4Ps for coca cola                      

1.Product: Priced relative to value                    

2.Price: Preferred product- within an arm's reach of desire 

3.Promotion: Persuasive image

4.Place: Paint it in red-advertisement everywhere                      

 

 

 

Sell products with high quality

Product can’t speak or fly, but must have some functions that most people are going to use. It will become a hobby when people are used to drink coca cola and enjoy the flavour. Coca cola can cause people’s nose itch and quench their thirst. It also gets some caffeine which can treat headaches, nausea and stomachaches.

Believe products

Believing product means to build a lofty image of the product, then make the relative occupation sacred. It also means to let staffs think their product is the world’s first-rate, and they are working for the best company in the world. Salesman should have the same ability as a missionary but not just a worker who is earning money. In 1920s, Mr Woodruff fired all the salesmen surprisingly and reemploy them in other departments. But he said they were not salesmen anymore because they only propagandize the advantages of coca cola. They should know they are staffs whose mission is to make sure mix soda to perfectly iced coke.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2.Give available/common price (everyone could buy it)(2)

From 1886 to 1950s, every bottle of coca cola only sold 5 cents. It’s still not expensive at the present. The third-world countries could also purchase it. Even on hard times, coca cola had a good market as well. During the great depression or recently recession, coca cola sellers kept getting benefits.

Low producing cost(2)

The cost of coca cola is even lower than 1 cent. Coca cola is not capital-intensive product, and not difficult to produce, nor wasting labour forces. Although its producing process is kept in top secrecy.

Try to get lowest cost(2)

There is none concentrating on this question before Goizueta became the CEO. In the competition with pepsi, people was concentrating on the marketing shares but not profits. Goizueta realised that they were losing. Because they invested on a metal bucket which only has a volume of 5 gallons.

Give agents benefits during circulation(4)

As a low cost, coca cola could have a much higher price at retails. Coca cola could even profiteer. Every person who makes contact with coca cola could get good benefit, such as producers, shareholders, wholesalers, even people who provide pallets or vending machines. This effect makes people feel grateful and happy to make dedication to coca cola.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Good at promotion

How, when and where to do the promotion is the key to the success. In 1911, Arthur Cadila spent million dollars to stimulate consumers, which is to make coca cola as the world’s best promoted brand. He paid for artists to draw the logos on the walls in America, which covered more than 5 million square foot. In 1913, the company handed out a hundred million of small gift with coca cola’s logo so that people can see that on thermometers, calendars, notebooks, cards and hand fans, etc. A salesman said that a customer had nightmares that a devil of coca cola was chasing him. In other world, company of coca cola spends 4 hundred million dollars on promotions all of the world, it is not strange to cause that case.

Give a good image of products

An advertising agency of coca cola told employees who are imaginative that “They are not selling or drinking a product which is imagined. At the start, the advertisements of coca cola was pointed on the medical effect of it by saying that coca cola could rouse brain workers’ spirit, reduce drunk people’s headache and give people pleasant sensation. But the nomenclator of coca cola realised that could attract more customers by propagandizing coca cola as a refreshment beverage rather than a medicine, and avoid unnecessary law disputes or trouble.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Use star effect

Coca cola used to engage stars for advertising. But it also has some bad effects that people might remember the stars only. Coca cola hold the stardom of promotions rather than pepsi worried about the high cost to pay for the stars. Died stars could have better effect than live stars sometimes.

Get people’s sight (especially young people)

Since 1950s, an advertisement of coca cola was established which could be suit in different cultures. Coca cola has common glamour. You might be more confident, popular even sexy or younger after drinking coca cola. To strengthen the effect of publicity, the company of coca cola sponsors sports events and concerts all of the world.

Bring sense of mystery

Creating mystery is a bit against morality but good for sales. A manager of coca cola admitted that a recipe is not useful rather than the effect of the trademark in a century. But the seven flavours in the recipe was a key point to attract customers.

