SUBMITTED TO: Sir Rehan KhanSUBMITTED BY: Asma Masood, Maria Malik, Maria Zareen Raja, Noor E Sehar, Reema PervezSUBMISSION DATE: 23rd January

NESTLE WATERS – OPERATIONS MANAGEMENT REPORT

1. CONDUCT A THOROUGH RESEARCH AND FIND OUT HOW COCA-COLA HAS

BUILT ITS BRAND EQUITY OVER THE YEARS.

Answer: DEFINITION OF 'BRAND EQUITY'

The value premium that a company realizes from a product with a recognizable name as

compared to its generic equivalent. Companies can create brand equity for their products by

making them memorable, easily recognizable and superior in quality and reliability. Mass

marketing campaigns can also help to create brand equity. If consumers are willing to pay more

for a generic product than for a branded one, however, the brand is said to have negative brand

equity. This might happen if a company had a major product recall or caused a widely publicized

environmental disaster.

Coke has held its pole position for ten years, staying ahead of other famous brands such as

Toyota, Disney, McDonalds, Marlboro and Intel. Quite simply, there is no other brand like it.

REMARKS OF CEO COCA COLA:

Coca-Cola CEO Muhter Kent says the company's 5% gain in volume sales and

8% revenue improvement during the last quarter are due to brand loyalty, particularly for its

flagship. Coca-Cola is one of the most recognizable brands around the globe. Having established

a leading brand that fascinates consumers all over the world, Coca-Cola is widely regarded as

one of the most booming organizations having achieved huge branding success. Our brand equity

is growing stronger around the world as evidenced by a measurable increase in consumer

preference for our brands this quarter, as well as more potent global growth for our flagship

brand, Coca-Cola."

Achieving Brand Reinvention

A key element of Coca-Cola's success can be certainly attributed to its branding strategies. Since

1866 that it started its operations until today that is a powerful, globally known corporation, the

company's brand development strategies constantly raise consumer interest and remain highly

competitive. Having achieved impressive brand loyalty through continuous reinvention of its

brand and focus on brand enhancement, Coca-Cola is, without any doubt, the leading non-

alcoholic beverage company in the world.

Focusing on Consumer Sophistication

Its branding strategies focus on the changing market realities and consumer sophistication that

requires different approach and brand redesigning. In the early years, the company focused on

making the brand affordable, available and acceptable in the aim of establishing a brand that

would be instantly recognizable and highly appreciated in consumers' minds. Over the years, and

in an effort to adjust its branding strategies to the new consumer demands, Coca-Cola focused on

building brand identity by offering value for price, differentiation to meet consumer preferences

(preference), and pervasive penetration. Today, by testing at least 20 different brands on a

monthly basis on a sample of 4,000 consumers, Coca-Cola is a corporation with strong brand

identity and brand image.

Evaluating Consumer Response

Besides, the company constantly assesses consumer response to its brands in order to evaluate

consumer perception and find out what consumers believe about its products. Consumers relate

particular brands with particular symbols and promises that need to be met. Similarly, Coca-Cola

is related to a particular level of customer satisfaction that is determined by the collective

memory of its target audience.

Achieving Strategic Consensus

Another important aspect of Coca-Cola's branding strategies is the fact that strong brands make

great sales and increase their revenues. However, Coca-Cola has taken the extra mile by building

a brand that has managed to increase sustainable sales by attracting and retaining the best human

capital and investing in employee relations and customer relation management. This has enabled

the corporation not only to achieve strategic consensus and alignment at all organizational levels,

but also to trigger positive feelings in consumers' minds

Building Brand Loyalty

Finally, strong brand image is related to brand loyalty. The more consumer demands are

satisfied, the more consumers are attached to a brand and retained by default. Also, Coca-Cola's

brand image entails the purchase frequency that is boosted by effective advertising campaigns

and marketing strategies. In doing so, the corporation expands its customer base and enhances

customer loyalty by meeting customer needs and raising customer satisfaction.

In conclusion, Coca-Cola is a successful product, not only because it has built a recognizable

logo and brand name, but mostly because it has managed to position its brand in a way that takes

advantage of all the elements of marketing mix, i.e. product, place price and

promotion/distribution. In doing so, it achieves to develop a brand personality and distinguish

itself from competition, while offering consumers a clear view of its brand values. This leads to

increased brand loyalty and satisfaction.

CUSTOMERS BASED BRAND EQUITY PYRAMID OF COKE:

The Coca-Cola Company uses a customer-based approach to market research, not a product-

based approach. Because of Coca-Cola’s close relationship with its customers, it is able to create

products that are focused on their market segments. Market research enables Coca-Cola to

determine the type of product consumers seek, the best places to promote and distribute the

products, and the price that offers consumers the best value for their money.

CUSTOMER’S ACC

The customer based brand equity of coca cola reflects the performance of coca cola and the

performance of all brand elements, marketing campaigns, and CRM strategies even every

strategy and actions of company’s effect in building brand equity. The pyramid reflects that coca

cola has resonated nearly everywhere as its brand promise of fun, refreshment and freedom. It

has successfully maintained its brand awareness since 1986. Its performance and strong unique

favorable associations have helped the brand to have strong image and customers judgments and

feelings towards it. Therefore it is enjoying the loyalty of large market share and the position at

top in the market. It reinforces its deep customer connection with the brand.

The Coca-Cola Company has come up with many exciting ways to thank its loyal customers for

making Coke what it is today. Celebrations are taking place around the globe.

 

In the summer in the United States, Coke released a new packaging size for Coca-Cola –

1.25 liters (naturally) and invited people to enjoy "125 Years of Summer Fun."

Community initiative grants were awarded in South Africa that align with the priorities

of"Live for a Difference".

"Live Positively" campaign was launched in Vietnam.

Sustainability initiatives were kicked off in Kenya, including a Kenya Red Cross water

partnership.

Elements of Coke’s history was featured at the grand opening of the “World of Coca-

Cola” exhibition in Russia.

Commemorative postcards were distributed in Brazil to share happiness and

communicate optimism from The Coca-Cola Company associates.

Coke sponsored the Harare International Festival of Arts in Zimbabwe where more than

140 global artists and more than 1000 local artists shared and sold their art.