Loyalty Programs Of Coke Refocus On Customer Satisfaction

Coca-Cola, the corporation nourishing the global community with the world's major selling soft drink concentrates since 1886, returned to India in 1993 after having a 16 year hiatus, giving new thumbs up to the Indian soft drink market. Within the same year, the Company took over ownership of the nation's top soft-drink brand and bottling network. It's no wonder our brands have assumed an iconic status in the minds of the world's consumers.

Coca-Cola India is among the country's top international investors, having invested more than US$ 1 billion in India in the first decade, and additional pledged another US$100 million in 2003 for its operations.

Sunil Mithas (2005): This evaluates the result on customer knowledge and client satisfaction of customer relationship management (CRM). The usage of CRM application is positively associated with improved customer knowledge and improved client satisfaction showed by an analysis of archival data for a cross-section of U. S. this post also shows that gains in customer knowledge are enhanced when firms share their customer-related information using their supply chain partners.

Andres Kusik (2006): the studies influence of various factors on customer loyalty. The list of most important factors affecting loyalty would depend on the level of loyalty of customers this is insisted by the main theory of this study. In Estonia, for testing the theory a LOGIT method was used on the sample of survey data about 1000 customers of the Coca Cola Company. The results draw out that there are 4 factors affecting customer loyalty that are playing different role on the various levels of customer loyalty. These factors are:

A Smidths (2006): in this study "whether loyalty programs really raise behavioral loyalty "is the pressing issue in marketing. While using loyalty program, a higher share-of-wallet i. e. income is with loyalty program members as compared to non-members, but this will not necessarily imply loyalty programs are effective. Loyal customers may select themselves to become members in order to benefit from the program. We estimate models for both membership decision (using instrumental variables) and for the effect of membership on share-of-wallet, since program membership derives internally. This model become way of measuring behavioral loyalty. We find a small positive aftereffect of loyalty program on share-of -wallet. This effect is 7 times smaller than it's advocated by nave model which ignores the endogeneity i. e. originating internally of program membership. The predictive validity of the proposed or former model is much better then nave model. Our results show that creating loyalty program membership is vital step to improve the share-of-wallet and we offer the guidelines about how precisely to achieve this.

Vincet Oneymah (2006): The strategic procedure for shaping the interactions between a corporation and its own customers with the purpose of maximizing current and lifetime value of customers for the company as well as maximizing satisfaction for customers is customer relationship management (CRM). CRM is a complex set of activities that together form the basis for a sustainable and hard-to-imitate competitive advantage: the client - focused organization. Strategic and implementation issues are addressed by this conference from a cross-functional perspective.

Suman Lodh (2007): its analyze that the relationships among the list of functional units along a value chain varies. These relationships are usually well defined in the organizational chart. The performance of 1 functional group can be defined for other group over the same value chain as 'outputs' of the former. Internal customer is the functional group obtaining the output. Therefore, satisfaction of these customers is the center point of the business. The key factor that influences satisfaction level are highlighted in this paper by analyzing the data collected in a organization and further suggests the potential area to be looked at to keep up the high level of satisfaction.

Jacob Kristiansen (2007): it's supply the relationship between customer satisfaction, customer loyalty and the future business potential of existing customers.

Bruce Mac Williams (2007): in this analyze that Cash back guarantees (MBGs) are offered by major retailers in the USA under which they return money to dissatisfied customers. Good deal guarantees (LPGs) is also made available from these retailers under which they promise to refund price dissimilarities if buyers i. e. customers find a lesser price after purchase. Some researchers have argued that LPGs should be legally challenged because they limit price competition and contribute to higher prices. This study suggests and demonstrates adding an LPG to MBG can improve economical efficiency as both losses of retailer and inconvenience or trouble costs of customer from excessive returns are reduced. This reduction serves as a argument against those who believe that LPG should be prohibited.

