coca cola develops the african market case study

Coca-Cola in Africa: a long history full of unexpected twists and turns

Senior Lecturer in Critical Writing, University of Pennsylvania

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Sara Byala does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

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A new book called Bottled: How Coca-Cola Became African tells the story of how the world’s most famous carbonated drink conquered the continent. It’s a tale of marketing gumption and high politics and is the product of years of research by critical writing lecturer Sara Byala , who researches histories of heritage , sustainability and the ways in which capitalist systems intersect with social and cultural forces in Africa. We asked her some questions about the book.

What do you hope readers will take away?

There are three main takeaways. The first is that while Africa is largely absent from books on Coca-Cola, the company’s imprint on the continent is enormous. It is present in every nation. Most estimates put Coke as one of the largest private employers in Africa, if not the largest. Beyond official jobs, the company has been shown to have a multiplier effect that means that for each official job, upwards of 10 other people are supported.

The second takeaway is that Coke’s story in Africa is an old one. It starts with its use of the west African kola nut , from which it takes its name (if no longer its source of caffeine ). Arriving in Africa in the early 1900s, it’s a story that is deeply and, often surprisingly, entangled with key moments in African history. This includes the end of apartheid in South Africa and the advent of postcolonial African nations.

Third, I want readers to see that while we may assume that a multinational company selling carbonated, sugary water is inherently a force for ill, both the history of Coke in Africa and my fieldwork suggest a far more complicated story. Coca-Cola is what it is today in Africa, I argue, because it became local. It bent to the will of Africans in everything from sport to music to healthcare . Its ubiquity thus tells us something about African engagement with a consumer product as well as the many ways in which ordinary people wield power.

How did Coca-Cola first arrive in Africa?

Coca-Cola doesn’t export a finished product from its corporate headquarters in the US. It sells a concentrate , which comes from a handful of locations around the globe, including Egypt and Eswatini. This concentrate is sold to licensed bottlers who then mix it with local forms of sugar and water before carbonating and bottling or canning it.

Coca-Cola lore says that the company first secured local bottlers for its concentrate in South Africa in 1928, its first stop on the African continent. By combing through old newspapers, archival documents, and pharmaceutical publications, however, I found evidence to suggest that Coke may in fact have been sold in 1909 in Cape Town as a short-lived soda fountain endeavour. This is just 23 years after the product was invented in Atlanta, Georgia.

It was neither easy nor assured that Coca-Cola would take off anywhere in the world upon its arrival. The early chapters of my book detail the often ingenious lengths that bottlers had to go to to get Coke off the ground. This included creating a new line of sodas to support the fledgling product called Sparletta . This includes green Creme Soda and Stoney ginger beer , both still available for purchase. Later chapters explore the routes by which the product spread across the continent, by detailing everything from the co-branding of petrol stations with Coca-Cola, to the rise of Coke beauty pageants, the birth of local forms of Coke advertising, the proliferation of Coca-Cola signage, and much more.

What role did it play in apartheid South Africa?

Coca-Cola was entrenched in South Africa before the advent of the racist, white minority apartheid state in 1948. While the company largely attempted to stay out of politics in South Africa, much as it did elsewhere in the world, it resisted certain “petty apartheid” rules. For example, the washrooms and lunchrooms in its plants were open to all ethnic groups, unlike the “whites only” facilities established under apartheid. A turning point came in the 1980s when, in tandem with activism in the US calling on the company to redress racial imbalances in America, the company was forced to reexamine its racial politics in South Africa as well.

What followed was perhaps the most interesting chapter in the story of Coca-Cola in Africa. Breaking with established precedent, the company took a stance against the apartheid state. Coca-Cola executive Carl Ware led the way here. Under his direction , the company crafted a unique form of disinvestment that enabled it to do what no other company managed: keep the products in the country while depriving the apartheid state of tax revenue. To do this, the company sold all its holdings to a separate business that continued to sell Cokes. It then moved its concentrate plant to neighbouring Eswatini, leaving Coca-Cola with no assets or employees in South Africa.

In part, this was possible because the company aligned itself with the African National Congress (ANC) , making a host of moves to help to end apartheid. These included meeting in secret with ANC leadership, funding clandestine meetings between the ANC and businesspeople, and setting up a charitable fund headed by Archbishop Desmond Tutu to support Black educational empowerment. In the book, I document these activities for the first time with extensive interviews and archival material.

It was during this era of disinvestment that Coca-Cola exploded within densely populated and remote parts of the country, providing on-ramps to economic participation for scores of South Africans that were later replicated with its global 5x20 project to empower women in business.

This spread in turn drove the consumption of liquid sugar to new heights, causing a host of other problems such as diabetes and dental cavities , which both the company and my book tackle too.

What I demonstrate in the book is that Coca-Cola’s shrewd positioning at the end of apartheid allowed it to emerge, in the post-apartheid landscape, ready not only to renew business in South Africa, but also to reinvigorate its presence on the continent at large. The question is how to weigh this spread (and its attendant benefits) against the costs.

• African history
• South African history
• African business
• Desmond Tutu
• African National Congress (ANC)
• Beverage industry
• Africa narrated
• Audio NOA narrated
• History + Heritage

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Coca-Cola Marketing Case Study

From the star ‘Coca-Cola’ drink to Inca Kola in North and South America, Vita in Africa, and Thumbs up in India, The Coca-Cola Company owns a product portfolio of more than 3500 products . With the presence in more than 200 countries and the daily average servings to 1.9 billion people, Coca-Cola Company has been listed as the world’s most valuable brand with 94% of the world’s population recognizing the red and white Coca-Cola brand Logo . Moreover, 3.1% of all beverages consumed around the world are Coca-Cola products. All this because of its great marketing strategy which we’ll discuss in this article on Coca-Cola Marketing Strategy .

