Nghiên cứu thị trường và hợp đồng xuất khẩu mây tre đan

FOREIGN TRADE UNIVERSITY
ENGLISH FOR SPECIFIC PURPOSE FACULTY

INTERNATIONAL BUSINESS ASSIGNMENT
TOPIC: MARKETING STRATEGY OF COCA – COLA

Teacher: PhD.Nguyễn Thu Hương
Class: TAN432(2-1920).5
Group 7:
Nguyễn Thị Thúy Hiền
Hoàng Xuân Mai
Nguyễn Thị Thắm
Tô Thị Hoài
Đặng Thị Phương Linh
Trần Thu Nga
Phạm Thị Thu Hằng

1711110245
1711110445
1711110612
1711110277
1711110373
1711120114
1711110223

Hanoi, March 12, 2020


TABLE OF CONTENTS
INTRODUCTION
1. 3

1.1.
3
1.2.
3
1.3.
3
1.4.
4
1.5.
4
1.6.
4
2. 5
2.1.
5
2.2.
6
2.3.
6
2.4.
7
3. 8
3.1.
8
3.2.
9
3.3.
12
3.4.
14

CONCLUSION

2

18

1


INTRODUCTION
As the world‟s third most valuable brand, Coca-Cola is also one of the most
successful. Its products are available in every country, and through the gray market,
this also includes Cuba and North Korea.
Having a marketing strategy uniquely designed for the company has given it a huge
boost at increasing global brand recognition.
Like other companies, Coca-Cola bases its marketing strategy on the wellknown marketing mix of the “4Ps”: Product, Price, Promotion and Place.
However, due to the uniqueness of the company‟s brand, we‟ve mixed things up a
bit by including other, more subtle reasons behind the company‟s success and the
uniqueness of the brand.
Our essay includes 4 sessions:
Session 1: Introduce about Coca-cola
Session 2: Marketing mix in general
Session 3: 4P- Elements
Session 4: Conclusion & Quizzes
We hope to get your evaluation for improving our essay!

2


1. Coca – Cola in general

1.1. About the company
 The Coca-cola is one of the largest beverage coporation in the entire world.
 The main products are their wide variety of soft drinks.
 In recent years, Coca-cola has had an average about $46 billion dollars in
sale and revenue per year.
 After all of the deductions, Coca-cola has accumulated an average of $ 8.5
billion in net income.
 Estimated 123200 employees.
 Coca-cola is on a New York Stock Exchange with a current stock value of $
43.53 per share.
1.2. Mission
Coca-cola‟s mission statement is “To refresh the world in mind, body, and spirit.
To inspire moments of optimism and happiness through our brands and action”.
1.3. Strategy
 Coca-cola is unique in the way they brand their soft drink product.
 Those who are marketing for Coca-cola focus heavily on having that strong
relationship with its customers, and so they create their brand to focus on the
happiness that their products bring.
 Coca-cola keeps their drinks at a low price so that their customers may enjoy
the drinks regularly.
 Remain consistent in their quality and service of their products over time.
 Design has been renovated and recreated over the years to keep up with
capturing their customer‟s attention.
 Coca-cola not only sells soft drinks, they sell happiness. Their marketing
campaign to see happiness in the lives of people has become widely accepted
by millions of people who have their heart captured by Coca-cola.

3

1.4. Target market
● Coca-cola has reaches people all over the world by distributing their
products over 200 countries.
● Falls an undifferentiated marketing which means there is no segmentation.
● The company uses a multi- segment targeting strategy which explains why
they have more than one well- defined target market.
● However, within their line of products, they have different groups, for
instance:
○ Oasis juice is marketed towards 20-30 year- old located in the United
Kingdom.
○ Powerade is marketed towards “sporty” customers that range from 13
to 27 years old.
○ Diet Coke and Coke Zero is a healthier option for those who want to
cut calories and life a healthier lifestyle.
1.5. Competition
● Coca-cola is leading the world in the beverage business, yet still share the
market other companies.
● Top three competitors that remain up against Coca-cola are:
○ Pepsico, Inc
○ Nestle S.A
○ Dr Pepper Snapple Group, Inc
● Even Coca-cola keeps a close eye on their competition, they holds the
position of being the leader in the market.
● Coca-cola dominates in this soft drinks market with 26% of the market share
and specifically 43% in the United States market alone.
1.6. Brand
 Coca-Cola is a firm that sells many consumer products to customers for their
personal enjoyment.
 The beverages are classified as a convenience product because the
consumers who buy these drinks do not spend much effort or time evaluating

