“Taste the feeling” is one of the most well-known brand taglines in the world. Coca-Cola has not only succeeded in offering a wide variety of products loved by many, but it has also created an emotional brand appeal that inspires happiness, optimism, and togetherness. With over 21 brands in its portfolio and a global presence in over 200 markets, this article considers how the Coca-Cola Company makes a difference.
The Coca-Cola Company is one of the oldest players in the beverage industry. Despite aggressive competition from other well-established players like PepsiCo and local brands such as Nigeria’s Bigi brand, the Coca-Cola Company has maintained its position as the leader and a major player in the beverage industry. How has Coca-Cola been able to do this, and what lessons can be learned?
Lessons
Product Innovation. The Coca-Cola Company stands out with its regular and timely product innovation. The company is constantly developing new products to expand its target market. As a result of a shift in consumers’ needs for healthier options, Coca-Cola introduced new products like Coke Life and Coke Zero, targeted at health-conscious consumers. Coca-Cola also entered the fluid milk market by adding Fairlife to its product portfolio. By tapping into the health and fitness trend, Coca-Cola was able to expand into a new market segment, supporting its objective of being a globally recognized and relevant brand.
Due to the similarities among products in the beverage industry, differentiation is a highly significant factor in achieving a competitive advantage. Coca-Cola has been able to differentiate its products by investing mainly in brand building through successful marketing campaigns and advertisements.
The biggest strength of the Coca-Cola Company is its brand equity, built through strong marketing strategies. The company utilizes different advertising campaigns for different markets and regions. Coca-Cola spends a great deal of money on campaigns that bring people together and inspire them to buy its products. They create universal campaigns that are understood and loved across the world. They do not just sell a Coke bottle; they sell happiness in a bottle. Their marketing strategy has always been to associate happiness, positivity, and the good life with their products, and that’s how they have created strong top-of-mind awareness.
Some of these campaigns include the “Share a Coke” campaign, which was reportedly so successful it reversed a decade-long decline in global Coke consumption. The “Taste the Feeling” campaign focused on the product and marketed the ideal feelings associated with consuming the product. The brand also sells its products by highlighting concepts like togetherness, brotherly love, and football banter.
Another marketing strategy employed by the company is building associations with complementary products. The company partners with the food industry to develop the notion that Coca-Cola is the drink that goes with, for instance, Domino’s Pizza or McDonald’s. Even when visiting local restaurants, you’ll notice a Coca-Cola poster suggesting that Jollof Rice or Pounded Yam is best enjoyed with a cold bottle of Coke. Sometimes, they partner with certain fast-food restaurants to offer Coca-Cola as a free/discounted complementary product. For instance, the Domino’s Smallie is sold alongside a Coca-Cola product in Nigeria.
The Coca-Cola supply chain is one of the world’s most wide-reaching, seamless operations. The Coca-Cola Company focuses on leading a global system of bottling partners. The company makes its products available to consumers through a network of company-owned bottling and distribution operations and independent bottling partners, distributors, wholesalers, and retailers.
The Coca-Cola Company has been operating a franchised distribution system since 1889. In this franchised distribution system, the company only produces syrup concentrate, which is then sold to various bottlers worldwide who hold an exclusive territory. The franchise model allows the company to avoid manufacturing, storage, and distribution costs. It also enables the company to scale faster. Bottling partners are responsible for meeting customer demand through manufacturing, packaging, distributing, and merchandising the finished branded beverages to customers. These bottling partners are also responsible for customer marketing and outlet execution.
The company also grants licenses to independent distributors and micro-distribution centres, such as the Coca-Cola depots across the country. This has helped the company achieve ubiquity. Aside from bottling companies and distribution depots, the Coca-Cola Company also ensures that its products are available in every community by giving out coolers and partnering with local stores and restaurants on the condition that they exclusively stock Coca-Cola products.
The Coca-Cola brand-building strategy and operations can serve as a guide to businesses looking to achieve differentiation in a highly competitive industry or seeking to build a global presence. From the Coca-Cola story, one of the best ways to market a product is to create an emotional attachment that resonates with people. The story also highlights the power of association with complementary products in other industries. By thinking of how customers use products and what other product or services is used side by side, a business can unlock a new level of value for itself. Businesses can also learn how partnership and collaboration help ensure product reach across communities, countries, and regions.
