What have been the key success factors for Coca-Cola? There are many factors contributing to Coca-Cola’s success, however, I believe that their key success factors are Marketing and Innovation . ‘Marketing: Coca-Cola is seen as one of the founding fathers of the modern day marketing model. They were among the pioneers of advertising techniques and styles used to capture an audience. They were also one of the first companies to offer a gimmick with their product, this being a mini yo- yo. It was around 1900 when Coca-Cola began presenting their signature drink as a delicious and refreshing formula.
This slogan has been repeated for over the last 100 years selling Coke all over the world. Through its intense marketing campaigns, Coke has developed an image that is reflected in what we think of when we buy Coke and what we associate with drinking Coke. This image has been subconsciously installed in our brain by the advertising campaigns that show Coca-Cola associated with “good times. ” ???nnovation: Coca-Cola has been able to survive and grow in an ever-changing market because of its ability to systematically innovate and deliver new products.
In the late 90s the company, typically showing earnings growth of 5-20% per year, turned in three straight years of falling profits. It was apparent that the market was changing and in order to keep up with these changes, Coca-Cola had to move from a single core product to a total beverage company. Coca-Cola is one of the most recognizable brands around the globe. Having established a leading brand that fascinates consumers all over the world, Coca-Cola is widely regarded as one of the most booming organizations having achieved huge branding success.
Achieving Brand Reinvention A key element of Coca-Cola’s success can be certainly attributed to its branding strategies. Since 1866 that it started its operations until today that is a powerful, globally known corporation, the company’s brand development strategies constantly raise consumer interest and remain highly competitive. Having achieved impressive brand loyalty through continuous reinvention of its brand and focus on brand enhancement, Coca-Cola is, without any doubt, the leading non-alcoholic beverage company in the world.
Focusing on Consumer Sophistication Its branding strategies focus on the changing market realities and consumer sophistication that requires different approach and brand redesigning. In the early ears, the company focused on making the brand affordable, available and acceptable in the aim of establishing a brand that would be instantly recognizable and highly appreciated in consumers’ minds. Over the years, and in an effort to adjust its branding strategies to the new consumer demands, Coca-Cola focused on building brand identity by offering value for price, differentiation to meet consumer preferences (preference), and pervasive penetration.
Today, by testing at least 20 different brands on a monthly basis on a sample of 4,000 consumers, Coca-Cola is a corporation with strong brand identity and brand image. Evaluating Consumer Response to evaluate consumer perception and find out what consumers believe about its products. Consumers relate particular brands with particular symbols and promises that need to be met. Similarly, Coca-Cola is related to a particular level of customer satisfaction that is determined by the collective memory of its target audience.
Achieving Strategic Consensus Another important aspect of Coca-Cola’s branding strategies is the fact that strong brands make great sales and increase their revenues. However, Coca-Cola has taken the extra mile by building a brand that has managed to increase sustainable sales by ttracting and retaining the best human capital and investing in employee relations and customer relation management. This has enabled the corporation not only to achieve strategic consensus and alignment at all organizational levels, but also to trigger positive feelings in consumers’ minds.
Building Brand Loyalty Finally, strong brand image is related to brand loyalty. The more consumer demands are satisfied, the more consumers are attached to a brand and retained by default. Also, Coca-Cola’s brand image entails the purchase frequency that is boosted by effective advertising campaigns and marketing strategies. In doing so, the orporation expands its customer base and enhances customer loyalty by meeting customer needs and raising customer satisfaction.
In conclusion, Coca-Cola is a successful product, not only because it has built a recognizable logo and brand name, but mostly because it has managed to position its brand in a way that takes advantage of all the elements of marketing mix, i. e. product, place price and promotion/distribution. In doing so, it achieves to develop a brand personality and distinguish itself from competition, while offering consumers a clear view of its brand values. This leads to increased brand loyalty and satisfaction.