93 / 100
coca-cola

Coca-cola is selling sugared water and consists of 90% of water. But how is it possible for Coca-cola to generate billion dollars each year? It is surviving for more than 111 years including 2 world wars and 7 revolutions. So many brands but still 94% of people can recognize coca-cola as the soft drink brand.

Still, after so much competition from companies that sell tasty and healthy drinks than coca-cola, how is it managing to make billion dollars and defeat the other brands?

The answer is that it deploys a genius marketing strategy and its strategy is known as one of the greatest ever known to mankind.

Customers prefer Coca-Cola

In 2005, a scientist called Reed Montague conducted a simple experiment to try and understand the difference between Pepsi and coca-cola. And so he used 3 methods to find out the differences, preferences, and perceptions people have on the brands.

In the first method, he placed two bottles one with Coca-Cola and the other with Pepsi and he removed the labels on them so that the people will not identify the difference from the outer appearance. He had an FMRI scanner that scans the brain to find the feeling of people. And he asked people to taste and find out the difference, but the people who tasted it could not find the difference between coca-cola and Pepsi and even the FMRI scanner didn’t show any difference.

pexels karolina grabowska 4389675

In the second method, he put the labels on the bottles and asked the people to taste them. When they tasted Pepsi, the FMRI didn’t show any difference but when the people tasted Coca-Cola, the scanner showed a significant difference in the reading.

In the third method, he swapped the logos, where he labeled the Pepsi bottle with the Coca-cola label and the coca-cola bottle with the Pepsi label. When people tasted the bottle with the Pepsi label, nothing happened but when they tasted the bottle with the coca-cola label, the scanner showed the same significant difference in the scanner.

So he understood that it is neither the coke nor the bottle that brings the difference but it is the flash of the red logo that brings the difference. The 3-second logo flash alters the perception of people and justifies the billion-dollar budget obtained every single year to establish the brand icon of happiness.

Coco-Cola marketing strategy

The simple thing you need to do to make your product successful is by focusing on the physical value and the perceived value. For example, when you go to a textile store, the room freshener, scent, music, and the lighting makes you spend your time and do your shopping relaxing and you’ll find it comforting to make your purchases and so a perceived value for the product is created while enhancing the perception of your experience. And the high-quality clothes you have will make you love the shop. But what if you find the store to have a boring collection of clothes and of poor quality. Will you return to that store again?

What if you find a superb collection with high-quality clothing and find the shop boring, untidy, and bad-looking? Will you still go and purchase your products?

The point here is among the physical and perceived value, even if one of the values is bad the value of the product will go down. The perception of the product will be degraded to an extent where the experience is ruined.

christian bowen QHr9s8HyjV4 unsplash

The physical value of the coca-cola is sugar, which gives pleasure and the perceived value of the coca-cola is associating it with the emotion of happiness. So that people buy coco-cola when they think of celebrations as a symbol of happiness.

When coca-cola came to India, to promote its product, it found cricket is the celebration in the country irrespective of different religions, caste, gender, and states. So they decided to promote their product relating to cricket. Their commercial consisted of children playing cricket and enjoying themselves in happiness and it only depicts the brand in the last 3 seconds. So here coca-cola didn’t sell its product, instead, it sold the emotion of happiness.

So as an entrepreneur, try to do marketing strategies of selling an emotion and tell them a great story even if you do not tell about specifications.

To obtain more on money and finance, follow our website.

Follow us on Facebook.