Question & Answer: Learning Activity #1 Using the Business-Level Strategies described in Chapter…..

Coca Cola has used each of the strategy mentioned below to its full effect and probably therefore it holds such a strong position in the market today.

• Cost leadership: Coca Cola has the lowest cost of operation i.e. cost involved in manufacturing and distributing the soft drink is almost the lowest as compared to other players in the market and hence it can keep its selling price low.
• Differentiation: It has always positioned its product as something which is different from other soft drinks in the market, be it the taste or the health, coca cola’s marketing strategy has always involved some kind of differentiation.
• Focused-Cost leadership and focused differentiation: Analyzing and targeting the niche market has always been one of the agendas of Coca-Cola. It has focused primarily on young audience i.e. a target (audience a niche audience) and in that particular segment cost and different positioning of the product is stressed which has always been the main driving force for the organization as a whole.