Customer relationship management of coca-cola

1.0 Introduction to Coca-Cola Company

The global brand leading in beverage industry, Coca-Cola was born on 8 of May, 1886 in Atlanta. The first Coca-Cola syrup is produced by a local pharacy, !octor "ohn #tith $eberton. %e brought the syrup down the street and sold it for five cents a glass. The new syrup is cobined with carbonated water to produce a drin& that refreshing and delicious. The brand nae 'Coca-Cola( was created by !r. $eberton and his partner. !r. $eberton thought that the two Cs will loo& great in advertising and his partner suggested the nae nae as 'Coca'Coca- cola(, cola(, whic whichh is now the the top top globa globall brand brand.. Coca Coca-C -Col olaa ade ade thei theirr firs firstt advertiseent in )The Atlanta "ournal*. +nfortunately, !r. $eberton did not realie the potential of Coca-Cola. %e sold part of  the business to various investors and before his death in 1888 he sold the entire interest in CocaCola to Asa . Candler. Mr. Candler and then started to adopt personal control of the forula of  Coca-Cola. /n 01 of "anuary 180, the 'Coca-Cola( tradear& was registered and in the sae year, dividend is paid to investors at the second annual eeting of the copany. The business grew continually in 182. The anufacturing plants was started to build is other states such as 3os Angeles, Chicago, !allas, Te4as and others. /n 185, Mr. Candler  announced that Coca-Cola is now drun& in every state state in +nited #tates #tates in the annual report. /n 12, Coca-colas advertiseent was firstly appeared in international againes and its annual sales hit one illion gallon. Coca-Cola also goes by the nae of )the ost refreshing drin& in the world* in 1s. Coca-Cola continues to develop and becoes the world*s top leading brand in soft drin& industry. +ndeniable, Coca-Cola is syboliing a huge success of a business. Thirsty consuers around the globe now en7oy Coca-Cola Copany products with ore than 1. billion  beverages servings sold each day.

1.1 Introduction to Customer Relationship Management

C9M is the core business strategy that integrates internal processes and functions, and e4ternal networ&s, to create and deliver value to targeted custoers at a profit. /t is grounded on high high :ualit :ualityy custo custoerer-rel relate atedd data data and enabled enabled by infor inforati ation on techno technology logy.. ;y enabli enabling ng organi organiat ation ionss to anage anage and coordin coordinate ate custo custoer er intera interacti ctions ons across across ultip ultiple le channel channels, s, departents, lines of business, and geographies, C9M helps organiations a4iie the value of  every custoer interaction and drive superior corporate perforance.

2.0 CRM Programme and Technology Implemented By Coca Cola 1

/n <, Coca Cola have ipleented a technology called #A$=#ystes Application and $roducts>. #A$ was created by /;M to provide custoers with the ability to interact with a coon corporate database for a coprehensive range of applications. radually, the application have been assebled by today any corporations, including /;M and Microsoft, are using #A$ products to run their own business. ?ro #A$, Coca Cola Copany developed a new device to dispense its wide range of soft drin&s. The new dispenser allowing custoers to pour their own drin&s fro a choice of up to 1 flavors. The self-service dispenser will be set up in fast-food restaurants, convenience stores and grocery stores and loaded with concentrated syrups that store owners can replace. @ith the syste, Coca Cola and store owners can forecast deand based on past usage and order new stoc& accordingly. /t will reduce distribution costs because the syrup cartridges are saller and lighter and also relay inforation on usage and service issues bac& to Coca Cola. 2.1 S!T "nalysis Strength

The strengths of the custoer relationship anageent of the Coca-Cola business organiation are positives eleents that help proote the brand of the copany. Maintaining good custoers relationship is soething they do well and is under their control. The strength of  its C9M is basically what gives the the edge in ost areas in business over their copetitors around the world. The following sections will outline the ain strengths of Coco-Cola Custoer  9elationship Manageent 1. Coca-Cola provides lower prices for their products to their custoers Beeping costs lower in producing their products to their consuers than their copetitors, basically help the to provide costs advantages which will benefit their custoers all over the world. Copetitors pricing is very relevant eleent for Coca-Cola*s overall success, as this &eep the in line with their rivals, if not above the. <. Coca-Cola has an e4tensive custoer base syste, which is a a7or strength regarding sales and profit due to their good inter and intra-relationship with their custoers, CocaCola has been successfully connect the people who drin& Coca-Cola as their loyal custoers where by about 8 of its revenue coe fro those loyal custoers. CocaCola has the ability to sell and a&e products around the world which is uni:ue to CocaCola. 0. Coca-Cola also introduce a prootion which is )*y co&e 9eward **, this is to encourages custoers to purchase Coca-Cola products. The prootion is given when custoers collect bottle caps and pac&ages to collect points to redee later on either as lower products price or free products. This particular activities help build strong custoer  relationship between coca cola and its custoers. As ore custoers participate in )*y co&e 9ewards** progra the database grows and helps to personalie the custoer. 2