Coca-Cola –

• has a Market capitalization of $192.8 Billion (as of May 2016).
• had 53 years of consecutive annual dividend increases.
• with the revenue of over $44.29 billion, is not just a company but an ECONOMY.

The world knows and has tasted the coca cola products. In fact, out of the 55 billion servings of all kinds of beverages drunk each day (other than water), 1.7 billion are Coca-Cola trademarked/licensed drinks.

Marketing history

Market research in the beginning.

It all started 130 years ago, in 1886, when a Confederate colonel in the Civil War, John Pemberton, wanted to create his own version of coca wine (cola with alcohol and cocaine) and sent his nephew Lewis Newman to conduct a market research with the samples to a local pharmacy (Jacobs pharmacy). This wasn’t a new idea back then. The original idea of Coca wines was discovered by a Parisian chemist named Angelo Mariani.

Pemberton’s sample was sold for 5 cents a glass and the feedback of the customers was relayed to him by his nephew. Hence, by the end of the year, Pemberton was ready with a unique recipe that was tailored to the customers taste.

Marketing Strategy In The Beginning

Pemberton soon had to make it non-alcoholic because of the laws prevailing in Atlanta. Once the product was launched, it was marketed by Pemberton as a “Brain Tonic” and “temperance drink” (anti-alcohol), claiming that it cured headaches, anxiety, depression, indigestion, and addiction. Cocaine was removed from Coke in 1903.

The name and the original (current) Trademark logo was the idea of Pemberton’s accountant Frank Robinson, who designed the logo in his own writing. Not changing the logo till date is the best strategy adopted by Coca-cola.

Soon after the formula was sold to Asa G Candler (in 1889), who converted it into a soda drink, the real marketing began.

Candler was a marketer. He distributed thousands of complimentary coca-cola glass coupons, along with souvenir calendars, clocks, etc. all depicting the trademark and made sure that the coca cola trademark was visible everywhere .

He also painted the syrup barrels red to differentiate Coca-Cola from others.

Various syrup manufacturing plants outside Atlanta were opened and in 1895, Candler announced about Coca-Cola being drunk in every state & territory in the US.

The Idea Of The Bottle

During Candler’s era, Coca-Cola was sold only through soda fountains. But two innovative minds, Benjamin F. Thomas and Joseph B. Whitehead, secured from Candler exclusive rights (at just $1) for bottled coca cola sales.

But Coca-Cola was so famous in the US that it was subjected to imitations. Early advertising campaigns like “Demand the genuine” and “Accept no substitutes” helped the brand somewhat but there was a dire need to differentiate. Hence, in 1916, the unique bottle of Coca-Cola was designed by the Root Glass Company of Terre Haute, Indiana. The trademark bottle design hasn’t been changed until now.

Coca-Cola Worldwide

In 1919, Candler sold the company to Robert Woodruff whose aim was to make Coca-Cola available to anyone, anytime and anyplace. Bottling plants were set up all over the world & coca cola became first truly global brand.

Robert Woodruff had some other strategies too. He was focused on maintaining a standard of excellence as the company scaled. He wanted to position Coca-Cola as a premium product that was worthy of more attention than any of its competitors. And he succeeded in it.  Coca-Cola grew rapidly throughout the world.

Coca-Cola Marketing Strategies

The worldwide popularity of Coca-Cola was a result of simple yet groundbreaking marketing strategies like –

Consistency

Consistency can be seen from the logo to the bottle design & the price of the drink (the price was 5 cents from 1886 to 1959). Coca-Cola has kept it simple with every slogan revolving around the two terms ‘Enjoy’ and ‘happiness’.

From the star bottle to the calendars, watches and other unrelated products, Candler started the trend to make Coca-Cola visible everywhere. The company has followed the same branding strategy till now. Coca-Cola is everywhere and hence has the world’s most renowned logo.

Positioning

Coca-Cola didn’t position itself as a product. It was and it is an ‘Experience’ of happiness and joy.

Franchise model

The bottling rights were sold to different local entrepreneurs , which is continued till now. Hence, Coca-cola isn’t one giant company, it’s a system of many small companies reporting to one giant company.

Personalization & Socialization

Unlike other big companies, Coca-Cola has maintained its positioning as a social brand. It talks to the users. Coca-Cola isn’t a company anymore. It’s a part of us now. With its iconic advertising ideas which include “I’d Like to Buy the World a Coke” & “Share a Coke”, it has maintained a special spot in the heart of its users.

Diversification

Coca-Cola, after marking its presence all over the world, took its first step towards diversifying its portfolio in 1960 by buying Minute Maid. It now operates in all but 2 countries worldwide with a portfolio of more than 3500 brands.

Coca-Cola Marketing Facts

• Logo & bottle design hasn’t changed since the start.
• During its first year, Coca-Cola sold an average of 9 drinks a day.
• Norman Rockwell created art for Coke ads.
• Coke has had a huge role in shaping our image of Santa Clause.
• In the 1980s, the company attempted a “Coke in the Morning” campaign to try to win over coffee drinkers.
• In 1923, the company began selling bottles in packages of six, which became common practice in the beverage industry.
• Recently, it was in the news that Verizon acquired Yahoo for around $5 billion which is more or less the same amount the Coca-Cola Company spends on its advertisements.
• The number of employees working with the Coca-Cola Company (123,200 to be exact) is more than the population of many countries.

