible for the marketing initiatives. (More detailed on chapter 15).


Except the bottling partners, Coca Cola Company has strategic alliances with different large companies to leverage their brand. Steven Heyer, the new head of strategic planning, said in FORBES' interview on 2001: "The question we will be asking from here on out is, can we do it faster, smarter or cheaper? If not, we partner."  
Here are few examples from Coca Cola's alliances:
1. Apple and Coca cola made iTunes alliances on 2006; Coca-Cola used this initiative to promote their calorie-free Coke Zero brand along with iTunes.
2. The Walt Disney Company has a 47 years alliance with Coca-Cola Company. On September 2002, DASANI water bottles were featured at the Walt Disney’s parks and resorts. DASANI were also served on the Walt Disney cruise lines, and became the sponsor of the Walt Disney’s World Marathon.

3. McDonald's and Coca Cola have a strong alliance based on trust for more than 60 years, Coca Cola products are being sold in 31,000 restaurants over 100 countries.


4. Nestlé Company, Switzerland, and Coca Cola Company have a joint venture since 1991. The companies took advantage of Nestle's well-known brands of coffee, tea and chocolate beverages and Coke distribution system.

5. Procter & Gamble have a joint venture to develop and market innovative juices and snacks since 2001.

"Strategic alliances are now likely to be the cornerstone of Coke's growth strategy." said FORBES magazine. http://www.forbes.com/best/2001/0521/026_print.html .

Coca Cola Company performs large number of alliances with great size companies to strength its operation and to compete better worldwide.
The company's alliances base on commitment and trust.
"Our customers include large international chains of retailers and restaurants and small independent businesses. We work with them equally to create mutual benefit. Together with our bottling partners, we serve our customers through account management teams, providing services and support tailored to their needs." from the Coca Cola Company

Ch. 8 - Segmenting and Targeting Markets

Coca Cola Company is the world’s leading manufacturer, marketer, and distributor of soft beverages. Coca Cola uses "Multisegment" targeting strategy which means that the company has more than single, well- defined, market segment.  It develops a marketing mix for each of the segments. Coca Cola has more than 400 different products line, total of 3,500 product mix.

Geographic segmentation

Coca Cola has drinks that targets different age groups, ethnic groups, sexes, lifestyles, etc. Examples:

- Oasis- Juice made for the younger working adults, between the ages of 20-30. The product is available in different flavors (berry, lemon, and orange tangerine). It’s mostly popular in Britain and Ireland. 

- Coca Cola- the most popular soft drink so far that being sold in most countries in the world. The large demand for its taste and the trend toward healthier lifestyle influenced Coca Cola to produce healthier products such as Coca Cola Zero, Diet Coca Cola, and etc. 

- Coca Cola Zero- targets teens that don't want calories but want the taste.

- Diet Coca Cola- targets adults, between 30-50 who are health conscious but want the taste.

- Powerade- sport drink, targets athletes between 13-27 ages.

- Minute Maide- targets kids and adults from 1 year to 10 and 40 plus. It’s convenience to carry. It targets parents that want their children to drink healthier drinks.

Climate- Coca Cola’s consumption in the summer is 60% than 40% in the winter; therefore, the company's sales are higher in the summer. It also focuses in hot area in the world.

Demographic segmentation

-Age- 15-25 years old and 40 plus.

-Gender- targets both genders with wide variety drinks.

-Income- segments different income level. for example, by packaging: for low level income the company is selling returnable glass bottle; for high level income, the company is selling coke in tins.

Psychographics segmentation

People who are brand conscious will not drink beverages of less known brands. They will try to show their status by drinking Coca-Cola.

The level of education is another factor that the company is paying attention to. In an high percentage education, the company can use advertisements to convey the company massage.

Because Coca Cola is a recognized world brand, people will drink it without hesitate. 

Coca Cola designed to satisfy the consumer’s needs. The company is able to provide drinks for many different target markets: ages, sexes, and etc. The products are sold to diverse population all around the world. In our world today, people want to live healthier lives. Coca Cola recognized this need and begun to produce different beverages that are satisfying those consumers. Coca Cola products are purchased by different classes, but mainly by middle to high level class. In addition, many people today make their purchases decisions based on the company’s ethics and, or social responsibility. Coca Cola gains the trust of its consumers by contributing to the environment in varies ways.

Coca Cola Holidays' Campaign

Coca Cola is a brand that renowned for its iconic Christmas advertising. 
Coca-Cola’s Santa Claus will return for the 80th year with the ‘Holidays are coming’ commercial.
Coca Cola also released limited edition packs of Coca-Cola, Diet Coke and Coke Zero, decorated with illustrations of Father Christmas.

Coca Cola first launched its first QR program in U.S., millions of Coca Cola cups will contain the QR code that supports the brand’s holiday mascot, the polar bear. Consumers who scan the code, which appears on cup distributed by 7-Eleven, will download a Snowball Effect by Coca-Cola app for the iPhone and iPad that turns into a Facebook connected which is a snowball-throwing game. Those who generate the most points in the game will win prizes including iPads and a trip to the Arctic for two. The program runs through March.
The QR code programs is already running in Japan and Germany, but this is the first time the brand has executed one in the U.S..

