When trying to understand business marketing it is important to understand that businesses profit greatly when they achieve a situation in which they do not need to deal directly with each and every customer from each and every household in each and every country they market in. for a large company it can be much easier to market and supply to large firms and companies which either employ or entertain many people who are customers of the other business and do their business directly with the third party. Coca-cola for example markets to restaurants, bars, theaters, large offices, supermarkets, delis, airline companies, and many more. To coca-cola marketing to one of those businesses means they can indirectly reach the customer and in this way make new and keep existing customers without having to directly market and supply to them.Coca-cola is a big and known company and even though they market efficiently and excessively too many firms, they have the privilege of many businesses wanting to contact them instinctively. An example where individuals encounter coca-cola products is at the movie theaters, if we think about it, every theater we go to and purchase a soda and popcorn, we will get the soft drink served to us in a coca-cola cup regardless of which soda we choose to buy. In this way coca-cola is part of the movie experience for individuals without dealing directly with the consumer. Coca-cola also sells its products out of the country to individuals who make the products in their own factories, in this way coca-cola is everywhere without directly being responsible for being in the supermarkets and delis because the companies whom work with them take care of those things.
When a company has few products the ability to satisfy a diverse and wide range of clientele is limited. The coca-cola company has increased the quantity of products they offer throughout the years and are constantly searching for new opportunities. Each product the company offers attracts a market segment, which means they appeal to a certain kind of people; some of the products are directed to very specific market segments such as diet cola, which is directed for consumption by women, and cola-zero which targets the market segment of males belonging to generation y. other products appeal to a less specific market segment such as the classic coca-cola which is loved by a wide range of very diverse consumers. In the world of business companies often try to expand by offering their products to a new segment of customers and in that way they have the benefit of not having to rely on a narrow range of customers.
Coca-cola segments their products succefully because they appeal to identifiable large segments and because of the company’s name and history it is easy for them to access the members of the segments they are trying to sell to. Coca cola also succefully uses benefit segmentation, cola-zero for example appeals to the consumer’s desire also because of the known benefits of the product to the consumer.
During spring break my boyfriend and i decided to escape the unstable New-York weather to the sunny beaches of Costa-rica. During our vacation i was surprised to see that coca-cola was EVERYWHERE! and my boyfriend was surprised that i couldnt escape my marketing class tasks. They even have 1 liter glass bottles! here are some pics !
Developing a new product is a team effort that goes through many stages of development until the product is finalized and ready to be distributed to the potential consumers.
It is a long and hard process but the history and statistics do show that it is highly profitable as long as you do it on a well constructed way:
One of the recent new products introduced by coca-cola is cola zero, the first stage for introducing a new product is called new product strategy, in this stage the new product strategy was a dual objective of reaching a different target market and creating a healthier product that will serve the companies approach of social responsibility.
In the next step of the process- the idea generations
Coca cola concluded many different ideas the one that pass the screening was the coca cola zero
The new product targets young males (ages 25-35) and has an amazing sugar and caffeine values of zero!! (Hence the name)
Business analysis – is another stage of screening through determining the profitability after cost. Coca-cola does thorough research of the market, competition and the projected revenue before putting a new product on the market, the company does not publicly display this research but it is understood that by holding many surveys it becomes easy to project the demand for the product.
Development- coca-colas main interest when developing a prototype is the taste of their product without losing its texture and color, and also that the product will relate to the company and still maintain a certain uniqueness, when coca-cola develop a prototype they supply samples to their projected target market in order to understand what to change and improve in the product this is known as the test marketing stage.
Commercialization- after passing all the stages it is then decided to start the production, build inventories and building the infrastructure of sales and distribution. When making a new product coca-cola has it relatively easier in these aspects because the company already has most of the infrastructure, space and ability to produce in any quantity demanded by the market. Coca-cola has an experienced team that trains new employees and inject belief and commitment to their sales teams.
Coca-cola has become what it is today because the company puts an emphasis on its promotional strategy. As any individual knows, having a great product or number of products is many times not enough for a company to expand make profit or even to survive.
When discussing a company’s promotional strategy the elements included are the elements that communicate the company with its targeted market. Advertising, public relations, personal selling and sales promotion make up a company’s promotional strategy. Coca cola spends a lot of time money and human resources in order to stay superior to the competition in the field of promotional strategy, thanks to the understanding of the importance of this communication to its target market coca-cola has always been very innovative with its use of advertising and through public relations have connected with their consumers and have created a feeling of togetherness.
Coca-cola spends millions of dollars a year on advertising, the company has its name and logo on many billboards around the world in the most prime locations, an example of this type of advertising can be found in the famous Picadili square in London, coca-cola have been on a billboard in Picadili since 1955 and it is seen by the many tourists and local which flock Picadili all year round. Coca-cola also has very unique commercials on television and has always connected to their consumers through strong story telling.
coca-cola project an iconic image, the company makes commitments to make a positive difference in the world, the social responsibility of coca-cola is shown by their pursue to provide clean drinking water to communities in Africa, coca-cola also have evolved their commitment to recycle and have transformed all their factories to be able to recycle all of their waste water and return it to the environment in order to support aquatic life. Coca-cola also encourage exercise and calorie burn in western societies through school programs, because of this commitment 25% of coca-cola products are low calorie and the content is increasing. Because of its controversial health benefits coca-cola have also committed not to advertise to children.
Through involvement in many events in which coca-cola provides samples and prizes of their product coca-cola may increase the immediate demand in their products, an example of a sales promotion that occurred recently is when coca cola teamed up with the rock band Maroon 5 in a 24 hour live session in order to create a song for the band, in this event coca-cola advertised provided funding and also its products, another sales promotion occurred when coca-cola zero partnered with the film Avatar in order to promote the brand and also the film, this partnership led to events special merchandise and very innovative ads.
Through its advertising and public relations coke has formed a personal connection with its consumers, consumers whom recognize coca-cola commitment to society for example may feel they should buy the company’s products and help the society because if they provide coca-cola with their business others will benefit because coca-cola will continue contributing to others.