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A startup consultant, digital marketer, traveller, and philomath. Aashish has worked with over 20 startups and successfully helped them ideate, raise money, and succeed. When not working, he can be found hiking, camping, and stargazing.

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Coca-Cola Beverages Africa (CCBA)

Coca-Cola Beverages Africa (CCBA) the 8th largest Coca-Cola bottling partner worldwide. In 2018, they shipped over 916 million cases throughout Southeast and East Central Africa.

Business Challenge

Like many manufacturers worldwide, CCBA focuses on continuous improvement. Over the years, they’d made some progress, such as reducing stock outs from 29% in 2013 to 18% in 2016 and raising on-time in-full (OTIF) shipments from 65% to 68% during the same period. But those achievements weren’t nearly good enough for CCBA to meet the growing demands of the markets it serves.

Part of the problem was the proliferation of SKUs and product categories. From 2013 to 2016, SKUs had grown from 370 to 580 and product categories had expanded from 7 to 18. Compounding the issue of complexity, CCBA was still planning demand from forecasts, and despite their best efforts, they were unable to raise accuracy much above 68%.

Finally, the organization lacked the visibility they needed to manage replenishment well. So, like many other manufacturers that rely on forecast-driven planning, they had too much of the wrong materials and not enough of the right. Their network of planners relied on homegrown spreadsheets and judgement calls to determine what they needed to order.

“If I had to summarize DDMRP into one word it would be visibility. We are able to see, at first glance the actual status of our raw materials and finished goods, which guides us in the right direction to do replenishments in the right order.”

In 2016, CCBA decided to take a closer look at Demand Driven Material Requirements Planning (DDMRP), a replenishment methodology that aligns inventory replenishment to true market demand. By October of the same year, they started sending planners through training, setting them on the path to become Certified Demand Driven Planners. Then, in February 2017, they launched their first pilot at a bottling plant in Namibia. This plant shipped more than 14M cases annually across 135 SKUs.

In March of 2018, after holding group-wide Demand Driven Planner training, CCBA rolled out a spreadsheet-based DDMRP solution across Kenya, Uganda, Ethiopia, Ghana, and Tanzania. By September of 2018, however, CCBA decided the time had come to replace their DDMRP spreadsheets with a packaged solution that would help them streamline their DDMRP operations to achieve even greater improvements.

After a thorough investigation that included developing a solution in-house, they chose Intuiflow by from Demand Driven Technologies (formerly Replenishment+). Once again, the organization rolled the solution out in Namibia first with significant results, including a 29% reduction in total inventory within the first two months.

For CCBA, the journey continues. In the fall of 2019, the organization rolled out Intuiflow to Uganda, Mozambique, and Tanzania with additional locations planned.

Steven Wicks, Planning Manager talks about the impact DDMRP has made in Namibia.

Click here to see the webinar presenting their full journey.

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Coca-Cola Marketing Strategy: A 2024 Comprehensive Case Study

Introduced over a century ago, Coca-Cola remains the world’s most consumed soda, illustrating its unparalleled ability to engage and captivate consumers globally. This case study explores the marketing strategy of Coca-Cola that continues to make it the leading manufacturer and licensor of nonalcoholic beverages, offering a staggering 3,500 varieties across more than 200 countries. 

From Pharmacist's Elixir to Global Refreshment Drink

On May 8, 1886, Dr. John Pemberton created what is now known as Coca-Cola. Originally sold at a pharmacy in Atlanta as a medicinal elixir, Coca-Cola has transformed into a global refreshment enjoyed daily by millions. 

What is Coca-Cola's Marketing Strategy?

The strategic marketing decisions made by Coca-Cola are largely responsible for its success. The company's approach includes comprehensive branding , widespread distribution, creative advertising, and innovative customer engagement tactics. Coca-Cola’s overarching vision continues to drive its global agenda, remaining focused on refreshing the world in mind, body, and spirit and making a difference to the people and communities it serves. This vision has enabled the company to maintain direction and momentum through periods of uncertainty.

Coca-Cola Target Audience

• Age : Targets youths (10–35 years) with celebrity endorsements and vibrant campaigns, while also catering to health-conscious older adults with products like Diet Coke and Coke Zero. ‍
• Income and Family Size: Offers various packaging options across different price points to ensure affordability for students, middle-class families, and low-income groups. ‍
• Geographical Segmentation: Tailors its formulas to suit regional tastes, such as sweeter versions in Asia, to resonate with local preferences. ‍
• Gender: Differentiates offerings like Coca-Cola Light for women and Coke Zero for men, focusing on taste preferences linked to gender.

Advertising

From early advertisements in newspapers to groundbreaking campaigns like "I’d Like to Buy the World a Coke," Coca-Cola has always known the power of effective advertising. Each campaign not only promoted their product but also cemented Coca-Cola’s place in the cultural landscape. Coca-Cola’s advertising campaigns are designed to resonate on a global scale while maintaining local relevance. These strategies include:

• Creative Campaigns: Engaging and visually appealing ads that capture the essence of joy and refreshment. ‍
• Emotional Branding : Utilizing regional languages and culturally relevant content to connect emotionally with consumers. ‍
• Celebrity Partnerships: Collaborating with local and international celebrities to widen reach.
• Wide Coverage: Utilizing multiple channels, from traditional media to digital platforms. ‍
• Engagement : Interactive campaigns and social media strategies to engage with a younger audience.
• Sponsorships : Long-standing partnerships with major events like the Olympics, FIFA World Cup, American Idol and popular TV shows enhancing brand visibility and consumer connection globally. ‍

Coca-Cola has also embraced personalization in its past campaigns, from names on bottles to personalized marketing emails, enhancing consumer loyalty and personal connection with the brand.

