Coca-Cola Company strategically positioned to touch maximum consumers

Coca-Cola Company is one of the largest actors in the industry of the drinks and especially in the sport drinks. The group owns leadership positions across key categories. As seen in the article where we present the perceptual map of the sports drinks, Coca-Cola succeed to realise a very good marketing strategy. In fact, since years, the group is following a diversification strategy by increasing its portfolio through the creation and the acquisition of drink brands. Then, those brands are repositioned or more deeply placed in their position by the group using its knowledge and investing power.

In our analysed market we can mention Powerade, the performance drinks which has been launched by Coca Cola in 1988. The drinks historically compete with Gatorade, the Pepsi & Co brand. In 2007, Coca-Cola announced the acquisition of Glacéau, a maker of flavored vitamin-enhanced drinks, VitaminWater, and Burn energy drinks, for $4.1 billion.

In 2014, the group acquired some shares in Monster Beverage for $2.15 billion with an option to increase them, as part of a long-term strategic partnership that includes distribution and marketing alliance, and product line swap. In fact, Burn energy and Monster have to be well manage in order to avoid competing themselves, thus it had to be done by repositioning the lines of product and the promotion strategy to cover a higher range of customer and do not overshadow one another.

It is also interesting, by going further, to mention that SmartWater a recently introduced drink from Coca-Cola/Glacéau that has the duty to take place has an enhanced-water. This goes in the line of the value-added drinks to improve body conditions except the fact that it is not a flavoured beverage. This new product shows the growing trend and interest towards this kind of drinks a the increase fight to catch market opportunities and customers thirsty to get healthier and more efficient in their daily life and while doing sport.

Yoann Quardel

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