Coca Cola was definitely focused on the internationalization of is brand. Therefore, it exists in almost 200 countries and has a global brand value and brand loyalty contrary to most brands in the world.
Nowadays, Coke wants to raise brand loyalty and brand equity, throughout communication, but also innovation in order to differentiate is product.
A differentiation strategy is the development of a product or service that offers unique and differentiating attributes which are valued by customers and perceive to be better than or different from the products of the competition.
The value added by the uniqueness of the product may allow the firm to charge a more expansive price for it (premium price).
The extra price is supposed to cover the costs incurred in developing and offering the product.
Consumers are willing to pay more for this unique product for which they can’t find any substitute, that’s also why companies charge extra cost.
Coca Cola Company spends round about 20% of their total advertisement budget for maintaining and communicating on its differentiation strategy. Similarly coca cola has created its differentiation by utilizing soft sell approach. Company has successfully positioned itself on the following standards:
· Corporate reputation for quality and innovation: one of the best place to work
· Successful communication of perceived strengths of the product: Integrated marketin strategy
· Symbol of joy and fun
Coca-Cola has unquestionably chosen a differentiation strategy. This has rapidly been its strategy since the early days of the company’s life.
It has thus based its strategy on diversification as its main brand is derived by sub-products maintaining a strong affiliation with Coca Cola: the Diet Coke Cola (Coca Cola light, zero ...), Lemon Coke, Cherry Coke, Vanilla Coke…. it is more about a strategy of concentrating on the main product, in order to increase the volume of sales.
However, Coca Cola needs to stay vigilant regarding the competition and its evolution in order to avoid being the stuck-in-the-middle manufacturer. The company has to differentiate confidence from content so that they stay aware of the situation and the context they are operating in, and in order to prosper in the future thanks to a stronger focus on their differentiation strategy.
The Coca Cola formula is THE secret of the company. It is one of the most held trade secret ever, and only few employees have access to it. A book, “For God, Country and Coca Cola”, has proposed a recipe of coca cola, but it is not the complete original one:
The packaging and shapes of Coca Cola soda products are diversified and adapted to the target and to the moment of consumption. The core brand is Coke (best selling soft drink around the world) and contains different kind of products.
Thus, all over the world, the classic Coke had the same color: red. This is the color consumers associate with coca cola.
Diet Coke is grey, it is more “shiny” as it reflects more the light.
Coke Zero is black, corresponding to the target (men).
The different shapes are:
- Glass bottle (0,25l; 0,5l; 1,5l)
- Plastic bottle (0,5 l; 1l; 1,5l, 2l)
- Cans (0,25l; 0,33l)
Coca cola is committed to strict environmental guidelines in order to ensure quality for the consumer but also to ensure the packaging has as less as possible impact on environment.