1. "Share a Coke" Campaign

Launched initially in Australia in 2011, the "Share a Coke" campaign is one of the most celebrated and successful marketing strategies in Coca-Cola's history. The campaign was groundbreaking in its approach—replacing the iconic Coca-Cola logo on bottles with common first names. The idea was simple yet powerful: personalize the Coke experience to encourage sharing and create a personal connection with the product. Consumers could find bottles with their names or the names of friends and family, making it not just a purchase but a personalized social experience. The campaign heavily leveraged social media, encouraging people to share their Coca-Cola moments online with the hashtag #ShareaCoke, which amplified the campaign's reach exponentially. After its initial success in Australia, the campaign rolled out in over 80 countries with country-specific names and designs, each resonating with local audiences and cultural nuances.

2. "I'd Like to Buy the World a Coke" (Hilltop)

Originally aired in 1971, the "Hilltop" commercial for Coca-Cola, also known as "I'd Like to Buy the World a Coke," remains one of the most iconic advertisements in the history of television. Conceived by Bill Backer of McCann Erickson, the commercial featured a diverse group of young people from all over the world singing on a hilltop in Italy. The ad's simple yet profound message of hope and unity, expressed through the lyrics "I'd like to buy the world a home and furnish it with love," struck a chord during a time of political unrest and social change. The commercial became more than just an ad; it became a cultural icon, evoking feelings of peace and camaraderie at a global scale. The ad's popularity led to several remakes and re-releases over the decades, including a famous 1990 version featuring the original singers and their children, and a Super Bowl version in 2011.

3. "The Happiness Machine"

As part of its "Open Happiness" campaign, Coca-Cola launched "The Happiness Machine" video in 2010. The campaign featured a specially designed Coke vending machine placed in a college campus that dispensed not just bottles of Coke but surprising acts of "happiness" – from pizza and flowers to balloon animals. The video quickly went viral, thanks to its genuine, unscripted reactions and feel-good vibe. It amassed millions of views on YouTube, bringing widespread attention and goodwill toward the brand. This campaign emphasized Coca-Cola's focus on selling experiences and emotions associated with the brand, not just the product. It highlighted the brand’s commitment to spreading joy and happiness. The success of the "Happiness Machine" led to the creation of similar campaigns globally, harnessing the power of viral marketing and showing the brand's innovative approach to engaging with younger audiences.

Social Media and Digital Marketing

Coca-Cola has evolved its marketing strateg y from traditional mediums to a more integrated, multi-channel approach. The focus is now on building personal connections with consumers and leveraging digital platforms for targeted and engaging marketing campaigns. This shift has allowed Coca-Cola to maintain its relevance. Coca-Cola has embraced the digital age with robust online presence across platforms like Facebook, Twitter, Instagram, YouTube, and Snapchat. The brand leverages SEO , email marketing , content marketing , and video marketing to engage a broader audience effectively.

Coca-Cola Marketing Strategy

Coca-Cola employs a dual-channel marketing strategy :

• Personal Channels: Direct interaction with consumers to build personal connections. ‍
• Non-Personal Channels: A mix of traditional and digital media, including newspapers, TV, social media, email, and outdoor advertising, to ensure widespread reach. ‍

Coca-Cola’s Marketing Mix: The 4 Ps

• Product Strategy: Coca-Cola boasts an extensive portfolio of 500 products, positioned strategically within the market to maximize reach and profitability. Coca-Cola’s commitment to maintaining its original formula and ensuring product quality has fostered deep brand loyalty . Even when new recipes were introduced, such as New Coke, the public’s attachment to the original formula brought it swiftly back. To cater to diverse consumer tastes, Coca-Cola has expanded its product portfolio to include juices, teas, coffees, and other beverages. This diversification strategy helps the company penetrate different market segments. ‍
• Pricing Strategy: Initially maintained a constant price for decades, it now employs a flexible pricing strategy to remain competitive without compromising perceived quality. Coca-Cola's pricing strategy is carefully crafted to remain competitive while ensuring profitability.  ‍
• Place Strategy: Operates a vast distribution network across six global regions, supported by an extensive supply chain involving bottling partners and distributors, ensuring global product availability. ‍
• Promotion Strategy: Invests heavily in diverse advertising strategies to maintain brand visibility and consumer engagement across various platforms. ‍ ‍

Coca-Cola's Growth Strategy

• Winning More Consumers : Expanding the consumer base through effective marketing and innovative product offerings. ‍
• Gaining Market Share: Outperforming competitors by understanding consumer needs better and responding quickly. ‍
• Maintaining Strong System Economics: Ensuring profitability and sustainability across the supply chain. ‍
• Strengthening Impact Across Stakeholders: Building a positive influence on consumers, communities, and environments. ‍
• Equipping for Future Success: Preparing the organization to meet future challenges through continuous learning and adaptation.

Additionally, sustainability is integral to Coca-Cola's growth strategy. The company has focused on reducing its environmental footprint, using resources more efficiently, and promoting recycling. These efforts are aligned with its mission to make a difference, ensuring that growth is sustainable over the long term. 

