Coca Cola Marketing Concept Essay

The marketing concept explores the idea that the best way for companies to make long-term profit is to provide value to a defined group of consumers better than their competitors do (Baker, 2001). Using observations of their marketing decisions and activities, this essay will identify and evaluate how the company Coca Cola Limited has applied the marketing concept to their product, Coke. Whilst Coca Cola Limited uses many marketing strategies, this essay will specifically reference the products from the “Share a Coke” campaign.

After facing a decline in sales over the past decade, Coca Cola Limited created a marketing campaign called “Share a Coke”. The “Share a Coke” campaign began in 2011 when advertising company Ogilvy & Mather and Australian

Market segmentation breaks down a total target audience into separate customer groups with similar traits (Kamakura & Wedel, 2000). It consists of four different variables: geographic, demographic, psychographic, and behavioural (Bucklin & Gupta, 1992). In terms of geographic variables, the Coca Cola Limited Australian team produced a product that would be integrated into the Australian market. When the product became global, the names on the cans and bottles were tailored to the individual needs of countries. For example, in China nicknames were printed on the cans rather than first names. “Share a Coke” produced a product for a younger demographic: teenagers and young adults (Yu, 2015). They recognised that this demographic was looking for more ways to express themselves to others and for more ways to share with others due to the effects of social media sites such as Facebook and Twitter (Yu, 2015). They capitalised on this trend in a more emotional way, which applies to the psychographic and behavioural aspects of market segmentation. Coke executives recognised the need for customisable products that were catered to the individual but they made it into a connective experience. Instead of saying “Have a Coke”, the phrase “Share a Coke” was used as it is more inclusive. It encouraged consumers to spread the word and the brand rather than to

Value proposition is the bundle of benefits and values a brand offers to consumers in order to satisfy their needs and must be different to their competitors in order for them to be successful (Cova & Salle, 2008). This value proposition is gained through positioning, which refers to the place a product occupies in the consumer’s mind relative to competing products (McGuinness, Morgan, & Strong, 2003). Marketers try to create a desired positing in the minds of their target market. In the case of “Share a Coke”, the target market was previously identified as teenagers and young adults, with ages ranging 18-25 years old (Grimes, 2015). However, limited alienation worked in the favour of the campaign. Anyone from the ages 13 through to 65 years old could be included, creating mass market penetration. Coca Cola Limited and Ogilvy & Mather realised that their competitors had not released any products like the ones from the “Share a Coke” campaign. From identifying their target market, and observing their needs through social media, they discovered their consumers wanted something affordable and personalised (Grimes, 2015). Coca Cola Limited Australia developed their marketing mix to support and communicate their positioning to the target market. Thus they created a customised product at the price of a regular Coke and through vigorous promotion via