Racob Jacobs (2009): As the starting place of analysis we make use of the efficient markets theories. We outline a strategy for accessing financial value-relevance of marketing measures. By investing the association between information within the American client satisfaction index (ACSI) client satisfaction measures and stock market performance we illustrate the approach. Our findings differs from previous research, previous approach follow methodological approach which do not include nesting other models, incorporates lots of efficient market considerations are not also included. The ACSI metric (measures) provides statistically significant incremental value-relevance to accounting measures limited to organizations in the computer sector. For other sectors i. e. the majority of organizations in the sample, unpredictable changes in satisfaction do not provide statistically significant incremental information to accounting measures in explaining stock returns.



Coke has begun to go away from national programs to local activities that are necessary to specific customer interests. the business collaborates with individual retailers on marketing projects that are designed to have intangible effects than, for example, a discount offer in the weekly newspaper.

Coke's current joint efforts with retailers are centered on relatives and buddies. The promotions during joint sitting inside your home like football match because this can be an activity in which relatives and buddies gather.


Coca-cola co. is owning a mobile campaign via the CHACHA mobile answer service to generate curiosity about its loyalty program and coke zero soda.

The carbonated drinks giant is one of CHACHA's first advertisers. CHACHA has been charged with enabling a conversational relationship between coca cola and the an incredible number of users of its answer service.

Users can call 1-800-2CHACHA or type text questions to CHACHA (242242) on mobile phones and receive answers within minutes. Users can ask question related to any field any issue, they may also ask the several schemes and loyalty programs running in the business. The program really attracts the customers.


Coca cola company changes their product prices based on the season. Summer is supposed to be always a good season for beverage industry, so in winter they reduce their prices to keep their sales and profit.


Cards receive by the business to the clients at opening of new product or with simply purchase made by the customer. When the client totally scratches the card then he/she gets the rewards. The rewards can be reduction in price on purchase, getting some points, becoming smaller and smaller product etc


Coca cola launched coke zone as its reward scheme. The Carlson marketing - the lead agency on 'coke zone '- designed the new site. Its main aim is to make brand loyalty across its portfolio of drinks and it spent some time working with partners in the music, fashion, entertainment to renovate the site. In order that more and user visit the site and also find other features also like music.


The company also promotes sporting activities such as financial assistance to hold these activities and for that reason this has created a connection with the consumers, . These promotions have created a good feeling toward the coca cola company and this has contributed to the high consumer loyalty the business enjoys. For instance,

Coca cola launched a competition for the 72 clubs of the football league - it was called "win a new player". This allowed fans to put 1 vote per day for his or her beloved club with 1 entry being chosen at random earnibg$250, 000 for the club.

But in 2007 this competition changed to "buy a new player ". This competition allowed fans to buy a bottle of coca cola zero or coca cola and submit the code on the wrapper on the coca cola website (www. coca-colafootball. co. uk). this code could earn anything from 50p to $100, 000 for a club with their choice.

This competition was favored in the old "win a new player" competition as it allowed all clubs to win some cash.


Consumer drinking coke will be rewarded with an incredible number of 'happy prizes' on the website within its ongoing "open happiness "ad push. The prizes that exist at the site is of random nature. Any consumer can get any prize


The, technology platform enable all the of the companies brand to provide interactive content direct to consumers through websites, email, mobile channels. As a result, consumers were developing separate relationships with each brand. To get customer few new features or benefits could be provided to them. the buyer might get a diet coke health tips newsletter and a contact coupon offer for his or her next purchase.


Coca cola has gone through a number of different advertising slogans in its long history, including "coke could it be ", " things go better with coke ", "it's real thing " etc.

The song "I'd like to choose the world a coke "with popular singing group new seekers had created a great impact on the viewers or consumers.

As well as the creation of any "real " theme song, there may also be the launch of coke FM, radio spots having a variety of new artists.


On some special occasion like holi, the business get one of these new campaign with brand ambassador Genelia D Souza. The business applied this campaign on the brand "fanta". as a part campaign, the business will roll out special holi themed gift idea packs and special PET bottles with fanta-holi hai! As signature. The company new theme on the occasion does really affect the customer as of this time



Coupons certificate that provides buyers a saving when they buy a specified product. The company gives coupons in various schemes during some occasion. The company provides schemes like some discount, or free product etc.


