The Complete Marketing Mix of Coca Cola – 4Ps with Full Explanation

The Coca-Cola Company is an American multinational beverage corporation, that became world-renowned soon after its inception in 1892. While the company offers many beverages and has expanded its product portfolio extensively over the years, its name remains to be strongly synonymous with its classic cola drink.

For leading businesses, having a strong online presence is a must and it is one of the reasons why the company invest so much in marketing – marketing has been the main reason behind Coca-Cola’s success. 

In this blog, we shall be discussing the marketing mix of Coca-Cola in detail. Covering all the 4Ps strategies. Let us begin by getting to know the company better first.

Note: Currently, digital marketing has become more relevant than ever since businesses need to have an online business to stay in the game. If you are interested in knowing the latest as well, you should definitely check out IIDE’s Free MasterClass on Digital Marketing 101 by our CEO and Founder, Karan Shah.

Coca Cola Marketing Mix: About Coca Cola

 

 

Coca-Cola is a sweetened carbonated beverage that needs no introduction. As we just mentioned, the product first gained popularity in America and soon after became a worldwide phenomenon. The company’s headquarters are located in Atlanta, Georgia, and its offerings are sold in more than 200 countries.

Specifically in India, Coca-Cola is a leading beverage company delivering a variety of refreshing beverage options to consumers. Since its re-entry in 1993, the Company has built an unrivaled beverage portfolio, including Coca-Cola, Coca-Cola Zero, Diet Coke, Thums Up, Fanta, and Sprite, amongst many others that we shall discuss in-depth now, in its marketing mix.

Coca Cola Marketing Mix: Target Market

If we closely look into the way Coca Cola markets its products, one can clearly state that Coca Cola is meant for users who love thrilling experiences, adventures and are always up for something new. Though the company targets people between 15 – 35, the brand enjoys popularity among every age group and genders.

Apart from this, Coca Cola marketing mix includes compelling ads and creatives that targets families and individuals where the brand positions Coca Cola as a go-to beverage during celebrations, house parties, etc. 

Coca Cola marketing mix also targets diet-conscious people with its signature Diet Coke, a sugar-free and low-calorie Coca-Cola alternative. To go massy, the brand has introduced different sizes with pricing starting from ₹20 to make the product accessible to every section of society.

 

Marketing Mix of Cola-Cola

 

The concept of “marketing mix” refers to a business’s foundation model, which has traditionally focused on product, pricing, place, and promotion. The marketing mix is described as a collection of marketing techniques that a company uses to achieve its marketing objectives in a target market.

It thus holistically covers the marketing and business strategies surrounding a business. Let’s dive deeper into Coca-Cola’s marketing mix.

 

Product Strategy

 

 

Coca-Cola has diversified its products vastly over time. The company offers 500 sparkling and still beverage brands in its portfolio. There are over 3,900 beverage options in total in its product mix. Coca Cola is the largest manufacturer and distributor of non-alcoholic beverages in the world. The brand sells concentrate to authorized bottlers.These bottling partners produce the final drinks and sell them in retail stores and through vending partners to the brand’s customers.

Although Coca-Cola, the company’s flagship product, is one of the most well-known and valuable brands of all. Coca Cola’s achievement is procured with the help of the brands under it and the company’s comprehensive product portfolio. Apart from the carbonated soft drink, Coca Cola produces, owns, and distributes sparkling and still beverages. The brand launched its flagship product in several variants, such as caffeine-free, diet, zero sugar, vanilla, cherry sugar-free soft drinks, etc.

The following are some of Coca-most Cola’s well-known brands:

• Coca-Cola- It is the world’s most popular and highest-selling soft drink, as well as one of the most recognizable brands.
• Sprite- This is another popular soft drink with a lemon-lime flavor that was first produced in 1961.
• Fanta- Is the Coca-second-oldest Cola brand, having been created in 1940. It comes in a signature orange flavor.
• Diet Coke- In several markets, Diet Coke is referred to as Coca-Cola Light. A calorie and sugar-free soft drink. It was first introduced in 1982.
• Coca-Cola Zero: Introduced in 2005, this sugar-free beverage became a million-dollar brand in 2007.

 

The product mix of Coca Cola includes:

• Carbonated Soft Drinks
• Non-Carbonated Beverages
• Energy Drinks
• Water and Enhanced Water
• Sports Drinks
• Dairy and Plant-based Beverages
• Ready-to-Drink Beverages

 

Price Strategy

 

 

Coca-Cola marketing mix follows a price discrimination strategy in its marketing mix. This means that they charge different prices for products in different segments. The beverage market is considered an oligopoly, with a small number of sellers and many purchasers. And Coca-Cola and Pepsi are their two most powerful brands. Hence, Coke products are priced similarly to Pepsi products in the same segments.

Coca Cola aims to drive sales to its flagship product, Coca Cola carbonated drink as it is one of the beverages by company meant for common masses. Coke bottles are sold in different sizes of 13.2 fl oz, 2 liters, 7.5 fl oz, 12 fl oz, and 20 fl oz, etc., so that it can be purchased for different requirements and is consumed by a large number of people. 

One of the things to notice about the brand is its strategic pricing strategy. Coca Cola’s pricing is generally based on  market demands, competitive landscape, and consumer perception. By doing this, the company ensures to remain accessible and aspirational across global markets.

Consumers in developing nations like India are price sensitive and may flip if Coca-Cola prices its goods too high in comparison to Pepsi in a certain segment. As a result, both parties agree to preserve price parity in each segment. Coca-Cola also provides discounts on bulk purchases by bundling items.

