Coca-Cola Brand Equity Model

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Brand Asset Valuator Model : In the BAV Power Grid, CocaCola will be placed among the companies which are leaders with high earnings or high potential. We may look at the position of CocaCola in the market with respect to the following parameters :-

Differentiation :

This measures the strength of the brand's meaning. CocaCola, to maintain the differentiated product that it aims to achieve invests 20% of its advertising budget on its differentiating strategy. It has also positioned itself in the market in the following ways :-

·         Corporate reputation for quality and innovation. ·         Successful communication of perceived strengths of the product. ·         Symbol of fun and enjoy.

In differentiation, we can look at the strategy of CocaCola against its chief rivals Pepsico. While CocaCola has maintained its focus on the non-alcoholic beverage segment, Pepsico has expanded their focus to snacks also. Hence, CocaCola globally still appeals to the same consumer segment while Pepsico now has to balance between the two and also in the process, Pepsico might lose its place in the consumer’s mind as a chiefly beverage oriented brand. This is how CocaCola has differentiated itself from Pepsico by not venturing into snacks. A product of the CocaCola company that helps it differentiate from other players in the non-alcoholic beverage segment is Limca. The lemon flavoured drink has a considerable loyal consumer base which was proved when Pepsico launched the Mirinda Lemon flavour but was phased out almost instantaneously due to below average sales.

In recent times though, the strategy of the company has not been performing very well. There have been drops in market share lately and thus they need to create stronger advertisements that will once again provide a sturdy customer base.  So basically in order to maintain its position as the market leader , Coke should concentrate its...
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