These objectives serve as the north stars for Coca-Cola, guiding all strategic decisions and initiatives.

Brand Portfolio Optimization

The iconic Coca-Cola logo and the classic bottle design are instantly recognizable worldwide, making branding a cornerstone of their strategy. This section examines how consistent branding across various platforms plays a critical role in Coca-Cola's marketing . Keeping a uniform visual identity and engaging in significant sponsorships have allowed Coca-Cola to remain relevant and beloved by generations. In a significant move to optimize its brand portfolio , Coca-Cola reduced its brand count from 400 to 200 master brands. This strategic decision was aimed at focusing on those brands that align with and support the company's growth objectives. By doing so, Coca-Cola has ensured that it invests in brands with the highest potential for growth and profitability, balancing global, regional, and local brands to cover all drinking occasions.

Managing Missteps With Grace

Coca-Cola’s ability to handle marketing and business errors gracefully, such as the New Coke debacle, shows a brand well-versed in crisis management and responsive public relations.

Lessons for Marketers

• Brand Identity is Essential: A strong, consistent brand identity is vital for long-term success. ‍
• Prioritize Product Quality : High product quality should always be a priority, supporting marketing efforts and building consumer trust. ‍
• Strategic Pricing is Key: Effective pricing strategies can significantly impact brand perception and customer loyalty. ‍
• Explore New Markets: Expanding into new markets can drive growth and help maintain relevance. ‍
• Responsive PR Matters: Managing public relations actively and effectively can mitigate potential damages and boost brand image. ‍

What Makes Coca-Cola’s Marketing Strategy So Successful? ‍

Coca-Cola’s enduring success is attributed to its ability to adapt to consumer needs, maintain a strong emotional connection with customers, and continuously innovate its marketing strategies .

Coca-Cola's success story is a playbook for marketers aiming to build a lasting brand that not only survives but thrives through changing times. By understanding and implementing these strategies, other brands can aim to replicate Coca-Cola's enduring appeal.

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Table of Contents

Coca-cola target audience , geographical segmentation , coca-cola marketing channels, coca-cola marketing strategy , coca-cola marketing strategy 2024: a case study.

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Coca-cola has colossal brand recognition as it targets every customer in the market. Its perfect marketing segmentation is a major reason behind its success. 

• Firstly, the company targets young people between 10 and 35. They use celebrities in their advertisements to attract them and arrange campaigns in universities, schools, and colleges. 
• They also target middle-aged and older adults who are diet conscious or diabetic by offering diet coke. 

Income and Family Size

It introduces packaging and sizes priced at various levels to increase affordability and target students, middle class, and low-income families and individuals.  

Coca-Cola sells its products globally and targets different cultures, customs, and climates. For instance, in America, it is liked by older people too. So, the company targets different segments. It also varies the change accordingly, like the Asian version is sweeter than other countries. 

Coca-Cola targets individuals as per their gender. For example, Coca-Cola light is preferred by females, while coke zero and thumbs up are men's favorite due to their strong taste.

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Coca-Cola initially employed an undifferentiated targeting strategy. In recent times, it has started localizing its products for better acceptability. It incorporates two basic marketing channels : Personal and Non-personal.

Personal channels include direct communication with the audience. Non-personal marketing channels include both online and offline media, such as

• Promotion Campaigns 
• PR activities 

Social Media

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A uniquely formulated Coca Cola marketing strategy is behind the company's international reach and widespread popularity. The strategy can be broken down into the following:

Product strategy 

Coca-cola has approximately 500 products. Its soft drinks are offered globally, and its product strategy includes a marketing mix. Its beverages like Coca-Cola, Minute Maid, Diet Coke, Light, Coca-Cola Life, Coca-Cola Zero, Sprite Fanta, and more are sold in various sizes and packaging. They contribute a significant share and generate enormous profits. 

Coca-Cola Products

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Pricing Strategy

Coca-Cola's price remained fixed for approximately 73 years at five cents. The company had to make its pricing strategy flexible with the increased competition with competitors like Pepsi. It doesn't drop its price significantly, nor does it increase the price unreasonably, as this would lead to consumers doubting the product quality and switching to the alternative.  

Place Strategy 

Coca-cola has a vast distribution network. It has six operating regions: North America, Latin America, Africa, Europe, the Pacific, and Eurasia. The company's bottling partners manufacture, package, and ship to the agents. The agents then transport the products by road to the stockist, then to distributors, to retailers, and finally to the customer. Coca-Cola also has an extensive reverse supply chain network to collect leftover glass bottles for reuse. Thus, saving costs and resources.

Coca-Cola’s Global Marketing

Promotion Strategy  

Coca-Cola employs different promotional and marketing strategies to survive the intense competition in the market. It spends up to $4 million annually to promote its brand , utilizing both traditional and international mediums for advertisements.   

Classic Bottle, Font, and Logo

Coca-Cola organized a global contest to design the bottle. The contest winner used the cocoa pod's design, and the company used the same for promoting its shape and logo. Its logo, written in Spencerian script, differentiates it from its competitors. The way Coca-cola uses its logo in its marketing strategy ensures its imprint on consumers' minds. 

Coca-Cola’s Gripping Advertisements

Localized Positioning

The recent 'Share a coke' campaign, launched in 2018 in almost fifty countries, has been quite a success. The images of celebrities of that region and messages according to the local language and culture of the area target the local market. 