Ads should have clear purpose(3)

The company of coca cola runs 4 million on changing raw material in 1985, but it helped the famous-brand company. When the company established classic coke under the pressure from consumers, the coming-back coke got much more sales than pepsi. Before establishing new coca cola, the classic coke was losing market in the past 20 years. Lots of people thought that Goizueta planned it on purpose. Sometimes bad advertisements could help to build good reputation and increase sales.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

When in Rome, do as Roman do(4)

Coca cola can’t dress as ugly American if they want to be propagandized in all of the world. In 1920s, when Mr Woodruff was controlling coca cola’s development in all of the world, he tried to make coca cola popular for people in every country. The company of coca cola signed contract with local businesses, then let them produce their own-style coca cola. The only thing traded between the company of coca cola and local factories is the concentrated liquor of coca cola. The company of coca cola can say that they made a lot achievements in the local places. The company of coca cola has got lots of staffs who are smart and clear about the local cultures in the past years. And they said it as company has got lots of local lawyers for every local factories.

Be in law (legal)

The image of the company of coca cola should be innocent. An illegal behaviour could damage the reputation of the vast multinational corporation.

No protectable or negative ads

For pepsi, advertisement with competitions is effective. But it might help the competitor. It is stupid for the company of coca cola to choose this way at any time, including explaining about the caffeine.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Utilize famous people’ effect

Legal doesn’t mean sit on the chair like an angel. Mr Woodruff is a national effective person. He even has relationship between government agents. But he can’t use statesmen’s effect. If they could propagandize products meanwhile standing for national interests, that will be enough. For example, the relationship between coca cola and Mr Carter enabled the promotion for coca cola.

Believe Theories

Mr Woodruff’s guiding ideology is quite simple. As his workmate said, he never finish reading one book during his lifetime. And he is nearly an illiteracy. The point is that he always standing on the basic theory.

Be flexible

When coca cola needed to change, the weak came out that they doesn’t want to change the current situation. Arthur Cadila didn’t decide to remove the cocaine in coca cola until 1903. Mr Woodruff strongly opposed that use big bottles for coca cola, establish new flavours, use rock music for advertisements or raise retail price, which things were necessary at that time. In 1980s, Roberto Goizueta decided to stimulate the conservative company. When he decided to produce diet coke, the truth showed he was right. In 1985, he met trouble when he was researching on new recipes. Then he chose to use the original recipe. Therefore he avoided a mistake. Mr Woodruff always says that “The world is belong to active people.” But Roberto Goizueta says that “we are living nervously.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Extensive operating if necessary

Roberto Goizueta extended the business scope at once he became CEO of coca cola in 1981. He acquired the company of Columbia which has a good effect at that time. However, he sold it to SONY within the next 10 years but got quite a lot of benefits. Then he paid attention on coca cola. Stocks of the company of coca cola increased 735% in 1980s and divided into half-half in 1990s.

Give press on employees

This sounds not so good but every CEO of coca cola agree the atmosphere that they are respecting each other. Warstenie said that “anxiety and tension could perfectly stimulate people’s potential. Mr Woodruff’s “boss” also stands for respect. Goizueta would be nervous to every one cause he wanted to be perfect.

Promote employees

Every best manager in the company of coca cola was promoted by steps, including the members of the commission. They were under the “coca cola’s” training and tired every that day.

Use cash well

Mr Woodruff got surprised when he took over the company. He put in a mount of own money. There was no more financial leverage after that, even during Reagan’s time. When Goizueta took over the company, there was a reasonable debt. Goizueta thought a reasonable debt is significative. An useful way is that buy own share to increase the price of the share.

Joint ventures

Another way to use cash well is to avoid the old mistake of the bottling factory. After Arthur Cadila gave up the right of bottling and set the main mission to produce syrup, the bottling businesses developed with the low cost. Even though the company of coca cola had some factories, but that were mainly for training managers but not for profit. The old thinking believed that individual bottling is better. But in 1981, Goizueta broke it in Philippines. Because the Soriano gave pepsi 70% of coke market. With 30% of marketing right, the company of coca cola started to negotiate with bottling factories. Then the marketing right changed back to coca cola. Goizueta got to joint ventures all of the world.

 

 

 

Try to be everywhere

Coca cola should be everywhere that people can get it straight away. For example, in ballrooms, barbershops, offices even on trains. In 1923, a salesman called Harrison Jones said that they would make people unable to avoid coca cola.

Be patient but decisive

The decision makers of coca cola are clear that they need to achieve selling coca cola in the whole world one day. Even though it is 195 counries now, and the achievement is only a matter of time. Wars, famines and political event might briefly affect it. The decision makers will stand on achieving the goal and be ready to catch the chance.