Coca-Cola: best example of leading competition with excellent Brand Strategy

Undoubtedly, one of the most recognisable brands in the world is Coca-Cola. Iconic in more ways than one – catchy logo, a ‘secret’ recipe and brilliant marketing – Coca-Cola has dominated the beverage industry for a few decades. No matter where in the world you are, you have either come across their jingles, seen their advertisements, or had one for yourself.

The next time you are in a restaurant or a café, take a look around and try spotting a bottle or can of Coke. Shouldn’t be tough! That’s how beautifully the company markets itself.

Every brand tells a story, in its own way. How well the story is conveyed to the consumer, and how well it is perceived by the consumer, determines the value of the brand’s identity. Coca-Cola has maintained its identity for as long as the brand has existed. Despite some ups and downs, which have been nothing short of learning curves, the company has held its position at the helm, leading the beverage industry with a brilliant example of brand strategy.

Fun fact: Originally, the cola syrup was meant to be a solution for headaches. But an accidental addition of soda, instead of water, resulted in a refreshing drink.

The importance of Brand Strategy

One of the most important factors for Coca-Cola’s success has been its outstanding brand strategy. Operating in a highly competitive market, brand placement is very crucial. We, as consumers, are well aware of the competitive rivalry between Coca-Cola and Pepsi. Two giants in the beverage industry, they have never competed on prices. It was quite simple for them to understand that competing by slashing prices will benefit neither, and would in-turn result in losses. Thus, the intended competition was always on customer acquisition. With both having loyal customers, the brand images were quite uniquely set apart.

Coca-Cola knew the emotion it had tapped and ensured the consistency in all its campaigns.

A beautiful example is the slogan they came up with for the Indian Market: “Thanda matlab Coca-Cola”, which, when translated, is “Chilled means Coca-Cola”. This resonated with the youth with such ease, that anyone thinking of having a ‘cold drink’ was immediately triggered with the thought of Coca-Cola.

But what has been the brand’s strategy?

Coca-Cola way of branding

Let us carefully break the company’s brand strategy down into 3 simple parts.

1. Market Segmentation
   Coca-Cola has never competed on prices. They knew (and still know) what a consumer expects from their beverage. Hence, they always only competed on market capitalisation and consumer acquisition.
   Wherever Coca-Cola entered, they tapped the emotion of the audience, with captivating advertisements, which focused on the emotion, rather than the company. This brought about a sense of connection between the product and the potential consumers. The consumers perception matters when they recognise a product in a store. According to human psychology, it triggers the same emotion that your brain associated when you came across the brand for the first time.
   
   In a study, a brand conducted a test at a supermarket. On a table were placed a bottle of Coca-Cola, Pepsi, and the supermarket’s own cola. The customers walking by were asked if they could identify the three brands if they were blindfolded. When blindfolded, none of the participants got the correct names associated with the respective bottles, purely by tasting the colas. But when the blinds were taken off, and they were asked again which cola they’d like to try again, most opted for Coca-Cola. This test proved the brand’s visual effects on the minds of its consumers. Coca-Cola’s branding and marketing techniques have played a major role in the brand’s general perception. And this perception has translated into product development.
2. Consistency
   When it comes to product development, Coca-Cola has ensured that the taste never changes. And neither does the emotion it evokes – happiness! The Coca-Cola experience has always been promoted as one of ‘happiness’, whether it was their “Buy the world a Coke” campaign or the “Share a Coke” campaign.
3. Smart Competition
   Though they did experiment a few times with the packaging, they realised that their consumers (and the new consumers too) preferred the original packaging. Coca-Cola did try competing with its rivals on taste, once, by making the ‘New Coke’ a sweeter version of the original. Needless to say, it was met with criticism from the brand loyalists. In an attempt to attract new customers, Coca-Cola risked losing their existing loyal customers, and immediately called to rectify their mistake.
   But competition is not new to Coca-Cola. Every market they have entered, so have their rivals. And all these locations have their own local brands too! Being a giant in the beverage industry, the company has taken the chances of acquiring local competition and bringing those brands under its umbrella. Not only is competition taken care of, but this way, Coca-Cola places itself right next to the locally known labels in stores.

Coca-Cola has been at the top of its game for a long time now, and credit goes to the company’s ability to portray itself as the go-to brand. Their marketing tactics have been used as examples in many classrooms and will continue to be so in the far future too. Brand Strategy is a key element responsible for the success of the beverage company.

Which brand strategy are you inclined to try? What would you do if you were in their position? Let us know in the comments below.