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Positioning and brand management in coca-cola


A brand is a given name or trademark associated with a specific product or a certain producer. There is a prevalent recognition that brands are essential in initiating and aiding the financial accomplishments of any business. With powerful competition and surplus ability in basically every trade section, strong brands help organizations to differentiate themselves on the market and provide a way to emphasize how their goods and services are distinctively capable of meeting customer requirements. Financial value has at all times been affixed to brands. However, only during the 1980s brand valuation strategies were instituted that could reasonably assist in the understanding and appraisal of the explicit value of brands. The structure of affixing a definite value on brands is now a commonly regarded practice. Those mixed up in field of accounting, transfer valuing and licensing agreements, mergers and acquisitions and value focused management, respect brand valuation as an integral element in modern day business. (Pressey & Selassie 2007)

In the financial strategy of attaching a value to a specific brand, brand value is undoubtedly the web present value (NPV) of the estimated brand cash flow, cut-rate by the brand discount value. The NPV computation entails both projected period and the stage beyond, implicating the capability of brands to carry on creating future revenues. The explanation underlying the creation of complex valuations of any brand are balance sheet paperwork, tax scheduling, legal action, securitization, authorization, mergers and acquisitions and shareholder relations. They concentrate on attaching an example valuation that symbolizes the worthiness of the patents. Commercial valuations are manufactured with the goal of taking care of brand architecture, profile business, market plan, budget planning and brand scorecards. Such valuations are rooted in a energetic platform of the top quality business and desire to compute the part performed by the brand in manipulating the main element components in the model. In the case of Coca-Cola positioning and brand management is the key point of the company's sustainability and success in the wild market. (Pierce 2009)


Despite the commercial need for brands, the brand management still trails behind their tangible equivalents. There are incredibly few established frameworks and procedures to control the brand advantage. On the whole, it may be said that there surely is an escalating requirement for brand valuation from both an organizational and transactional standpoint. (Pettijohn 2001) Thus, it is important for companies to highlight on the economic value of brands and desire to and purpose of the paper is to judge and assess the marketing strategies of Coca-cola. On this newspaper, it examines (1) the positioning and brand management strategy of the Coca-Cola Company and showcase how modern marketing techniques will benefit the business; (2) demonstrates the way the marketing techniques used by Coca-Cola Company to determine itself as a powerful and successful brand and (3) demonstrates how the branding and setting strategies are a major force for the business to hold on to its stronghold throughout the world, especially in a highly competitive environment.


The Coca-Cola Company is one of the biggest business corporations across the world today. Based on the company options, it performs in around 200 countries all over the country and products trademarked with the company form an enormous sales volume. The business posted as KO in the NYSE has worldwide employee strength greater than 90, 000 and noted massive income of $31. 9 billion for the fiscal yr 2008. The organization has its headquarters situated in Atlanta, Georgia. The drink brand name as Coca-Cola, a fizzing non-alcoholic beverage is the frontrunner in the firm's products and comes at shops, eateries, cafes and through soda machines across the globe. Other brands under which the organization operates are Coca-Cola, Sprite, Fanta, Coke No, Dasani bottled water, Glaceau Vitamin Drinking water, POWERade sports drinks, Minute Maid TO LOOK juices, Aquarius sports activities refreshments and Nestea. (Mudambi 2008)

Just like other major businesses, the company too faces some major challenges. The company is a U. S. established company and thus records its income in US Us dollars. The firm draws 75% from it operational capital from business outside America. (Randers & G¶luke 2007) Thus, fluctuations in forex rates impact its performance. Furthermore, the varying prices of commodities used in development also heavily affects business procedures. However, the most crucial challenge that the business faces at this moment is the gloomy economical situation in the us and all of those other world. (Shervani & Frazier 2007)

For businesses coveting high shareholder value, brands emerge as a key success aspect. Brands usually create certain demarcations from your competition it encounters and attracts customer allegiances. Set up brands can handle generating a regular flow of potential income, thus creating strong shareholder worth. To help in allocation of a reasonable value to a certain brand from the overall value of the possessing corporation, four essential benchmarks must be fulfilled associated with that brand. It needs to be separately identifiable, cosseted legally, transferable, and carrying on in nature. With this context, separability requires a condition where in fact the brand is a lawfully separable entity, evidently discernible from the additional assets possessed by the business enterprise. In certain situations, nonetheless, brands can be linked to other resources or company name in an irresolvable manner and separability may thus be complicated to feature. For example, some commercial brands may not be distinguishable product-wise if they're so employed for other products also. (Kavussanos & Nomikos 2006)

A thriving, set up brand undeniably comes with an economic worth attached to it in the sense that, the owing company is appreciated at an increased value with the brand than without it. Nevertheless, there can be found several functional concerns in building the brand's price. In some cases, separating the worthiness of the brand from the rest of the business is not possible. Any valid evaluation of a brand's prospective success requires several intrinsic subjective discernments about marketing factors. These subjective discernments lead to a divergence amongst economic validity and accounting objectivity. Therefore, Coca-cola will pay lot of importance to it brand and brand management. (Slater & Olson 2001)