 

Different points to consider to understand how Coca Cola marketing mix uses different pricing strategies:

(a) Market Penetration Pricing:To establish a strong foothold in the market, Coca Cola marketing mix includes penetration pricing where at times, the company prices its products generally low compared to its competitors. This gives them a chance to increase their market share and attract customers.

(b) Psychological Pricing: This is one of the common pricing strategies used by different brands. Here, Coca Cola prices its products just below a round number (e.g., ₹19 instead of₹20). This initiates impulsive buying among the users giving them a sense of security that they’re spending less while making the purchase. 

© Promotional pricing: Coca Cola heavily uses promotional offers and discounts to price its products. The company offers discounts, bundle offers, and seasonal pricing to get the competitive edge and boost its sales.

(d) Product line pricing: As the company has a diverse portfolio of products, they price their products differently to cater different customer segments. The massy products like Coca-Cola are priced competitively compared to its premium products like diet or sugar free coke.

 

Place and Distribution Strategy

Coca-Cola, which has been in business for more than 130 years and operates in more than 200 countries throughout the world, has thus amassed a massive distribution network. Their place strategy is highlighted by their extensive distribution network. The Coca-Cola Company manufactures the beverage using its patented formula and distributes it to bottlers across the world.

The company controls the brands and is in charge of consumer brand marketing campaigns and manufacturing and selling concentrates, beverage bases, and syrups to bottling plants. Their bottling partners then manufacture packages, and merchandise, and distribute the finished branded beverages to their vending partners, who finally sell them to consumers.

Its products can be found in practically every retail shop and supermarket. Coca-Cola products are sold at 2.5 million stores in India. Their products are also distributed in a variety of hotels and restaurants around the world.

 

Promotion Strategy

Coca-Cola is the gold standard in terms of advertising and branding. Coca-Cola’s promotion strategy focuses on aggressive marketing through ad campaigns using media channels such as television, online commercials, print media, sponsorships, and so on. Coca-Cola sponsors important events such as American Idol, BET Network, NASCAR, NBA, NCAA, Olympic Games, and FIFA World Cup, among others.

Let’s understand Coca Cola marketing mix promotion strategy in detail:

Heavy use of traditional marketing mediums: Coca Cola marketing mix heavily uses traditional platforms like billboards, radio ads, television ads, etc to market its products. The brand is highly creative with its ad campaigns and tries to include a sense of emotional touch with its tv commercials.

 

Use of digital platforms: The brand is highly active on social media channels like Instagram, FaceBook, Snapchat, etc and other digital channels to market and promote its products. Apart from this, Coca Cola focuses on building a community of its loyal customers to build credibility. 

To keep the social channels engaging,Coca Cola posts various UGC content, v=filters, games etc to keep its audience hooked to the social accounts.

 

Sponsorships: Coca Cola leaves no chance to sponsor events where they can grab eyeballs of its target audience. The brand has sponsored events like American Idol, BET Network, NASCAR, NBA, NCAA, Olympic Games, and FIFA World Cup to promote Coca Cola.

Strategic Tie-ups: To build the taste of Coca Cola, the brand has tied up with McDonald’s to serve Coca-Cola soft drinks in its outlets.

Out-Of-The-Box Campaigns: Coca-Cola started the “Taste the Feeling” campaign in India in March 2016, intending to remind people of the joy and happiness that Coke delivers to their life. Coca-Cola has evolved into a mass-market product that is expected to be available at any time, anywhere.

In February 2023, Coca-Cola India launched a fresh advertising campaign for their product Coca-Cola Zero Sugar, titled “Best Taste Ever?”. The campaign stars popular Bollywood actor Tiger Shroff. In the video, Shroff appears to be skeptical about the taste of a beverage that claims to contain no sugar. However, after taking a sip, he is pleasantly surprised and can’t seem to put the drink down. This advertising campaign featuring Tiger Shroff has generated buzz and increased brand awareness for their product Coca-Cola Zero Sugar. By utilizing celebrity endorsement, the company aimed to appeal to a wider audience and create positive perceptions of their brand. This campaign is an example of how elements of the promotion mix, such as advertising, can be used to achieve marketing objectives and potentially contribute to revenue growth.

 

Key Takeaways From Coca Cola Marketing Mix

With groundbreaking marketing strategies, no doubt that the company has laid a solid groundwork for Coca Cola marketing mix. Generally soda manufacturers open a store to promote and sell their products which requires large capital but instead, Coca Cola opted for partnering with global bottlers to package and distribute their products. As a result, those authorized bottlers will be the ones coordinating with their customers to sell Coca-Cola’s products to the end-users.

Let’s quickly run through some important points that businesses can learn from Coca Cola:

(a) Implementing and evolving marketing strategies as and when required.

(b) Introduction of different SKUs to cater to wide range of audience

© Using effective pricing policy

(d) Maintaining customer relations with excellent brand communication and top-notch ORM system.

Conclusion

With that last of the 4Ps strategy, our marketing mix comes to an end. Coca Cola is clearly an extremely successful company that has nailed its product offerings in terms of quality and variety both. Their pricing is affordable and caters perfectly to their audience and industry. Their geographical reach as we saw is commendable, thanks to the many decades of experience under their belt. With its continued promotions and signature branding, the company is sure to enjoy its distinguished position in the market. 

Companies such as Coca-Cola are heavily reliant on their success through marketing and are always looking for talented digital marketers. If this interests you, you should learn how to create impactfully and targeted digital marketing campaigns by learning the up-and-coming field that is taking the world by storm. There are many Online Digital Marketing Courses in India that can help you upskill yourself in various aspects of the rising digital marketing field.

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