The company when introduce new product or do any modification in the prevailing product then offers a sample from it to their customer. By this company evaluates whether prefer the product or change in product or not. The business sometimes supplies the sample to the retailers or at the shops or even provide door to door.


Offer to refund area of the price of something to consumers who send a "proof purchase" to the manufacturer.


Good offered either free or at low priced as an incentive to buy a product.



Display and demonstration that takes place at the point of purchase or sale.

Promotional events that give consumers the change to win something, Such as cash, trips or goods etc


The company has shaken up the Indian carbonated drinks market greatly, giving the consumers the pleasure of world-class drinks to fill up their hydration, refreshment and nutrition needs.

The company because of their more growth from year to year launches and introduces many loyalty programs on the market. These loyalty programs namely are: mycokerewards, card program, coca cola zero, coke zone, sporting activities, pepsistuff. com, scratch card etc. all these programs are introduces and originated by the company to have impact on customers, to more and more attract the consumers to the brand. In every the loyalty programs or in promotion schemes, the company some customer retention tools. The coca cola also have these tools. The tools are : sample, coupon, price pack, cash refund, competition, contests, advertising etc. these tools are adopted by the coca cola to effect the sales of the product.

The brand development needs some technique to be followed. the brand development strategy of coca cola comprised redesigning of its brand development policies and ways to keep up with the changing mindset of its customers. Earlier, we observe that this brand believed in the following:

Afford ability



However, this brand development strategy of coca cola was re worked to pressure on the following:

Price value


The company has a mission ahead to be on top position on the market with providing a good quality of beverages to the client. Coca cola have great value for consumers, customers, bottlers, and communities. The coca cola company creates value by executing comprehensive business strategy guided by six key beliefs :

Consumer demand drives everything coca cola do.

Brand coca cola is the core business

Serve consumers a wide selection of the non alcoholic ready to drink beverages they would like to drink throughout the day.

Be the best marketers in the world

Think and act locally

Lead as a model corporate citizen.

Every company has certain strengths with which the company grows. Similarly we analyses that the coca cola have certain strengths that your company to grow more than other brands in beverages industry. These strengths are:

Most recognized brand in the world

Our analysis implies that coca cola is the major consumer brand name on the globe. Coca cola is currently ready where it generally does not have to spend as heavily on setting up a brand image since it is a very established product.

Consumer loyalty

Due to the high caffeine level and the distinct taste and brand image, the client loyalty for coke is very high. coke is regarded as the most premium product within the cola industry.

Largest market share in the carbonated drinks market

Coca cola gets the major market share in the carbonated drinks industry. because of this of the popularity coke can generate high profits which it is able to spend on advertising and product development for the purpose of increasing sales i. e. customers.

We analyses that the coca cola is brand making customer as important, tries to fulfill its customer and so customer become loyal to the brand.


The coca cola company products, brand loyalty and loyalty programs and how the company has achieved loyalty among its customers worldwide, some of the factors discussed include promotional activities, advertising, position of the company in the market and product differentiation by the coca cola company. Need for market information is the fact that it helps in decision making and also in finding the right strategy to increase market size and loyalty.

The company wants to provide refreshment to a large variety of audiences i. e. customers which fulfill their demands. The company must defeat other brands in the market. for this to achieve the coca cola launches various loyalty programs like mycokerewards, online mycokerewards etc. Coca cola adopted unique strategy, schemes and loyalty programs which created a brief history effect on the business to profit and sales. Different loyalty programs are launched by company to make and improve the customer's loyalty into the brand. The business enjoys benefits with all these programs and promotion. The benefits are like : coca cola become most wanted drink in the market, with various schemes and programs like mycokerewdard do really attract the client, coca cola also introduces new rinks under coke brand like sprite, fanta, dew that have different flavors and tastes which in the end attract the different range of customer, as brand loyalty increases the company enjoys profit and sales, coca cola now has made a image which can't be made easily by others the brand is popularly recognized and preferable drink in younger generation. The business invests increasingly more in loyalty programs, promotion, advertisement because the main focus is customer for the business. The customer loyalty should be maintained by the company by making new, creative loyaltyprograms.

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