In the function of considering a brand like Coca-cola one can consider what are costs associated with making, licensing, and marketing the patents, trademarks and other connected rights. On the other hand, one may focus on what they may cost to be substituted. Both these techniques, namely, historic cost method and the alternative cost method, are subjective but are standard conventions. Economic substitution evaluation is a new procedure towards brand valuation. It talks about questions such as what will be the financial durability of the top quality enterprise without the belongings of the trademarks or brands and exactly how are the levels, beliefs and outlays reliant on it. The issue with this technique is the fact it matters on subjective conclusions with regard to what another replacement might be. (Katsikeas & Theodosiou 2006)


It is obvious that the brand collateral of its products is relatively high for customers and stakeholders. In regards to a large enterprise like Coca Cola it is not hard to state that any large size change of its product or products could lead to market unrest in a short term. For instance, when the company decided to change the style of its primary product Coke in the 1980's the result was vigorously unfavorable and the company authorities was required to dump the program. The near future success of the company depends on branding strategy. (Eng 2007)

With a earlier succeed it could be safely mentioned their impetus on branding strategy for Coca-Cola and remained successful above the years and there are four core brands: coffee, tea, fruit drink/ fruit refreshments and another 500+ different flavors from Coca-Cola's along with bottled drinking water makes the company as market leader on the market. Thus, if we believe that the online marketing strategy of Coca-Cola is relatively futuristic in all sense it would be relevant enough and carefully stated. (Dobrev 2008)

The components of the brand advertising campaign must carry the fantastic benefit for being very affordable. Some of the costs that require to be looked at are related to (1) publishing the promotional fliers and the posters, as well as costs associated with adding the posters on buses, (2) creating and promoting the website and (3) employing and training the staff that provides more information. (Stewart 2008)

The evaluation of the promotional marketing campaign is quite important at this point, inducing any perspective changes that might need to be made. In this particular sense, there are two important things that need to be considered when undertaking the campaign analysis: (1) the number of new clients after the start of the promotional marketing campaign and (2) the number of new clients which were a direct result of the promotional campaign. As the first solution is quantitative and so easier to assess, the second some may be qualitative and, hence, more difficult to address. However, we have to be able to determine the effectiveness of the promotional marketing campaign (at least in the first period) by just evaluating the number of new clients. In the next stage, a qualitative examination may also be necessary, as we might believe that the word - of - oral cavity process will start to set-up additional clients. (Collins 2006)

According to many sources, the key goal of international marketing strategy is always to evaluate the efficiency of the marketing plans that the corporation has been using, determine the means to optimize these procedures and enhance the results that the marketing team has been producing. (Anderson & Wen-yeh 2006)

At commercial level, we have been discussing branding placement and proper marketing though brand management. This might mean that the chief executives have identified both the strategic paths that the company will be getting close to in the web period of time and the specific ways where marketing provides the correct help. This might go anywhere from discovering new potential sections of consumers to developing new promotional programs to address them. In cases like this, the audit can look at the efficiency with which the corporation has were able to fulfill its suggested strategic market goals and how these can be upgraded in the foreseeable future. At the proper business product (SBU) level, we pay more attention at an functional level of which the questions asked are how marketing tools can efficiently help in direct sale of the merchandise. At the product product level, we are worried with the product mixture, especially in terms of price, distribution, how changes in these variables have influenced the overall sales. (Weaver 2007)

From the idea of view of Coca-Cola it might be relevant to point out that strategic brand planning in futuristic framework should rely on its current position as market leader, with a detailed eyes on the possible future developments of the marketplace that needs to be kept in sight in order to be able to develop a coherent long-term strategic plan, likely to bring both an elevated market talk about and the occurrence in other market areas, with possible economies of level and increased revenues. In conclusion it ought to be stated that therefore, there are two guidelines that the business should approach, closely correlated with each other. The two proper guidelines are (1) the sufficient exploit of market position, with a tendency towards improving the position on the marketplace and (2) diversification. (Alizadeh & Koekebakker 2007)

The setting and brand management strategy of the Coca-Cola

The setting strategy utilized by Coca-Cola has allowed these to paint a suitable image of themselves in your brain of these customers as the sole "Real One. They have got designed their placement strategy in order to draw a highly effective picture of these products offered for their customer. Once they had decided the market segment they wished to target and compete in, they obviously developed an image of that targeted market portion and properly defined their products within their setting strategy. Through their positions strategy they emphasized on their different and unique characteristics with relation to their competitive brands stressing on their personality. They associated their product with the customer's principles and knowledge highlighting their benefits. Their setting strategy also included contrast of Coca-Cola's products with those of their competitors, like Pepsi, so that drive their customers to believe that Coca-Cola's products had higher quality and standard.

The Coca-Cola brand has turned out to be one of the most recognizable and a popular make of all times and their beverage company is probably the world's largest drink companies. They have grown to be a successful brand since they have used a variety of brand management strategies depending on the market situation and target market. The strategies include hybrid, manufacturer, specific, private, family and common brand management strategies. However, the most applied brand management strategy she used is the individual brand management strategy since all their major products have specific brands, like Sprite and Fanta. Coca-Cola's world-wide acceptance comes from the simple fact they have spent billions of dollars to promote and develop their trademark and brand name. For this reason today more than 95% of our own global people recognizes Coca-Cola with their special writing and their prominent red and white color.