2. Coca-Cola provides high :uality productsDservices to their custoers $roviding better  :uality goods to their consuers are the ain priority for its business, this also enable in ensuring the custoers return for ore products. They ensure organied and consistent safety and :uality products though strong governance and copliance to applicable regulations and standard policies. Coca-Cola anufactures its products following strict rules and policies. ;esides that, their products are tested in odern laboratories using state of the art ethod with appropriate technologies. They specifically easure &ey  products and pac&age :uality attributes by focusing on ingredients and aterial, as well as saples collected fro trade. And lastly they a&e sure their products eet copany re:uireents and consuer e4pectations in the ar&etplace. ea#ness

@ea&nesses of a copany or organiation such as coca cola are the things that need to be thoroughly iproved or perfor better. These are the negative aspect that needs to be under  control for the benefit of the copany. @ea&nesses are also things that norally place the developent of an organiation behind its copetitors, or basically stop the being able to eet their ob7ectives. This below section will present ain wea&nesses of coca cola, which are 1. Coca cola e4hibits less price sensitivity than their new custoers Ever pricing of   productsDservices to their new and fresh custoers a&es the less uncopetitive with their copetitors, which is a a7or wea&ness of the copany. Coca cola norally a&es their old and regular custoers feel ore cofortable in en7oying less discount and soeties free products. +nregularly custoers only en7oy free or less discount on a luc&y copetition, soeties they get less discount when they purchase ore products. <. Mar&eting and sales costs for aintaining custoer relationship had significantly drop This happen basically because of the significant focus on carbonated drin&s, however this has a&e the C9M less effective in dealing with the e4cessive coplain fro their  custoers. /n result to that, coca cola lost few of its custoers around the world. And as we &now a liited custoer based is a a7or wea&ness for coca cola as it eans they have less people to sell or ar&et their products to. 0. Coca cola has a uch undiversified product portfolio with its C9M +nli&e ost copanies custoer relationship anageent, coca cola is still focusing only on anaging custoers based who only purchase beverage products without any other   products. The overall consuption of soft drin&s is stagnating and coca cola will find it hard to penetrate to other ar&et such as selling food or snac&, when it will have to sustain current level of growth. This a&es very difficult for custoers to stay on only for type of products, and also a&es the C9M less productive in the copany. !pportunity

Epportunities are e4ternal changes, trends or needs that could enhance the business or  organiation strategic position of coca cola, or which could be a benefit to the. The following are the outline opportunities coca cola is currently facing 3

1. Coca cola could en7oy uch ore benefits fro e4panding their online custoer  relationship anageent by introducing ore opportunities for online shopping for  online shoppersDinternet users to get soe chance to increase the C9M syste in the copany. This can also increase the incoe of the copany, which can eventually enable the to penetrate the online ar&eting syste. <. /n order for coca cola to grow and increase its custoer base, they can a&e soe iportant changes such as providing hoes for hoeless people, giving out free products for people who barely afford it or a&ing lower prices. These opportunities will be a big step to build a strong C9M because ore custoers will be attracted around the world. 0. Coca cola could also build a very strong custoer relationship anageent by establishing soe branches in developing nations worldwide, in order to help the less  privileged to also en7oy the taste of the drin&. Although developed nations have a high  presence of coca cola and have also strong C9M, soe undeveloped or developing nations are yet to be introduced. This will also build a better C9M in those nations as well. Threat