the quality before purchasing. Coca-cola‟s product mix is made up of breadth
4


of categories such as soft drinks, juice, diet beverages, sport drinks and
water.
 Within each product line our depth of drinks, for example for the soft drink
of and include: Coke, Sprite and Fanta. Coca-cola goes one step further to
make even more variation of each flavor in the line. For Coke, there‟s vanilla
and cherry. For Fanta, there‟s orange and strawberry.
2. Marketing Mix in general
Marketing mix is a marketing concept that includes all of the tools available to
marketers to develop efficient actions and achieve their sale penetration targets
within a target market.
Marketing Mix contained 4 elements: Product, Price, Place and Promotion
2.1. Product
The product aspects of marketing deal with the specifications of the actual goods or
services, and how it relates to the end-user's needs and wants. It involves decisions
about the product‟s quality, its style and design and the branding policy.
 Product life cycle: all products follow a logical product life cycle and it is
vital for marketers to understand and plan for the various stages.
o Introduction: the product will be very new to the market and only a few
people will know about it. Marketing strategy in this stage is to create
awareness among customers.
o Growth: after a while the product will become widely known. Marketers,
therefore, focus on building their brand.
o Maturity: the market will become saturated. Marketing is used to
differentiate producer‟s products.
o Decline: at the end of a product‟s life it will become less popular and will
be replaced by other newer products. In this stage, advertising budget will

be cut down.
 Product variation is a change of the product by adding attributes such as size
and color.
 Product differentiation is the process of distinguishing the differences of a
product or offering from others, to make it more attractive to a particular
5


target market. This involves differentiating it from competitors' products as
well as one's own product offerings.
 Product innovation involves the introduction of a good or service that is new
or substantially improved. This includes, but is not limited to, improvements
in functional characteristics, technical abilities, or ease of use.
 Product elimination is the removal of products from the product portfolio
once they have reached the decline stage of the life cycle. Usually the choice
rests between immediate withdrawal and phasing it out slowly.
2.2. Price
This refers to the process of setting a price for a product, including discounts.
 Cost recovery pricing: setting the price to cover costs
 Price skimming is a pricing strategy in which a marketer sets a relatively
high price for a product or service at first, then lowers the price over time.
Price skimming is frequently used when a new product just entered the
market, the business may be able to charge high prices as some customers
would want to be first to buy the product. It commonly occurs in
technological markets as firms set a high price during the first stage of the
product life cycle. The top segments of the market which are willing to pay
the highest price are skimmed off first. When the product enters maturity the
price is then gradually lowered.
 Penetration pricing is the pricing technique of setting a relatively low initial
entry price, often lower than the eventual market price, to attract new

customers. The strategy works on the expectation that customers will switch
to the new brand because of the lower price. There is much controversy over
whether it is better to raise prices gradually over a period of years (so that
consumers do not notice), or employ a single large price increase. A common
solution to this problem is to set the initial price at the long-term market
price, but include an initial discount coupon.
2.3. Place
This refers to the channel by which a product or service is sold.
 Distribution channel: path or 'pipeline' through which goods and services
flow in one direction (from vendor to the consumer). A distribution channel
6


can be as short as being direct from the vendor to the consumer or may
include several inter-connected intermediaries such as wholesalers,
distributors, agents, retailers. Each intermediary receives the item at one
pricing point and moves it to the next higher pricing point until it reaches the
final buyer.
 Direct Sales: a retail channel for the distribution of goods and services.
 Indirect sales through partners, is a strategic possibility for growth and
incremental sales for vendors. Though invaluable, no direct sales force,
vendors can hope to achieve the same coverage and breadth of expertise as
an effective channel partner network. For sustainable growth, vendors and
distributors are looking beyond their internal resources to extend their sales
opportunities with the right partners.
2.4. Promotion
Promotion involves disseminating information about a product, product line, brand,
or company. Promotion is generally sub-divided into two parts:
● Above the line promotion: promotion in the media (TV, radio, newspapers,
Internet in which the advertiser pays an advertising agency to place the

advertisements).
● Below the line promotion: much of this is intended to be subtle enough for
the consumer to be unaware that promotion is taking place (sponsorship,
product placement endorsements, sales promotion, etc).
● Promotional mix:
○ Advertising: any paid presentation and promotion of ideas, goods, or
services by an identified sponsor (television, billboard, brochures and
catalogs, signs, in-store displays, posters, Web pages, banner ads,
emails).
○ Personal Selling: a process of helping and persuading one or more
prospects to purchase a good or service or to act on any idea through
the use of an oral presentation (sales presentations, sales meetings,
telemarketing).