Coca-Cola Advertisement Featuring Celebrities

Sponsorships 

The company is a well-recognized brand for its sponsorships, including American Idol, the NASCAR, Olympic Games, and many more. Since the 1928 Olympic Games, Coca-Cola has partnered on each event, helping athletes, officials and fans worldwide. 

Coca-Cola as Official Olympics Partner

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With technological advancement, social media and online communication channels have become the most significant part of the Coca-Cola marketing strategy. It actively uses online digital marketing platforms like Facebook , Twitter, Instagram, YouTube, and Snapchat to post images, videos, and more.  The Coca Cola marketing strategy primarily includes SEO , email marketing , content marketing , and video marketing .   

Coca-Cola’s Instagram Posts 

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Q&A: Author of 'Bottled: How Coca-Cola Became African' on Coke's surprising history

A store in Monrovia, Liberia, advertises Coca-Cola. The photo is from circa 1947. Alberts/Alberts/Three Lions via Getty Images hide caption

A store in Monrovia, Liberia, advertises Coca-Cola. The photo is from circa 1947.

Author-historian Sara Byala had an epiphany about Coca-Cola's role in African life and culture in 2003. She and a group of fellow graduate students had found their way across Mali's Saharan Desert via an arduous journey that involved a broken-down jeep followed by bouts of hiking and hitchhiking.

When the exhausted group reached a Niger River ferry stop the next day, the pause that refreshes took on new meaning. "Boarding, grimy and parched, we are offered — as in a dream — ice-cold Coca-Cola," she writes in her book, Bottled: How Coca-Cola Became African.

At the time, she wondered, "How is this here ... Where was this bottled, how was it transported and, most importantly, how was this cooled?"

Good questions, all — which she pursued and now answers in her new book. After writing it, Byala, associate director of the University of Pennsylvania's Global Documentary Institute and a senior lecturer in critical writing there, has come to conclude "that an ice-cold Coke far up the Niger River was as much about Mali as it was emblematic of an American corporation's reach."

If this sounds a bit like an explanation for how the blog you are reading came to be called "Goats and Soda," you are not far off.

"The blog is aptly named," Byala affirmed in a telephone conversation about how Coca-Cola and Africa became so intertwined — and the pluses and minuses of their shared history.

Egyptian workers push Coca-Cola refrigerators through a Cairo street in 2000. Mohammed Al-Sehti/AFP via Getty Images hide caption

Egyptian workers push Coca-Cola refrigerators through a Cairo street in 2000.

Byala also explained how the American multinational company made its soda seem "local" in even the most out-of-the-way areas in Africa; how the company dealt with divestment and apartheid; and how the company is addressing health and environmental challenges.

Here are excerpts from the interview, which has been edited and condensed for clarity and space:

How big is Coca-Cola's footprint in Africa?

It's huge. The company employs about 70,000 people in Africa. [Each of] these jobs in turn supports between four and ten additional people in secondary jobs, in industries providing bottles, crowns [caps], carbonic gas [for the water], advertising. This multiplier effect makes it responsible for up to 750,000 jobs.

It's also ubiquitous. You see signs advertising Coca-Cola everywhere. Being able to sell Coke came to signify modernity — because to serve it cold you need electricity and refrigeration. People also came to trust Coke as safe for consumption, which cannot always be assumed about water in remote places.

What were Coke's beginnings in Africa?

Kola nuts, native to Africa, are sorted in the Ivory Coast. The nuts were used in the original recipe for Coca-Cola and gave the soda half of its name. The company does not give out its current formula but numerous articles on Coke assert that extract of kola nuts is no longer used. Sia Kambou/AFP via Getty Images hide caption

Kola nuts, native to Africa, are sorted in the Ivory Coast. The nuts were used in the original recipe for Coca-Cola and gave the soda half of its name. The company does not give out its current formula but numerous articles on Coke assert that extract of kola nuts is no longer used.

The story begins with the kola nut. It had been cultivated [in its native Africa] and used as everything from a stimulant to [medical] restorative in all parts of the continent for centuries [usually it was chewed]. By the 1880s, kola samples had reached Europe and America. Atlanta-based patent medicine maker John Pemberton formulated a non-alcoholic brew (a marketing plus for the temperance-minded) that combined carbonated water with kola, sugar, caramel and coca leaves.

According to official Coca-Cola history, the beverage itself didn't appear on the continent until 1928, but I found records of it being sold as early as 1909 at a soda fountain in Cape Town.

And as you note in the book, kola nut extract is no longer likely part of the recipe: "Somewhere along the way, the amount of kola nut that could be found in Coca-Cola became close to, if not, negligible."

How did Coke become so popular in Africa?

By becoming local. It sounds counterintuitive. But what became apparent to me in researching the book was that though it is an American product, throughout Africa it's considered local.

So in addition to Coke's appeal as a sign of modernity, it was also seen as local? In what way?

Coke exports a concentrate to two factories in Africa where it is then mixed with carbonated water and sugar and other ingredients, all provided locally. Any local bottler will be getting shipments of that concentrate and doing everything locally. There are bottling plants in the vast majority if not all of African countries — and usually several within a given country.

From there, the many distributors and distribution centers — including small, independently run depots, most of which are owned and run by women — transport Coca-Cola via large truck or bicycle or boat or small ships or mule, including to the most remote points in the continent.

Is it unusual to have women entrepreneurs in Africa?

Bottles of Coca-Cola are sold at a market in Northern Cameroon. Pierre Guillaud/AFP via Getty Images hide caption

Bottles of Coca-Cola are sold at a market in Northern Cameroon.