Threats are factors which ay restrict daage or put areas of coca cola business at e4pose ris&. They are factors which are precisely outside of the copany*s control. ;eing aware of these threats and being able to prepare for the a&es is better for the copany this section is valuable when considering contingency plans and strategies. Coca cola is currently facing soe ain threats which are 1. Custoer*s relationship anageent ight such as custoers lifestyle anageent could lead to less of deand for coca cola productsDservices. This could happen when the custoers decided to change the beverage food to other soft drin&s such as Malta, natural fruit 7uice, because soe of the custoers coplain about the healthiness of coca cola  products. @hen the switch happens, this can affect the C9M in the copany which can tarnish the reputation of the fir. <. Coca cola custoer relationship anageent could be threatened by the growing power  custoers have to set the price of their productsDservices. Custoers could one point in tie deand for lower product price. @hen their deand is not satisfy, the custoer  relationship could be bro&en, when they stop purchasing coca cola product. 0. The ost iportant raw aterial sourcing for producing coca cola products is water, therefore when there is a water scarcity, ost li&ely the custoer relationship could be affected, because the only iportant way coca cola &eep their custoers in touch is selling products to their. #o when there is not water to produce the products, coca cola will lost ost of their custoers since they only a7or in producing beverages drin&s only.

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$.0 Customer %&perience Concepts

Custoer F4perience is a target custoer*s perception and interpretation of all the stiuli encountered while interacting with a fir. ?or instances trust, transaction, advertising, product :uality, price, e4pectations, copetitors and so on. There are a nuber of core concepts that wor&ed with custoer e4perience anageent, 5

Touch point =point of contact> refers to custoers coe into virtual or actual contact with a copany*s products, services, counications, etc. Coca Cola Copany ain website is one of  the touch points, as custoer can be loading videos, can view any countries coca cola ain  pages, for instances, Malaysia*s coca cola ain page, it shows products, the coca cola types and nutrition inforation, edia strea, history for the coca cola copany history with years* tieline, videos, these videos show happiness, the attractive scenes to attract custoers and even recipe which how to coo& with coca cola. Custoer feedbac& is iportant to Coca Cola Copany, to &now custoers need and e4pectation, and discover ore new surprises to attract new custoer and aintain e4isting custoer brand loyalty. Custoers can tal& to Coca Cola Copany through send an eail, send letter, call and subit an idea. Coca Cola has a website which lin& to any areas which different websites. Moent of truth =MET> occurs during the oents interacts or contact between custoer  and a fir, any organiational output that leads the custoer to for an ipression of the fir. Coca Cola copany has any vending achines around the worlds, and there are soe of the innovative vending achines, for instance, the soda giant*s new touch screen soft drin& dispenser, bust a Move in #outh Borea which dance e4actly the dance steps of the popular band <$M as the screen showed, the ore the oves copied correct, ore Coca cola will be dispensed out, %appiness #tri&e which delivered happiness in the college capus, &eep dispense coca cola and also foods, in Gational +niversity of #ingapore has a hug e achine, once hug will be dispense coca cola, %ey $al, Geed a 3ift vending achine in Argentina, to celebrate the /nternational ?riendship !ay, installed this 1<-ft-tall achine, which could be only reached by helping fro friends, at least < people to get co&es and so on. Coca cola uses a nuber of touch  points to interact with custoer well, fro products, services, places, people and technologies wor& well. All these innovative vending achines for a good ipression of the Coca Cola Copany. Fngageent is a word eans custoer*s eotional and rational response to a custoer  e4perience. Copanies that design those creative, innovative vending achines, this in order to increase higher positive engageent and build up strong custoer e4perience, to a&e Coca Cola has good ipression to the worldwide custoers. Thus, by always offering the sae custoer e4perience, it could not gain custoer attention and good ipression, therefore, Coca Cola Copany always coe out new events, creative vending achine which wor& with odern technology, videos and food recipes which use coca cola as one of the ingredient to coo& the foods.