As a matter of fact, Coca-Cola Company came into being in 1986 and within days gone by 2 decades, it has been able to create itself among the leading beverage companies on the planet. At the beginning, Coca-Cola has used modern marketing techniques and she actually is even seen as the "founding dad of our present day marketing model. The brand used a number of modern marketing techniques which includes immensely benefited the business. This consists of aiming their marketing concept totally towards their customers and allowing the emphasis of the customers to percolate trough almost every department whether individual resource, production or financing. Another beneficial modern marketing approach includes taking of most with their important decisions with relevance to the prevailing market things to consider, position and segmentation. Aside from inserting importance on market implications, there are 3 techniques of modern marketing that your company can highly benefit from - concentrating on customers, coordination and profit orientation. The company's focus should be on the consumer's point of view so that they can totally understand which service or product the buyer needs. Because the marketing mix can be an interconnected system, the entire marketing program must be looked at and designed as a whole.

In addition, the marketing techniques used by Coca-Cola allow them to listen to the needs and demands of the folks around the globe who would like beverages that lengthen over a wide variety of occasions and preferences. Their online marketing strategy has allowed them to produce great beverages which contribute towards each and every community of the world. Their marketing techniques display their dedication towards diversity, health, education and wellness, thus establishing them as one of the most successful and powerful brands of all time. Coca-Cola's marketing techniques involves an extremely productive marketing combine strategy merging product, price, campaign and place. They not only provide the customers using their products, soft drinks, but also several services, like films and vacations, allowing the consumers to be completely satisfied. Their main prices strategy includes penetration charges which has allowed them to seize a footing in their marketplace by winning a significant part of the market show. After establishing customer commitment, Coca-Cola then slowly but surely raised their product prices. Coca-Cola is definitely on the list of fore-runners in gimmicks and advertising styles and techniques which fall under promotion of marketing techniques. They may have effectively use their promotional strategies for persuading their customers into buying their original products and using the new ones. They have used a blend of public relations, advertising, personal advertising and sales promotion as a part of their marketing techniques. Coca-Cola have also carefully chosen the place or distribution approaches for their company. Their techniques include immediate, selective, rigorous and exclusive distribution. It really is completely apparent of their widespread reputation and reputation that these marketing strategies employed by Coca-Cola has helped them set up themselves as being among the most powerful and successful make of contemporary times, one that may fortunately be considered a complex yet vital part of your modern world culture.

In a highly competitive world such as ours effective branding and setting strategies are extremely essential since it performs as a major force for the business and allows it to preserve its stronghold all around the globe. The branding strategies of a firm accurately define the personality of the company, its products and services. Every company, whether small or large, consider their branding strategies to be an important part of the complete business. Through their branding strategies they create themselves as a brand which presents quality and standard to their customers. A brand name helps the differentiation among customers based on their unique qualities from other similar products.

Additionally, the positioning strategy of the company helps it to determine the profitability of their various products and services. In order for a company to reach your goals simply having a quality product is not enough inside our capitalistic world economy. The products and services must have a definite and clear image and really should be offered to the target customers at competitive prices. This is exactly what a positioning strategy creates. Therefore, setting strategies helps companies create a good and desired image of the merchandise for the customers, producing a immediate contact between them and the company.


The discussion that the brands or brand names along using its brand position and brand management of a business like Coca-Cola, under which its goods or services are sold, embodies as much a secured asset as their tangible counterparts, is progressively gaining momentum. Noticing the necessity of implicating the worthiness of brands in the accounts, some large companies in the united kingdom have initiated the capitalization of the worthiness of their brands in their documented financial declarations. The problem logically crops up in relation to if the implication of the entity as a secured asset in the financial documents serves any real significant function or is merely another effort by the brand accountants to generate more opportunities for themselves.


This report also offers a number of recommendations for Coca-Cola, which may help the business, come out of the financial recession. It highly advices the management to look at a broader point of view and develop a long-term strategy rather than focusing on short term strategies. The declining character of sales curves, income and decreased rate of expansion can be attributed to the recession and could be consider being quite natural in today's instable monetary conditions. However, this will not be considered a reason to stress and make hasty decisions, which might bring about adverse effects and outcomes and could ruin the business. On the contrary, it ought to be seen as an chance to strengthen and stabilize the company from its roots. Indeed, recession can be considered an opportunity to innovate, utilize, and take advantages of the opportunities created by the economical slump. (Dobrev 2008) Investing in emerging marketplaces like India and China, which illustrate significant progress opportunities, is surely a viable option for the business. It increases the customer reach and enhances the brand diversity. Capitalizing on the opportunities, which these emerging markets offer, can be a boost to the business, particularly when domestic markets in america are not carrying out so well. As a result, the company must pay more importance to its brand position and brand management and redeem the low revenue because of the recession from these rising markets.

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