Coco Cola Company adopt differentiation strategy by Creating innovative design , Refreshing its brand image , Providing an extraordinary service and using technological capability . Differentiation Strategy means that a company that competes by offering unique products that are widely valued by customers is following a differentiation strategy. And the company tries to create a unique and distinctive product or service for which customers will pay a premium. Differentiation Strategy might be exceptionally high quality, extraordinary service, innovative design, technological capability, or an unusually positive brand image.
The Key to this competitive strategy is that whatever product or service attributes is chosen for differentiating must set the firm apart from its competitors and be significant enough to justify a price premium that exceeds the cost of differentiating. Creating innovative design makes its product unique . Creating innovative design allows its product widespread bying using advertisement and designing product. To achieve this ,Coca Cola company invites expertise to create a new advertisetment exapecially for China by the concept of “think local,act local”.
The most state-of-the-art advertisement of the chinese advertisement is called “MAKE IT REAL”. Also,there are around seven new advertisements playing in China from 2000 to 2010. About product design,Coco Cola company started use plastic bottom in 1985 instead of using glass bottem. The patterns and the pictures are always changing based on different festivials or event. This approach is successful because Coca Cola is much more popular among China. In 2008,there is a olmpics logo in Coca Cola soft drinks’ bottem.
And the advertisement of “Make It Real” is arising a disscution among the soiety. Refreshing its brand image is one of the key points. As we have mentioned before,The mission of Coco Cola is to bring happiness, shares happiness and do enjoy have a great time with your friends, relative and lover. Coco Cola company creates some advertisement based on chinsese culture. From2005 to 2011,here are some advertisements playing on Lunar New Year whch is selling that having fun and sharing happinese with relatives via drinking Coca Cola.
Due to the increaing sales volum in 2005, there are 18% growths of Coca Cola. In 2011,Xing Mui is now successfully among the top five brands in China’s carbonated soft drink market. Providing an extraordinary service is the special service of Coca Cola Company. Coca Cola Company is not only selling Coca Cola but also produce other kind’s soft drinks, water and fruit juice. For example, Coco cola, Diet Coke, Sprite, Fanta and some is very popular in Mainland China like Tian Yu Di (Heaven and Earth) and Xing Mu (Smart).
So, we can see that there are different kinds of soft drinks which is perfectly fit teenagers. Water and fruit drinks also to promote a new image of Coca Cola company that drink into healthy ways and keep you healthy in drinking. This approach is successful because Xing Mu is now successfully among the top five brands in China’s carbonated soft drink market. It implies that the Chinese people regard this new product as one of their favorite drinks. Using technological capability is also a key point making it successfully.
In attempt to keep its competitive, Coca Cola Company invest advanced machine to lower the product cost. In2009,Coca Cola invested $90 million on constructing the Innovation and Technology Centre in Shanghai and opened two more bottling plants in different province in China such as Jianxi province. This approach is successful because Coca Cola Company’s competitive was increased. In 2008,Coca Cola Company opened a factory in Shanshui where is many outstanding chinese brands’ headcenter such as Qingdao Beer Comoany. It implies that Coca Cola really enhace its competitivenesss.