Topic V : Promotional/Marketing Strategy of Coca-Cola

The Promotional Strategy of “Coca-Cola” in History

In 8 may 1886, it was the first time that “Fresh Drink”(Coca-Cola) was represented by Dr. John Styth Pemberton, he was a pharmacy expert that found the caramel syrup ingredient or we can call “Coca-Cola” now. Frank M. Robinson was John’s a best friend and an accountant that recommended “Coca-Cola” name, because two C alphabets will see uppermost in advertisement. And then, they has created “Coca-Cola” name with italic and stream alphabet, then the most famous logo was borned.

In the first effort of promotional/marketing strategy, Dr. Pemberton has used push strategy with had the price just 5 cents per-glass and has distributed the thousands free coupons that 1 coupon could be exchanged with 1 glass of coke, and he has realized that he should used pull strategy with has defrayed 46$ to his product advertising. But, in 1892 the copyrights of Coca-Cola was bought by Mr. Asa G Chandler, then he has built Coca-Cola Corporation.

Chandler is creative and smart person to push strategy, he has created the consumer attention with had made many kind of cinderamata goods (e.g. hand watch, fan, and date paper) that have Coca-Cola logo, and then he has distributed in the potential locations of sale with continual. Besides he has designed the full color of Coca-Cola Ads to bus and lamp hang decorations.

The Promotional/Marketing Strategy of “Coca-Cola” in Indonesia

In Indonesia Coca-Cola have several push and pull strategies to support the Coca-Cola sale and marketing. The objective of this strategies is to increase the consumer loyalty and satisfaction, there are:
Push strategy:

1. CSS (Customer Service System)
   Coca-Cola CSS (Customer Service System), it was designed to increase consumer satisfaction and loyalty continually for Coca-Cola products with provide optimal service to all consumers based on their needs.
   
   The objective is to create ideal outlet, and the way to get it, there are: make the planning with mature and evaluate again all aspects and sale opportunities that available to every customers, then make offering with corrective steps and apply repair programs that suitable with corporation standard.
   
   The way to make CSS effectively is special team of National Office do planning and give services to consumers in sale and marketing area, start from the planning of distribution route shall customer service system that more comprehensively.
   
2. Area Marketing Contractor and Street Vending
   The limited of resource and capability to develop selected area, and to create work opportunity widely in informal sector, it is push Coca-cola seriously and continually to develop indirect distribution network based on small-middle industry in Indonesia. This distribution system divides into two big groups, there are Area Marketing Contractor and Street Vending.
   
   AMC is a cooperation form with micro entrepreneurs to serve C and D economy class or area that very difficult to reached by Coca-Cola direct distribution system. These AMC are spread over in solid urban regions, hinterland regions or outside of urban, or in kiosk and booth forms.
   
   SV is a distribution cooperation form that designed to serves areas that have very high level consumer traffic, through usage operational medium that has high capability of mobility. The types of sale medium that include in SV are: Mobile Kiosk, Push Cart and the rombong.
   
   80% of Coca-Cola sales in Indonesia was done by retailer and wholesalers.
   
   



3. Cold Drink Equipment
   Based on the research that 90% of Coca-Cola consumers had more interesting bought the Coca-Cola Products in cold condition. This is show that the role of Cold Drink Equipment is very important to increase the sales growth and to push the benefit level of Coca-Cola Customers.
   
   Coca-Cola Indonesia have big commitment to provide various of cold drink equipment to support the sales of Coca-Cola Customers. Start from ice chest for kiosk, electric coolers for retailer, shop booth, supermarket, and restaurant.
   
4. HoReCa (Hotel, Restaurant, and Café)
   HoReCa is a cooperation form with Hotel, Restaurant, and Café. Coca-Cola see these areas as gold opportunity to develop marketing network in exclusive areas.
   
   

Pull strategy:
Coca-Cola have various promotional programs, that not only to increase sales and marketing, but also to increase the consumer loyalty for Coca-Cola products. They are advertise in TV, News Papers, Magazine, and various events.

The last Promotional program of Coca-Cola in 2008 is “Ayo Mudik Segar ala Coca-Cola” that cooperate with Yamaha Motor and Pertamina Enduro, they are provide 61 “mudik” posts, and they provide free Frestea, free service, free massages, and so on. To support this event and make it successful, they are advertise this event 16 media of news papers, 2350 banners, 1000 posters, and so on.

In my opinion the strategy of Coca-Cola is already very marvelous, this strategy is very effective to survive and to increase the market, they have separate individuality of marketing strategy that very unique and creative which is rarely owned by other corporation marketing strategy, various promotional programs that supported by Coca-Cola is adapt with the right time, and I think Coca-Cola try to show with newest marketing strategy that can to excite society.

In my imagination for push strategy, Coca-Cola can create the products with gallon packaging like gallon packaging on mineral water, so the tidiness of Coca-Cola will not persuade the product price, because one tidiness can use forever and can refill if empty, then Coca-Cola can more decrease the cost of production, then the potential customer will more interest with this tactic, the price is lower, the packaging is attractively. And in my imagination for pull strategy, Coca-Cola can more empower the most favorite sport programs (e.g. IBL (Indonesia Basketball League), ISL (Indonesia Super League), and so on), because if Coca-Cola can more support this programs, the positive and unique image of Coca-Cola will more create in marrow of this society (Potential Consumer).

By Irfan Diansyah
For further information about Coca-Cola Indonesia and their marketing, please visit http://www.coca-colabottling.co.id/