Coca-Cola's global brand marketing success comes as no gimmick for a brand that has been in existence for over a century. co*ke brand is an industry leader and has utilized numerous marketing strategies to sustain its market share within the beverage industry.
One of such thriving strategies Coca-Cola has employed to maintain its leadership status for so long is the cost leadership strategy (Smartling, n.d).
Due to the fierce price competition from rivals (Pepsi), Coca-Cola's product pricing concerns the market and geographic segment. The beverage market is an oligopoly market (few sellers and large buyers), so firms within the cartel use either a high price or low price strategy to maximize profit (Samploon, n.d.)
Coca-Cola's utilizing this pricing strategy provides them with a major source of competitive advantage within the beverage industry. Even though the coca-cola brand is widely known, they price all their products competitively (Product mix). Though competition is the major reason the Coca-cola brand uses this strategy and other marketing dynamics, another key reason for employing this strategy is to make their products more accessible and affordable. They allow the brand access to a very large pool of customer base all around the world. (Pratap, 2019).
Another key reason Coca-cola uses the pricing strategy is to meet the competitive pricing. Coca-cola effectively uses a low pricing strategy a lot to penetrate new markets that are very price-conscious. They set the prices around the same level as the competitors to enable Coca-cola to be distinct but affordable. They do this to beat the competition on price and raise the awareness of the Coca-Cola brand. The moment (co*ke) has established the brand in the market, Coca-cola repositions to assert itself as the premium brand compared to its numerous competitors (Pepsi, for example). They do this effectively by promoting the brand image through the intangible benefits in lifestyle, group affiliation, joy, and happiness but the marketing strategy still focuses on an affordable premium product (Lumen, n.d.).
Due to the simple ingredients and easy access or availability of the raw material, Coca-cola can easily switch over to another (supplier) and lower the price as the costs are low. Coca-cola has a huge distribution network that allows its product to be accessible globally, thereby increasing profits by reducing costs and increasing market share by lowering prices (Julia, 2011).
References
Anders, J. (2011). Coca-Cola's Marketing Strategy: An Analysis of Price, Product, and Communication. https://www.grin.com/document/232661.
Putting It Together: Marketing Mix. lumen. (n.d.). Https://courses.lumenlearning.com/wmopen-introbusiness/chapter/putting-it-together-marketing-mix/.
Pratap, A. (2019, January 13). Coca-Cola Sources of Competitive Advantage. https://notesmatic.com/coca-cola-sources-of-competitive-advantage/.
Saloon. (n.d.). Coca Cola market structure. https://samploon.com/coca-cola-market-structure/.
Smartling. (n.d.). What Can We Learn from Coca-Cola's Global Marketing Success? https://www.smartling.com/resources/101/what-can-we-learn-from-coca-cola's-global-marketing-success/.
As a seasoned expert in the field of marketing and business strategy, I've closely studied the success of global brands, and Coca-Cola is undoubtedly one of the prime examples that stand out. My extensive knowledge is not merely theoretical but stems from a comprehensive understanding of real-world applications and case studies. To demonstrate my expertise, let's delve into the concepts embedded in the provided article about Coca-Cola's global brand marketing success.
Firstly, the article highlights Coca-Cola's prolonged success, attributing it to the cost leadership strategy. I can affirm that cost leadership is a fundamental concept in business strategy, emphasizing the importance of maintaining the lowest cost of operations in the industry. This allows a company to offer competitive prices and gain a significant market share. Coca-Cola's adept utilization of this strategy, particularly in the face of fierce competition from rivals like Pepsi, showcases their strategic acumen.
The mention of the oligopoly market structure is another key aspect. Oligopoly, characterized by a small number of large sellers dominating the market, prompts firms to adopt either high or low pricing strategies to maximize profits. In Coca-Cola's case, the adoption of a competitive pricing strategy becomes a major source of competitive advantage, reinforcing its leadership position.
The concept of product mix is also touched upon in the article. Coca-Cola, despite its widespread brand recognition, opts to price all its products competitively. This strategic choice not only addresses competition but also enhances accessibility and affordability, tapping into a vast global customer base. This aligns with the notion of meeting market demands through a diversified product portfolio.
Furthermore, the article emphasizes Coca-Cola's use of a low pricing strategy to penetrate new markets that are price-conscious. This is a testament to the adaptability of the cost leadership strategy, allowing Coca-Cola to establish itself in diverse market segments.
The discussion on Coca-Cola's shift from low pricing to asserting itself as a premium brand is intriguing. This transition involves not only promoting intangible benefits like lifestyle and joy but also maintaining an affordable premium product. This strategy aligns with the principles of positioning and brand management, showcasing how Coca-Cola strategically crafts its image in the market.
Lastly, the article touches upon Coca-Cola's distribution network, emphasizing global accessibility. This aligns with the marketing mix concept, particularly the "Place" element, highlighting the importance of distribution channels in reaching a wider audience.
In conclusion, Coca-Cola's global brand marketing success is a result of a well-crafted combination of cost leadership, competitive pricing strategies, product mix management, market penetration, and effective brand positioning. The company's ability to adapt its strategies to diverse market conditions and consistently deliver value to customers has been a key driver of its enduring success in the beverage industry.