$.1 'o( Coca Cola !))ers Customer *alue

Coca-Cola Copany also has created the value for their custoer. Actually, custoer value is iportant things to help the Coca-Cola Copany to survive and aintain their long-ter relationship with custoers. They &now about the concept of custoer value can divide by two  Hdesired value and perceived value. Therefore, the custoer has their desired value such as the 6

custoer want health and wellness trends, so the Coca-Cola Copany has focused on pac&aging architecture. @hen the custoer strongly suggest for the Coca- Cola soft drin& have saller   pac&ages and for preiu pac&ages, thus the Coca-Cola Copany don*t give the too uch li:uid and 7ust give the ability to refresh and en7oy but not necessarily to over-custoer*s needs. ;esides that, they have also do the product innovation to obtain the custoer value. #ince, ore and ore people are choosing low-calorie foods and beverage so Coca-Cola Copany focus on low-calorie beverage category, with the introduction of !iet Co&e with 3eon, !iet Co&e with 3ie, !iet Ianilla Co&e and so on. %ence, they have building a one-to-one relationship with custoers. Mar&eter of Coca-Cola Copany is able to listening what custoers want and the ability to counicate or understand alost on a one-to-one basis. Another they have used the perceived value to satisfy the custoer when the custoer  willing pay the sacrifices li&e the oney but the custoer still can received the benefit fro the Coca- Cola Copany. ?or e4aples, Co&e has a ysterious taste so Coca-Cola Copany create uni:ue benefit as provide and share ore recipes to coo& with Co&e through their copany website. This can be created the custoer value when the custoer buy it and coo& it. And this Co&e sees to be always having good taste with sandwich, chips and snac& for young generation. ;ased on the tagline of Coca-Cola Copany is 'Epen %appiness(, so they always thin& about any ways to achieve and satisfy their custoer. Thence, they ran a prootion that any people &now which is called '#hare a Co&e( that was very effective. ?or instance, the custoer can write their nae in virtual can and then share the value to other people. And during the Chinese Gew Jear in <15, Coca-Cola Copany printed luc&y Chinese words onto Malaysian edition Co&e can such as for fortune, for prosperity, for peace and so on. ?urtherore, soe people buy Co&e because it is widely accepted by any countries. /n addition, Coca-Cola Copany aintains the longest continuous relationship with the Elypic Moveent. #o, alost the custoer and athlete will feel to reduce perceived ris& because that oveent is very faous and everyone &now it, eans that Coca-Cola Copany create the value proposition which is proise of value to be delivered by the to solve the custoer care about drin&ing a Co&e. Moreover, every year they donate their profits to charity organiations in Tur&ey li&e 'Coco-Cola %ayata Arti Ia&fi(. ;ased on this situation, the custoer will believe the Coca-Cola Copany are ainly related with environental and 'friendly-copany( aspect. At the end of the <12, Coca-Cola Copany and Monster ;everage Corporation announced plans for a long-ter strategic partnership to develop for both copanies in the global energy drin& category. ?or the product synergies, both copanies siultaneously copleent resources and assets, that the Coca-Cola Copany can create value for custoers coe fro the Monster  ;everage Corporation.

+.0 Managing The Customer ,i)e Cycle. %&plain the Relationship Bet(een Theory "nd Practice In The Company. Customer Reach

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Coca-Cola Copany understand their product have a target audience that can be defined. ?irstly, their priary goal is to create ar&eting capaign that spea& to the directly. Thus, they will ta&e the sales prootion to get the attention of the people they want to reach. ;ecause they &now sales prootion is any behavior-triggering teporary incentive aied at custoer. ?or  e4aple, they will give soe discount for any custoer who able to buy ore than <2 pac& of  Coca-Cola 9egular, then get <5 off. /n addition, they also give the coupon to custoer   purchase one get one free. And they have the free preius such as calendar or candy tray during the Merry Christas. ?urtherore, Cola-Cola Copany use the erchandising in order to any behavior-triggering stiulus or pattern of stiuli that ta&es place at retail. As the Coca-Cola Copany provide a Coca-Cola erchandising sale truc& to sell their product in the departent store. ;esides that, they designed or placed ore their erchandise in retail store to attain custoer e4tra attention. Customer "cuisition

As a ar&eters of Coca-Cola, they able to use operational custoer relationship anageent tools. ?or e4aple, they will apply event-based anageent to generate new custoer. ;ased on this situation, Coca-Cola Copany has launched gesture based ar&eting in #ingapore. That is a co&e vending achine and in front the achine have a logo nae is '%ug Me(. And this vending achine 7ust to receive the currency of hugs instead of oney. Moreover, the consuers have to s:ueee the sides of the soda dispenser in a specific way to a&e a free Co&e coe out. That*s eans Coca-Cola Copany disseinate their ar&eting essage 'Epen %appiness( to reach the reaining people and attract the people willing to ta&e soe sort of  action such as Coca-Cola %ug Machine is to deliver the happiness to all of people in there. Therefore, they hope the '%ug( can goes spread throughout the Asia. Customer Retention