7


○ Promotions: incentives designed to stimulate the purchase or sale of a
product, usually in the short term (coupons, contests, product samples,
trade shows, exhibitions).
○ Public relations: paid intimate stimulation of supply for a product,
service, or business unit by planting significant news about it or a
favorable presentation of it in the media (newspaper and magazine
articles/reports, TVs and radio presentations, charitable contributions,
speeches, issue advertising, seminars).
3. Coca – Cola’s marketing mix strategy
3.1. Product
As the most recognizable brand in the world, Coca-cola certainly knows how to
gain successful global marketing. Over a century, Coke remains an industry leader
both in product sales and marketing. The following are some of the keys to the

iconic company‟s strategies:
 Invest for growing brand recognition and customer loyalty.
When mentioning Coca-cola, the first one that appears in customer mind is the
original coke. It is quite easy to understand because the original Coke beverage
brought about the rise of the company. It is the most successful drink in the world.
Since its launch in 1886, it has shown high demand year after year in different
nations despite the general life cycle of a product. Logo uses a timeless font which
has been written in the Spencerian script, because it would differentiate it from its
competitors. The company standardized the logo in 1923 and, like the recipe,
decided that while packaging could adjust to the times, the core logo was to be
untouched. It's resulted in a logo that has had more than 100 years to become
imprinted in the minds of people around the world.
 Design a large product portfolio to satisfy a range of target customers
Coca-cola product strategy in its marketing mix can be studied by understanding its
wide product range. According to Nielsen's data, Coca-Cola is the number one
brand in the beverage, juice, and bottled water market in 2010. Its flagship product
is carbonated drinks, now Coca-Cola has diversified products with many designs,
colors and flavors such as Fanta, Maaza, Limca, Sprite, Danisa or Nested Iced Tea.
New products have helped Coca-Cola gain new customers and venture into new
8


markets. Coca-Cola aims at satisfying a range of different people. It has about
3,300 products sold around the world targeting different ethnic groups, sexes,
lifestyles, age groups etc.
 Change to adapt to international trend
Over the years, the world has witnessed a growing awareness of the impact of a
variety of drinks on public health. The Coca-Cola Company‟s response to the
public concerns has been prompt. For example, some of the products are now
caffeine-free. The company also has a reduced or no-sugar, no-calorie option for

almost all of its products. Due to its great popularity around the world, and
upcoming trends towards healthier lifestyles Coca-Cola began to make other cola
drinks such as coke zero, Coca-cola light, Coca-Cola with lime, diet Coke among
others. These different beverages with a similar basic taste enabled the company to
target a much broader market.
 Provide different packaging & sizes to extend the product cycle life
In some markets, the company has different packaging sizes according to consumer
demands. In most countries, they consist of 300 ml, 600ml, 1.25 liters, 2 liters
bottles and in most regions cans with a capacity of 375ml. However, in some
instances e.g. in Mexico there was the introduction of a convenient 2.5 liter bottle
due to the high consumption of the soft drink in the country.
Coca-Cola's packaging is constantly improving to extend the life cycle of the
product to give customers a new feeling, eye-catching, optimistic and more
convenient to use. During each Tet holiday, Coca-Cola uses the image of
"swallow bird" to signal the spring to create a good impression for consumers,
making the product more valuable, very suitable for giving and making Tet gifts.
Overall, in the product strategy, Coca-Cola expanded its current product portfolio
by increasing the depth of a product line and increasing the number of product
lines, positioning the product in accordance with each specific market. Especially
Asia and Vietnam market and Coca knows how to exploit brands to compete in the
"giant" beverage market.
3.2. Price
Price is the amount the customers pay for the product. Price is important because it
determines profit and then the survival of the company. Price adjustment has a
9


profound impact on marketing strategies, and depending on the price elasticity of
the product, often it will affect demand as well as sales. Marketers should set a
price that compensates for other factors in a marketing mix campaign.

