Friday, March 22, 2013

Business Level Strategy




Which business level strategy does Coca-Cola use?

    Coca-Cola uses the differentiation strategy to make themselves unique and separated from other companies. By using the differentiation strategy, Coke creates a product and service that is unique and valued. They also have non-price attributes that customers will pay a premium for. 

   Coke differentiates themselves by using unique marketing and advertising campaigns to entice their customers to stay loyal to their brand by continuing to purchase coca-cola products versus one of the many competitors. They also have different bottle shapes. Research has been conducted that shows people feel better about themselves and skinnier if the bottle is shaped like a curvy, but slim body shape. Another great differentiation strategy Coke has done, is the above Coca-Cola Freestyle machine. This machine allows customers to mix and match their classic Coca-Cola beverages with many different flavors.
   Coke will need to continue to work hard at using the differentiation strategy to keep themselves separated from its competitors. To do this, Coca-Cola will need to keep introducing new beverages that will maintain customers' brand loyalty. Another way to differentiate themselves would be to use alcohol drinking culture to their advantage. For example, many drinks are ordered as a "rum and Coke", "Captain and Coke" or "whiskey and Coke". Coca-Cola could collaborate with Captain Morgan or a whiskey company and sell attached 3 ounce bottles of liquor with a Coke bottle. Finally, Coca-Cola has a great tasting drink that people have loved for decades and will continue to purchase their product if Coca-Cola works hard to maintain their great Coke taste and innovative ways to present it to their customers.

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