For example, for a pack of 375mL x 18 cans of Coca-Cola soft drinks it is priced at $9. 98 instead of $10. 00. This pricing strategy makes consumers perceive the products to be cheaper. Promotional strategies The business uses a range of promotional activities, shown in the table below. Promotional strategy Explanation of promotional strategy Advertising The Coca-Cola Company uses advertising as its main source of increasing consumer awareness. It mainly uses the television. There are many television advertisements on Coca-Cola products. This source allows the company’s products to reach a large audience.
The latest television advertisement for Coca-Cola soft drinks was the `You know you want it’ advertisement. One of the older one are ` If you drink it, you get better of life’ The company also uses the radio as another source of advertisement. This is a cheaper source of approach compared to the television. Recently, the company benefited from its involvement in the world’s celebrated games such as the Olympics and the FIFA World Cup. Where millions were watching these games, the business had substantial advertising and promotions of the company’s brands.
The cost of advertising over the past 3 years is shown in Fig. (11). Cost ($ mil) YearFig. (11) The Coca-Cola Company’s advertising costs Personal selling Every year, The Coca-Cola Company has a highly trained sales team, which acts as a representative of the company to the retailers. This strategy helps to maintain service and product loyalty. It has been demonstrated by the business to be highly effective. Publicity In February 2003, Vanilla Coke was released to the media as a news brief outlining the huge profit achieved by the business (from the Sydney Morning Herald 14th February 2003).
This helped The Coca-Cola Company to strengthen the image of the business’s products. Place of distribution The Coca-Cola Company sells its products to bottling and canning operations, distributors, fountain wholesalers and some fountain retailers. These then distributes them to retail outlets, milk bar and corner stores, restaurants, petrol stations and newsagents. The Coca-Cola Company Wholesalers/distributors Retail/corner stores Restaurants, petrol stations Consumers The Coca-Cola Company’s distribution channel Place strategies
Place strategies Explanation of place strategy Indirect distribution. The Coca-Cola Company uses intermediaries in its distribution. That is, the company does not sell its products directly to its consumers. Intensive distribution The Coca-Cola Company uses the intensive distribution strategy. The business’s products are sold in almost every outlet including: · retail outlets · small shops · restaurants · petrol stations · newsagents · schools · sports and entertainment venues· from vending machines (v) Monitoring ;amp; Controlling