The definition of custoer retention is the aintenance of continuous trading relationships with custoers over the long ter. /t is also the irror iage of custoer defection. =;uttle, <> As we &now that, Coca-Cola Copany is the first place for soft drin& sales in Malaysia. They have any strong strategies to retain custoer to purchase their soft drin&. ?irst of all, they ust innovativeness either for their product and pac&aging. ?or e4aple, they have provide any different types of Cola drin& such as classic, light, diet and others. This will satisfy those custoers to select what they prefer because soe of the will li&e to get healthy and choose the sugar free drin&. Moreover, the different types of pac&aging also will retaining the custoer and sales. The pac&aging included <5l, 5l and 15l. The copany help their custoer  easily to choose what they want. ?or e4aple, custoer will purchase the 15l if they want to a&e a party in house and share with guests. En the other hand, custoer ore prefer to  purchase <5l for personal drin&. ?urtherore, prootion also is the one of the strategies to a&e custoer retention. #ales prootion can build repeat purchase. ?or e4aple, the liited edition glasses fro Coca-Cola Copany was ade prootion in Mac!onald*s* with purchase one eal. Moreover, free a co&e can with purchase of #C cobo 0 in olden #creen Cinea. A successful to custoer retention, it will build the brand loyalty for the custoer. 8

Customer Commitment

Custoer coitent ean that how a copany to serve their custoer for a&e a trust with their custoer and aintain a good long-ter relationship with custoer. The custoer  trust will help the copany to get the higher sales and hit the goals of copany. Moreover, it ay help the copany to operate for long period. There has three fors of coitent which is instruental, relational and values-based. ?or e4aple, as the world*s largest beverage copany, Coca-Cola Copany proised to bring safe, great-tasting, :uality beverages to custoers at a rate of 1.8 billion servings per day. Their beverages offer hydration, refreshent, and oents of affordable happiness for people worldwide. They are coitted to a&ing sure all of the thousands of beverages they produce eet the highest standards for safety and :uality. As a custoer, we wouldn*t see any soft drin& that selling in the ar&et is e4pired ade fro CocaCola Copany because they proised to e4change fresh beverages with the retailer if e4pired and hasn*t sell out. ?urtherore, the price of the drin&s aintain at low cost even though the econoy deficit in Malaysia. They &eep the sae :uality of drin&s and never change the taste. This actions are a&e custoer trust, then build the custoer loyalty to their product.

.0 Recommendation and Conclusion

The largest challenge of soft drin& industry is the increase of healthy concerns for  carbonated drin&s. /n <, ore than one-third of eleentary schools, half of iddle and 7unior  9

high schools, and close to three-fourths of senior high schools had contracts giving soft drin& copanies the rights to sell their product at school. /n late <1, #urgeon eneral*s report on the obesity epideic, the debate about 7un& food ar&eting has heated up on a nuber of fronts. Coca Cola could invest ore in diet-oriented progras, such as associate with schools and design healthy iproved curriculus or invest ore in developing and prooting diet-oriented soft drin&s, which convert the obesity epideic iages of Coca Cola and regain the younger  ar&et. ?le4ible ar&et strategies and aaing innovation capacity a&e Coca-Cola &eep leader   position in soft drin& field. %owever, the labels of '"un& ?ood( and 'cause obesity epideic( are the original sins of soft drin&s. To get rid of this iage, Co&e not only window dressing its brand iage but also a&e profits fro other non-soft drin& fields. Throughout the overall research on the Coca Cola Copany, we have found the &eys which lead to the success to this world-leading copany. Coca Cola Copany aintained close relationship with their custoers. Coca Cola understand the iportant of custoer value, they listen to custoers* suggestions and try to iprove by that. The proposition for Coca-Cola is  providing refreshent, value, 7oy and fun to custoers, then successfully nurture and protect Coca-Cola.