Thanks to the variety of products, Coca-Cola‟s selling price is adjusted
appropriately for each market segment and geography. Each Coca – Cola brand has
a different pricing strategy. This strategy is based on a competitor format, of which
Pepsi is Coke's biggest direct competitor. Pepsi is the arch-rival of Coca – Cola and
the closest competitor in the beverages segment. Both brands price their products
competitively. Prices are not too high to go beyond the average customers‟ reach
and nor too low to give an impression of low quality. Coca-Cola‟s pricing strategy
is aimed at driving brand loyalty. Moreover, due to the decreasing demand for soda
products, price competition between Coca-Cola and Pepsi has gotten even intense.
The prices lower as the size of the package grows bigger.

Coca – Cola products are valued by looking at buyer‟s perceptions of the value, not
the cost of the seller. Coca – Cola has pursued a 3P and 3A pricing strategy to gain
the best advantage and serve the consumers.
 3P strategy:
o Price to value: Consumers are not only able to buy Coca – Cola but
also benefit from the products.
o Pervasiveness: Consumers can buy Coca – Cola everywhere.
o Preference: make consumers not only love the product but also ensure
that Coca-Cola is the first choice when they come to beverage.
 3A strategy:
10


o Affordability: Coca – Cola„s selling price ensures it is suitable for
everyone, anyone can buy it.
o Availability: Consumers can buy Coca – Cola whenever and wherever.
o Acceptability: Coca – Cola must make customers love and accept the
products, feel happy when using them.
Coca-Cola products are priced based on the buyer at the perceived value. They

believe that buyers 'perception of value, not sellers' costs, is an important basis for
pricing.

According to Vienam Sales and Marketing Camp 2016, in each can of Coca-Cola,
the most expensive cost is advertising (59.8%, equivalent to more than 4,700 VND
in 8,000 VND) and the smallest cost is raw materials (only accounting for 4.3%, ie
11


just over 300 dong). Other costs are distribution costs, shipping costs, and
administration costs.
Pricing Strategy:
- Penetration pricing: Unlike the price skimming strategy to curb the market,
Coca-Cola choses a relatively low new product pricing strategy to penetrate
the market, hoping to attract a large number of customers and achieve a large
market share.
- Discounts pricing: Coca-Cola will adjust the price to reward customers who
pay in advance or buy in bulk.
- Discrimination by product type pricing: Coca-Cola usually produces
diversified products. They vary in brand, appearance, size… Therefore, they
are priced at different levels to suitable for each group of customers.
3.3. Distribution (Place)
Coca-Cola is the most loved brand and is available almost everywhere in the world.
Coca-Cola's distribution systems follow the model of fast-moving consumer goods
(FMCG). Coca-cola has an extensive beverage distribution system. Its products are
sold in more than 200 countries across 6 operating regions including Europe, Latin
America, North America, Pacific, Eurasia & Africa. Coca-cola sells an average of
1.9 billion servings each day. Traditionally, the company has relied on its bottling
partners for the packaging and distribution of its products.
In Vietnam, Coca-Cola beverage products are produced in 3 bottling plants in Ho

Chi Minh City, Hanoi, and Da Nang. With three manufacturing plants in the north,
central and south enabling companies to expand the distribution network in the
area, to provide adequate product for the subsidiaries in this area.
At the same time, Coca-Cola's distribution network is nationwide, from big cities to
rural areas, from general agents to small stores, available throughout retail locations
nationwide, cafes, soft drinks or restaurants, cafes, etc. Coca-Cola attracts small
distribution points by providing financial support, store decoration, giving
umbrella… Thus, Coca-cola is generally available throughout the Coca-Cola
Company in:
- Wholesalers/ distributors
- Retail/corner stores/ supermarkets/Groceries
12


- Restaurants/cafés/night clubs
- Petrol stations
- Automated teller machines (ATMS)
- Convenience stores, movie theatres, and amusement parks

Coke has also built an extensive reverse supply chain where they collect the
leftover glass bottles from the retailers and convert them into a reusable product
thus saving cost and additional resources.
As Coca-cola notes, “While many view our Company as simply “Coca-Cola” our
system operates through multiple local channels. Our Company manufactures and
sells concentrates, beverage bases and syrups to bottling operations, owns the
brands and is responsible for consumer brand marketing initiatives. Our bottling
partners manufacture, package, merchandise and distribute the final branded
13

beverages to our customers and vending partners, who then sell our products to
consumers” (Coca-Cola company).