Coke worked with NGOs, governments, and other actors to provide access to mentorship, credit and employment to women. Because female entrepreneurship is so entrenched in sub-Saharan Africa, women rapidly took advantage of these new opportunities. The work in north Africa was similar but faced a different set of cultural values.

How else did Coke become both visible and local?

Coke also found numerous ways to make the brand visible everywhere, helping to sponsor parades, beauty pageants, tournaments, sports, music concerts, public events, major and minor, throughout the continent.

A group of Rwandans waits for transportation near a Coca Cola placard. The photo is from 1994. Hector Mata/AFP via Getty Images hide caption

A group of Rwandans waits for transportation near a Coca Cola placard. The photo is from 1994.

You also see fascinating ways in which Coke waste materials get upcycled, recycled, and repurposed. I was in Uganda last summer and saw petrol being sold to drivers in Coke bottles.

Coca-Cola bottles get repurposed all over Africa in all sorts of ways. In this case, they were used to sell small amounts of petrol, presumably because that quantity is all people either needed or could afford.

You can buy numerous arts and crafts items among other objects on sale, all made from Coca-Cola bottles both plastic and glass, cans, labels, and so on.

Like the Coca-Cola picture frame with the photo of your family?

I've been collecting these kinds of items for years! Coca-Cola cans, bottle tops, and bottles are upcycled in all sorts of ways to make everything from toys and purses to trivets and frames. This means that the containers are used as mediums for artisans who produce items that are worth more than the original material. Hence, my picture frame, made out of flattened Coke bottles, and housing a family picture from my cousin`s wedding in 2013 Durban.

How did Coke respond — or not – to apartheid?

Many Coke plants resisted so-called "petty apartheid" rules such as segregating bathrooms and canteens. Still, in the 1970s the company remained reluctant to sign the "Sullivan Principles" that called for disinvestment in apartheid South Africa. That was one reason why, in 1981, American civil rights activists threatened to boycott Coke. In response, Coke promised to hire and promote Black employees in the U.S. and review how to deal with apartheid in South Africa. Coke figured out a way to simultaneously keep selling the product there while also technically divesting themselves from the country, thus depriving the apartheid state of tax revenue.

In addition, Coke funded a $10 million independent charity [based in South Africa] called the Equal Opportunity Fund to support education, housing and business development. And it allied itself with Nelson Mandela's ANC party to help end apartheid.

The EOF was based in South Africa and funded work solely in South Africa. In the book, I write about Coca-Cola's work with the ANC, Nelson Mandela's party. This work never took the form of a formal alliance. Nor was the company ever outwardly committed to working with the ANC or helping end apartheid. Still, the company played an important and never before written about role in doing just that, through funding, disinvestment and creating on-ramps to economic participation for previously disadvantaged South Africans that helped ease the transition to the post-apartheid order.

Are there costs to Coke's popularity in Africa?

First, there are threats to the human body: sugar is not good for you, and liquid sugar is worse for you.

Second: waste from packaging, leaving landfills stuffed with plastic and glass and cans.

Third: water.

Do you mean using supplies of potable water that would/should go to the general public?

Yes and no.

Coca-Cola cannot be produced without access to clean water. The environmental challenges around water are vast and include procuring enough water, making sure available water is clean and being sure to put back into the environment as much water as it uses so as not to use more than its fair share.

How does Coke address these issues?

These are threats to Coke's business as well as to humanity.

Many people in Africa lack sufficient water. In 2010 the company launched the Replenish Africa Initiative (RAIN) a huge umbrella project to address the water crisis throughout the continent.

A shopkeeper win Zanzibar, photographed in 2005. Marco Longari/AFP via Getty Images hide caption

A shopkeeper win Zanzibar, photographed in 2005.

In just over a decade, about six million Africans had improved water access while over one million Africans had access to better sanitation and nearly half a million hectares of land had improved water access. While critics argue that RAIN's success is but a drop in the bucket in terms of human need, it remains the case that it has done more than any other benefit scheme.

And how about sugar, and its relation to obesity and related health problems?

Coca-Cola's approach to sugar is multifold: one, reduce package size; two, expand into non-sugar and low-sugar drinks, including bottled water and juice; and, three, lower the amounts of added sugar in established brands. There are many [other] products on the market that contain high levels of added liquid sugar, like drinkable yogurts and Frappuccino's. Coca-Cola's aim is, in its breadth of products and variety of sizes, to provide options for all consumers.

And what about landfills?

Just as Coca-Cola seeded recycling in America, so too the company is at work to create mechanisms for recycling in Africa, thus reducing landfill. In the book, I detail the work of PETCO, a Coca-Cola driven consortium of PET or plastic producers in South Arica, that has successfully driven that country's recycling rate.

The company also partners with governments and NGOS to provide their technical or logistical expertise. One example is Project Last Mile , whose website asks, "If you can find a Coca-Cola product almost anywhere in Africa, why not life-saving medicines?" The group partners with other organizations (including the Bill and Melinda Gates Foundation, a funder of this blog) to get medical resources to those who lack access to necessary medicines. Coca-Cola helps apply its logistical knowledge base to help with issues of storage, distribution, marketing and delivery.

So on balance, how would you describe the benefit/harm ratio of Coke in Africa?

My book does not offer a clearcut verdict on the benefit/harm ratio of Coke in Africa. Rather, my book is a work of explanation that sets out to show how Coca-Cola became ubiquitous across Africa and to describe what this ever-presence means. In laying out this complex story, I show how the company uses resources, brands the continent and leads the rise of noncommunicable diseases. But, I also show how with the spread of Coca-Cola came the spread of electricity, human capital, employment and water. I leave it to the reader to wrestle with the verdict.