Re)erences

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1. ;uttle, ?. =<>. Customer Relationship Management  =second edition ed., Iol. >. Flsevier 3td. <. Melbourneer . =<10, 1< <2>. 9etrieved fro httpDDelbourneer.coD<10D1. The coitent-trust theory of relationship ar&eting. Journal of  Marketing , pp. 1-08. 2. #GewsMan. =<1<, 11 1>. Singapore Promotions. 9etrieved fro #Gews httpDDsingproos.coDdining-restaurants-foodDcoca-cola-free-christas-caravan-pac&with-purchase-1-nov-<6-dec-<1<-265D 5. #GewsMan. =<12, 5 12>. Singapore Promotions. 9etrieved fro #Gews httpDDsingproos.coDdining-restaurants-foodDcoca-cola-<5-off-<2-pac&-proo-12-ay<12-65D 6. !ispensing %appiness 1< /nnovative Coca-Cola Iending Machines. =n.d.>. 9etrieved March 8, <15, fro httpDDwww.coca-colacopany.coDinnovationDdispensing-happiness-1. 9etrieved March 8, <15, fro httpDDwww.olypic.orgDsponsorsDcoca-cola 8. Coca-Cola Copany ?ocuses on Ialue Creation, 1-to-1 Custoer 9elationships K 3oyalty06.org. =n.d.>. 9etrieved March 8, <15, fro httpDDloyalty06.orgDresourcesDarticleDcoca-cola-focuses-value-creation . 9ecipes. =n.d.>. 9etrieved March 8, <15, fro httpDDwww.co&e.co.yDenDrecipesD 1. Coca Cola Copany. =n.d.>. 9etrieved March 8, <15, fro httpDDwww.u&essays.co.u&DessaysDar&etingDcoca-cola-copany.phpLi40Th&E@7 11. Coca-Cola ;everages  $roducts N @orld of Coca-Cola. =n.d.>. 9etrieved March 8, <15, fro httpDDwww.worldofcoca-cola.coDabout-usDcoca-cola-beverages-productsD

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1<. Coca-Cola Chinese Gew Jear Custoied Coca-Cola Cans LsharehappinessO =<15, "anuary <5>. 9etrieved March 8, <15, fro httpDDwww.alaysianflavours.coD<15D1Dcocacola-chinese-new-year-custoied-coca-cola-cans-sharehappiness.htl 10. Co&e and Monster Announce 3ong-Ter $artnership. =n.d.>. 9etrieved March 8, <15, fro httpDDwww.coca-colacopany.coDcoca-cola-unbottledDco&e-and-onster-announcelong-ter-partnership 12. Custoer e4perience anageent technologies shape business strategies. =n.d.>. 9etrieved March 8, <15, fro httpDDsearchcr.techtarget.coDfeatureDCustoer-e4perienceanageent-technologies-shape-business-strategies 15. $roducts. =n.d.>. 9etrieved March 8, <15, fro httpDDwww.co&e.co.yDenDproductsD 16. G9? %ow Coca-Cola creates happiness for consuers and retailers. =<10, "anuary 12>. 9etrieved March 8, <15, fro httpDDwww.retailcustoere4perience.coDarticlesDnrfhow-coca-cola-creates-happiness-for-consuers-and-retailersD 1. #@ET of Coca Cola - #@ET analysis of Coca cola. =<15, March 6>. 9etrieved fro httpDDwww.ar&eting1.coDswot-coca-colaD 18. $roduct #afety and Puality - The Coca-Cola #ustainability $ro7ect. =<15, Goveber > 9etrieved fro httpDDwww.coca-colacopany.coDsustainabilityreportDeDproductsafety- and-:uality.htl

"ssignment Mar#ing /orm

Tutorial roup Go. Tea Go. Tutor Gae 12

Tea 3eader Gae  /! Tea Mebers Gae, /!  Course

1. 2. $. +. .

"ssessment areas or chapters

Mar#s "llocation

1. /ntroduction to the copany and C9M  prograe.

1

<. Fvaluate the C9M prograe and technology ipleented by the copany. Fvaluate C9M can apply #@ET orD and ?/IF ?E9CF analysis.

20

0. F4plain custoer e4perience and custoer value of case copany. !iscuss the relationship between theory and practice in the copany.

20

2. Managing the custoer life cycle. F4plain the relationship between theory and practice in the copany.

20

5. 9ecoendation and Conclusion

1

6. 9eport forat =5 ar&s> and proper referencing using A$A =5 ar&s>.

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Total

100 mar#s

Total Mar#s Con5ert to +0 mar#s

+0 mar#s

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