Ch. 11- Developing and Managing a Product

Coca Cola is a worldwide, ready to drink, non - alcohol, soft drink company. The company evolved during 125 years from one product, coca-cola, to more than 500 brands in 2011, and expanded from only one city to availability in more than 200 countries around the world. 

As we understand from chapter 11, new products are very important to keep growth and to increase revenues and profits. Coca Cola’s heart is innovations, “It is the driving force behind our 3,500 juices, waters, sports drinks, sparkling beverages, energy drinks, teas and coffees” “And it is what makes our cutting-edge marketing connect with consumers around the world every day” (from The Coca Cola Company website).

Example of types of new products innovations:

1. “New product line” - Sprite launches Sprite Tea, new innovative Tea flavorous sparkling beverage in China, the company used massive consumer testing to fine-tune the taste, the right amount of tea essence and percentage of bubbles. 
2. “Addition to existing product line” - New 1.25 Liter Coca Cola package introduce as part of the company’s 125th anniversary celebration.
3. “Improvement or revision of existing product”-  DASANI and Odwalla available in plant bottle packaging nation wide.

Another example for "New- Product Development Process", the coffee drink innovation which introduce by Victor Behrman, head of the group’s competence center for Europe, Eurasia, and Africa,

(The company didn’t talk about the third level, idea screening, and about sixth level, test marketing- it is part of the development). 

1. Idea- the consumption of coffee increasing around the world, home and outside, due to this fact Coca Cola Company decided to enter this market.
2. Building analysis - the company identify the competitors in the past and present in the past and present, the company also makes a research on similar products throughout the world and find a niche on the global market. Than the company partnership with the Italian coffee producer Illy.
3. Development- the key product is Illy ready-to-drink coffee, the company launched on each market the drink with variant coffee power, in the beginning without preservatives and without milk and after in different variations until it got to the maximize satisfaction.
4. Preparation for the introducing of the product - creating legal entity for the partnership, development of supply, packaging, first commercial production under supervision.
5. Commercialization - ensuring the great exposure, focus on availability in retail store, penetration of high quality stores.                                                                              The product is sold in 18 countries.

Ch. 16 - Integrated Marketing Communication

Coca-Cola is using all elements of promotion,
1. Advertisement- Coca-Cola advertise in traditional media such as: TV, news papers, magazines, billboards, bus stops, and etc. the company is also using the new methods such as websites and blogs to supply more information about the company and its products.




2. Public relation- the company has its own website were consumers can view press releases, executive speeches, and statements which addresses law-suits, rumors, stories, and etc. the latest example can be also the World Wildlife Fund, Coca-Cola campaign for the Polar Bear’s home, the company ties in the branded image of “Coke Polar Bear” with the concern for the environment. The company started to manufacture more than 1.4 billion white coke cans, the company will also commited to raise 3 million for the fund between November 1- March 15, 2012. The company will donate 2 million and will rais 1 million from public donation, by texting the package code to 357357 and $1 will donate to the fund.  The Coca-Cola Company


3. Sales promotion- In "My Coke Reward", you can find tons of coupons, rewards, gifts, free vacations, and etc.
4. Personal selling- Cola-Cola has highly trained sales team, the company primary used personal selling for business to business sales. The company sells its products to retail stores using intermediaries, it can also be called Interpersonal communication, direct- face to face communication. Coca- Cola also sells its products to restaurants, part of the restaurants sell only Coca-Cola Coke. 

Coca-Cola uses the internet to promote its product, the company owns a website which allow costumers to become interactive through games, shopping, information how they can help their community, and etc. WWW.livepositivly.com 

AIDA concept, which means attention, interest, desire, and action also takes place in Coca-Cola promotion. When Coca- Cola introduce new product the company is using aggressive sales: on TV, bus stops, magazines, and etc to gain attention. Coca-Cola uses ads with information including ingredients and materials to provoke interests, like diet coke for low- calories’ consumers or 2liter bottle to save money or for convenience. To provoke desire, the company also explains in ads or in its website how the product will satisfy the potential consumer, for example, buy 2liter bottle to save money and if you drinks a lot or buy coke zero if you want to keep your shape. And than Coca-Cola continually advertise aggressively everywhere and explain the benefits of the new product, it also offer concessions like when introducing the new 2liter bottle in Republic of Ireland, one single 2liter bottle in half price, so the potential costumer will take an action and buy it.

Ch. 10 - Add to Product Concept

Product can be only tangible good, service, or idea.
Therefore, Coca-Cola product can be Business/ Industrial- Product or Consumer- Product, depend on the situation. When Coca-Cola company sells the product to retail stores such as: supermarket, drugstore, convenience store, department store, and etc the product is classifies as Business- Product because the retail stores are reselling the products, they bought Coca-Cola for business use. However, when the retail stores sell the product to consumers than the product is classified as Consumer- Product because it bought to satisfy an individual's personal wants.