Soft Drink Promotion Coca-Cola Case


SoftDrink Promotion: Coca-Cola Case

SoftDrink Promotion: Coca-Cola Case

Thesoft drink industry has a competitive marketing and promotionalenvironment because it is dominated by large companies. Thesecompanies are able to produce and market their drinks in both theircountries of origin and the world over. As a result of theiraggressive search for the market share, they have dominated themarket worldwide, making them powerful multinationals. One of themain players in the world is a Coca-Cola Company that has dominatedthe industry. Among other companies include Pepsi, 7Up, CottCorporation, Dr. Pepper Snapple and red bull among others (StatisticsPortal, 2015). At the same time, the soft drink industry has a numberof small manufacturers who sell in their local markets but are unableto compete effectively with the main world players like Coca-Cola.

Oneof the main strategies that have made Coca-Cola the dominant playerin the industry is an effective promotional function and marketingstrategies. Coca-Cola has over time implemented effective andcompetitive strategies that have kept the firm at the top of themarket and made the company the largest soft drink producer in theworld (Anders,2013). According to StatisticsPortal (2015), Coca-Cola has enjoyed around 42% of the market sharein comparison with Pepsi’s 30%, Dr. Pepper Snapple’s 15% and therest shared by the smaller producers.

Oneof the promotional strategies adopted by the company is celebrityendorsements. The company uses them to endorse their products inorder to gain the market preference of the consumers that areinfluenced by the celebrities (Matt,2014). The company has also investedheavily in the sporting industry as a way of marketing its brand. Thecompany sponsors several sporting events in order to create awarenessand preference by the consumers. The company also takes the strategyof branding locations of public use in both the United States and inthe global scene (Anders,2013). Among of the locationsbranded by the company are stadiums, parks and public service utilitybuildings. This opens its brand visibility to the public that makesits brand conspicuous.

Thecommunication channels used by the company are the same as those usedby the competing firms. For instance, they all use the conventionaltri-media channels of Television, Radio and Newspapers. In addition,they use the new media strategies like the mobile advertising, onlinepromotion and social media platforms.

Thepromotional strategies of Coca-Cola are effective and successful.This is because the company has adopted strategies that make the costof promotion for the new entrants high thereby eliminatingcompetition from small producers (Matt,2014). The company does this by usinglarge budgets in the promotion, which makes the promotionalstrategies by the new entrants and smaller companies insignificant toswing the market. In addition, the company introduces strategies likegiving free fridges, branding and merchandise to vendors andretailers (Anders,2013). This makes it expensivefor smaller companies to replicate, hence leaving the dominance toCoca-Cola alone.

Allthe companies use the same platforms of marketing and productpromotion. These platforms include television and radio adverts,outdoor promotions, online marketing and advertising, among others(Matt, 2014).However, the effectiveness of their strategies is different in thescope and results. The marketing strategies by other companies areonly effective in the low scale markets and local markets, comparedto Coca-Cola’s global promotional strategy. The promotionstrategies by Coca-Cola are unique and effective because of its largepromotional budget and the global outlook of the firm.


StatisticsPortal, Marketshare of leading carbonated soft drink companies in the United Statesfrom 2004 to 2014.RetrievedFrom,&lt 8, 2015

Matt,C. 2014. MarketingPlan: Coca-Cola in 2015.Retrieved From, &lt April8, 2015

Anders,J. (2013). Coca-Cola’sMarketing Strategy: An Analysis of Price, Product and Communication.Munich: GRIN Verlag