Time For Drinks Break…

Coca-cola- The Leading Soft Drink Company



The Coca-Cola company has managed to be a market leader in the soft drinks industry despite being faced with a lot of controversies. You may have watched several YouTube videos that talk negatively about Coke and the negative effects that the drink might have on the human body. I have read some news pieces and articles that link carbonated drinks to obesity and other serious health-related issues. In a survey that involved 3000 people, Coca-Cola came sixth among the brands that people said that they cannot do without. However, the situation for the soft drink manufacturer in Australia has been bleak with people moving towards the bottled water as an alternative to soft drinks. Bottled water accounts for one-quarter of non-alcoholic ready to drink beverages having risen from 14% five years ago (Heffernan, 2018). However, despite the negative campaigns, I still think that Coca-Cola is a global brand. Among the words that are recognised widely all over the world, you will notice that Coca-Cola only comes second after the word “hello”.


Marketing mix: price, product, place, promotion


Product: The Coca-cola company has a large product portfolio that is made up of 500 sparkling and still brands. The company gives consumers the option of choosing from almost 3900 beverage choices. Coca-Cola which is its leading brand is one of the most recognized brands in the world (Brei, d’Avila, Camargo & Engels, 2011).


Place: The company has an extensive product distribution system with products being sold in over 200 countries across its 6 operating regions which include Africa, North America, Europe, Latin America, Pacific, and Eurasia. An estimated 1.9 billion Coca-cola servings are sold on a daily basis.  The company operates through local channels. The company manufactures and sales beverage bases, syrups and concentrates to bottling operations. It also owns the brand and is tasked with consumer branding marketing activities.  The bottle partners then take part in manufacturing, packaging, merchandising and distributing the final product to consumers (Pratap, 2018).


 Price: the company prices its products competitively. The prices are not too high and are also not set too low since that would give an impression of lower quality. The pricing strategy adopted by the company is meant to enhance brand loyalty (Pratap, 2018).


 Promotion:  the company concentrates n advertising to wade off intense competition. In 2016, the company spent $4 billion in the promotion. Coca-cola company makes use of both traditional and modern channels to promote the product and the grand. The brand’s ads are run on TV, outdoor and indoor campaigns, internet and social media. Coca-Cola makes use of social media to connect with its fans and followers and ensure that there is proper customer engagement (De Mooij, 2013).


Coca-Cola and Ansoff Matrix



Market penetration– the coca cola company utilises market penetration yearly through the creation of an association between Coca-Cola and Christmas.  The famous Coca-cola adverts that are run during the Christmas period helps in boosting sales tremendously (Brei, d’Avila, Camargo & Engels, 2011).


Product development– the small-scale competitors prompted Coca to extend beyond its original recipe. Coca-Cola went ahead to come up with different flavored variants such as lime, vanilla, and lemon (Salmons, 2012).


Market Development- Coca-Cola has successfully managed to create the market for Diet Coke. The drink which was launched over 30 years ago mostly appealed to females which resulted in men shying away from it. However, Coca-Cola has managed to create a masculine appeal for the product through a shiny black can and opposite advertising campaigns (Salmons, 2012).

Related Diversification– Coca-Cola has been moving towards the health drink sector.  The decline in the sales of carbonated soft drinks like Coca-Cola could be one of the reasons why Coca-Cola spent $1.4 billion in 2007 to acquire Glaceau and its health drink brand Vitamin water. The move by Coke was therefore meant to acquire new products that would complement the existing portfolio (Christopher, 2016).


Unrelated Diversification-Cola cola avoids getting into risky ventures and instead, makes use of the strength created by its brand to grow within its own territory. However, Coca-Cola offers strong merchandise in the form of fridges, glasses, and pens which enables it to exploit unrelated diversification (Christopher, 2016). 


Celebrity Advertising

One of the most liked photos in the history of Instagram bears the caption of a selfie of Selena Gomez Drinking Coke.  The selfie has the impact of making other brands grin with envy given the fact that it garnered 5 million likes (Berge, 2018). Such tactics are used by Coca-Cola to make a certain segment of the market to identify more with the brand. Through such adverts, celebrities are able to make their fans identify with Coca-Cola, which boosts sales (Baig & Siddiqui, 2012).










Baig, F., & Siddiqui, K. (2012). Impact of sports celebrity endorsements on the purchase intentions of Pakistani youth.

Berge, J. (2018). Coca-Cola & Selena Gomez: The Selfie Seen ‘Round The World | Olapic. Retrieved from http://www.olapic.com/resources/coca-cola-selena-gomez-selfie_blog-p1aw-g1li-f1tr-v1cp-v1fb/

Brei, V. A., d’Avila, L., Camargo, L. F., & Engels, J. (2011). The influence of adaptation and standardization of the marketing mix on performance: A meta-analysis. BAR-Brazilian Administration Review8(3), 266-287.

Christopher, M. (2016). Marketing: an introductory text. Macmillan International Higher Education.

De Mooij, M. (2013). Global marketing and advertising: Understanding cultural paradoxes. Sage Publications.

Heffernan, M. (2018). Coca-Cola Amatil suffers as soft drink sales fall for a decade in Australia. Retrieved from https://www.smh.com.au/business/companies/cocacola-amatil-suffers-as-soft-drink-sales-fall-for-a-decade-in-australia-20170424-gvr79s.html

Pratap, A. (2018). Marketing Mix of Coca-Cola: Product, Place, Price, and Promotion. Retrieved from https://www.cheshnotes.com/2017/03/coca-cola-marketing-mix/

Salmons, A. (2012). The Role of Marketing Auditing and Planning for Coca-Cola Corporation. Carpe Diem, The Australian Journal of Business & Informatics5(1).

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