Diane Cole writes for many publications, including The Wall Street Journal and The Washington Post. She is the author of the memoir After Great Pain: A New Life Emerges. Her website is DianeJoyceCole.com .

• Bottled: How Coca-Cola Became African

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16 Coca-Cola: ‘Taste the Controversy’: A Case Study on Marketing Challenges

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The not so lucky situations and criticism of the Coca-Cola brand come from its first-ever product. As the history from many sources says, Dr John Smith-Pemberton, Coca-Cola creator, fought in the Civil War, and had some injuries. He made a special formula in order to help him deal with the constant pain in his body: the Pemberton’s French Wine Coca which also had a great taste at the time, had alcohol in it. It quickly became very popular until a vote by the state legislature Atlanta and Fulton County in favour of the national temperance movement. The national temperance movement prohibited the use of alcohol and heavily criticized medicinal wine such as French Wine Coca. Pemberton was forced to drop the wine ingredient in his French Wine Coca. After some further experimenting, he decided on the use of sugar syrup as a substitution for the wine and that is when Coca-Cola was born. He invented many drugs, but none of them ever made any money. So, after a move to Atlanta, Pemberton decided to try his hand in the beverage market. In his time, the soda fountain was rising in popularity as a social gathering spot. Temperance was keeping patrons out of bars, so making a soda-fountain drink just made sense. And this was when Coca-Cola was born.

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Nature conservation strategy for regional socioeconomic development

• Spatial Planning
• Published: 15 September 2015
• Volume 5 , pages 286–297, ( 2015 )

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The paper examines the main methodological and systematic aspects for developing a subfederal regional environmental protection strategy using the case study of Novosibirsk oblast. A logical scheme is presented for creating a strategy for regional natural conservation activity. A system of nature conservation measures is presented, determined by the necessity of mitigating or warning possible environmental problems. Calculations are performed for predicting air pollution in Novosibirsk oblast in terms of the most widespread pollutants discharged by stationary sources for the period up to 2025 taking into account the nature conservation measures. The results of the study make it possible to more substantively choose the main directions of nature conservation activity in this region, making it possible to avoid possible threats and use available resources the most effectively. All of this serves a prerequisite both for creating ecological priorities and for developing an environmental protection strategy as an element of the strategy for regional socioeconomic development.

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Strategy of Socioeconomic development of Novosibirsk oblast until 2025. http://economnso.ru/files/1654.pdf. Cited November 3, 2013.

Regulation of the Government of Russian Federation no. 1120-r, of July 5, 2010 “On approval of the Strategy of socioeconomic development of Siberia until 2020, in Sobranie zakonodatel’stva Rossiiskoi Federatsii (Collection of Legislative Acts of Russian Federation), 2010, no. 33, art. 4444.

Program of socioeconomic development of Novosibirsk oblast until 2015. http://economy.newsib.ru/files/99713.pdf. Cited October 21, 2013.

Ekonomika Sibiri: strategiya i taktika modernizatsii (Economics of Siberia: Strategy and Tactics of Modernization), Kontorovich, A.E., Kuleshov, V.V., and Suslov, V.I., Eds., Novosibirsk: Ankil, 2009.

Seliverstov, V.E., Regional’noe strategicheskoe planirovanie: ot metodologii k praktike (Regional Strategic Planning: From Methodology to Practice), Kuleshov, V.V., Ed., Novosibirsk: Inst. Ekon. Org. Prom. Proizvod., Sib. Otd., Ross. Akad. Nauk, 2013.

Seliverstov, V.E., Strategicheskie razrabotki i strategicheskoe planirovanie v Sibiri: opyt i problemy (Strategic Development and Planning in Siberia: Experience and Problems), Kuleshov, V.V., Ed., Novosibirsk: Inst. Ekon. Org. Prom. Proizvod., Sib. Otd., Ross. Akad. Nauk, 2010.

Seliverstov, V.E. and Melnikova, L.V., Analysis of strategic planning in regions of the Siberian Federal District, Reg. Res. Russ. , 2013, vol. 3, no. 1, pp. 96–102.

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Burmatova, O.P., Methodological aspects of analysis of regional functions from point of sustainable development, in Mater. Vseros. nauchno-prakt. konf. “Innovatsionnyi potentsial sovremennogo regiona: problemy regional’noi bezopasnosti i vnutriregional’noi integratsii na postsovetskom prostranstve” (Proc. All-Russ. Sci.Pract. Conf. “Innovative Potential of Modern Region: Problems of Regional Safety and Interregional Integration on the Post-Soviet Territory”), Volgograd: Volgograd. Fil., Akad. Narod. Khoz. Gos. Sluzhby, 2011, pp. 7–16.

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Institute of Economics and Industrial Engineering, Siberian Branch, Russian Academy of Science, Novosibirsk, Russia

O. P. Burmatova

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Original Russian Text © O.P. Burmatova, 2014, published in Region: Ekonomika i Sotsiologiya, 2014, No. 3 (83), pp. 219–245.

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Burmatova, O.P. Nature conservation strategy for regional socioeconomic development. Reg. Res. Russ. 5 , 286–297 (2015). https://doi.org/10.1134/S207997051503003X

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Received : 19 May 2015

Published : 15 September 2015

Issue Date : July 2015

DOI : https://doi.org/10.1134/S207997051503003X

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