The objective is to nurture a successful network of customers and suppliers to create more enduring value and accelerate substantial growth to operate in tomorrow’s world. Coca Cola has built its business using a universal strategy based on three timeless principles:
- acceptability – through effective marketing, ensuring Coca-Cola brands are an integral part of consumers’s daily lives, making Coca-Cola the preferred beverage everywhere.
- affordability – Coca-Cola guarantees it offers the best price in terms of value for money
- availability – making sure that Coca-Cola brands are available anywhere people want refreshment, a pervasive penetration of the marketplace.
Coca Cola has an extensive and well organized distribution network (Rohini Upadhyay, Feb 2011). Considering India, The effective distribution network of coke has almost eroded the small and middle level players in the market. In India they have captured even the rural market by extensive distribution and have eroded the market share of Bovonto, Kalimark etc. Coca Cola has two methods of distribution, Direct and Indirect. Direct is when the product is delivered directly to the retailers and indirect is when the wholesalers deliver it to the market. The company has used the marketing mix affirmatively.
- Special placement for which retailers are paid.
- In the airline industry, where the company give good deals and t-shirts, banners and even bags for promotion.
- Organizing tournaments and serving the domain with their product. For e.g. Sharjah cup, IPL, etc.
- Placement in the fastfood industry with loyal partners such as Subway, Domino’s, McDonald’s etc (Rohini Upadhyay, Feb 2011, Management paradise).
Coca Cola has a wide distribution network with a push strategy in which they use its sales force and trade promotion money to induce intermediaries to carry, promote and sell the product to end users, i. e. customers. For eg, giving trade schemes and free pet bottles to distributors, agencies (Kushagr Jain, July 2014).
Coca Cola also uses a pull strategy in which they are using promotions and advertisements to persuade customers to ask intermediaries for the company brand product. For eg, using flanges, display racks, standees, mobile chargers,etc (Kushagr Jain, July 2014).
Coca Cola operates a franchise distribution system where the company only produces syrup concentrate which is then sold to various bottlers throughout the world who hold and exclusive territory. The Company supply’s syrups and concentrates to over 1,200 bottling operations, which thus involves local companies and suppliers in around 200 countries in which Coca-Cola is sold (http://www.coca-colajourney.com.au). Coca cola uses CSR as its marketing tool to gain emotional benefits in consumers mind.