Coke's distribution system is one of the most important and is very impressive
compared to all other drinks in the category. It has such an impact on consumers
and is so successful that even wholesalers and distributors need the product for
their business' success.Coke's position on consumer's mind makes it essential to
retailers, wholesalers and away-from-home market. They have achieved their goal
thanks to this high visibility, and to the availability of the products all over the
world, even in remote places.
3.4. Promotion
Due to low customer loyalty and high competition in the beverage industry, the
company needs to pay heavy focus on the advertising and promotion of the
products to increase sales and create top of the mind recall in the customer‟s mind.
Promotion plays an important role in the marketing mix of Coca-cola for creating
awareness and promoting their products. Coca-cola is best known for its clutterbreaking and out of the box marketing campaigns. The company very well uses
experiential marketing to connect and engage with customers. Coca-cola adopts
various advertising and promotional strategies to create an increased demand in the
market by associating with life style and behaviour and mainly targeting value
14


based advertising. You are more likely to see a coke ad individualised for a
particular festival or in with a general positive message.
Coca-cola uses CSR as its marketing tool to gain emotional benefits in consumers
mind. The current promotions through CSR include “Support my school” campaign
with NDTV. It has many brand ambassadors like Shahrukh khan, Hrithik Roshan,
South Indian Actor Vijay and Trisha, Gambhir, Aamir khan etc and has signed
contract recently with Imran khan. It is programme for healthy, active and happy
schools. The soft drink company said that the campaign aimed to create awareness

and address
In March, Coke installed five special phone booths in Dubai labor camps that
accepted Coca-Cola bottle caps instead of coins. In exchange for the cap from a
bottle of Coke which costs about fifty-four cents, migrant workers could make a
three-minute international call. The ad shows laborers in hard hats and reflective
vests lining up to use the machine and grinning, for the first time in the video, as
they wait. “I‟ve saved one more cap, so I can talk to my wife again tomorrow,” one
man tells the camera. More than forty thousand people made calls using the
machines.
Coca-Cola achieved many marketing goals with this latest installment of
Happiness:
 Coke has done something the competition has not done.
 The target market (perhaps a younger generation with an eye on social good)
was reached.
 Coke re-ignited a previous campaign and extended the reach to a more global
audience.
 The brand successfully associated itself with happiness and giving.
It goes without saying that Share A Coke is one of Coca-Cola‟s most noteworthy
digital campaigns.The campaign was originally trialled back in 2011, resulting in a
7% increase in sales. It also earned a total of more than 18 million media
impressions, and traffic on the Coke Facebook site increased by 870%, with page
„likes‟ growing by 39%. The campaign gives people the chance to order
personalised Coke bottles through a Facebook app, while in some countries the
labelling has been changed altogether so all Coke products have different names on
15


them.It‟s been a massive success on social networks as it turns out that people love
to share images of Coke bottles with their name on the side.
Coca cola spends a lot of money advertising and even though the brand name is

very popular Coca cola still uses consumer sales promotion in order to attract new
customers and also to provide their existing customers with an incentive to
purchase more of their product
It allows price discounts and allowances to distributors and retailers and uses
various types of sales promotions in order to push more products into the market. It
employs both push strategy through promotions and pull strategy through
advertisements and campaigns.

16


CONCLUSION
Whatever marketing strategy is implemented, one of the goals of the marketing
activity is to consume many products with high sales and low costs through
satisfying customer needs. From maintaining customer satisfaction about products,
businesses increasingly have a foothold in the hearts of customers. Therefore, the
more products of the enterprise are selected by customers, resulting in the
increasing number of products and services that the Company offers, the greater the
profit the enterprise will receive.
To accomplish this, businesses do more than create higher quality products, design
eye-catching packaging, apply new sales measures, set prices and advertise
products.
However, the biggest goal of the business is to ensure the production and supply of
attractive products for the target market, in addition to the coordination of other
functions in the company.
Currently, marketing issues are increasingly focused by businesses. Marketing has
affected the entire life of every person in society, it connects customers with
businesses.
With the appropriate marketing mix strategy, Coca-Cola has a firm foothold in the
hearts of consumers in the world in general and Vietnam in particular. This is also

the lesson about how successful brands are worth learning for brands.

17