Introduction
Customer relationship management (CRM) is a process in which a business or other organization
administers its interactions with customers, typically using data analysis to study large amounts of
information. CRM systems compile data from a range of different communication channels,
including a company's website, telephone, email, live chat, marketing materials and more recently,
social media.
The main components of CRM are building and managing customer relationships through
marketing, observing relationships as they mature through distinct phases, managing these
relationships at each stage and recognizing that the distribution of the value of a relationship to the
firm is not homogeneous. When building and managing customer relationships through marketing,
firms might benefit from using a variety of tools to help organizational design, incentive schemes,
customer structures, and more to optimize the reach of its marketing campaigns.
Why CRM benefits businesses?
The use of CRM systems can benefit organizations ranging from small businesses to large
corporations, through:
Having customer information such as past purchases and interaction history easily accessible
can help customer support representatives provide better and faster customer service.
Collection of and access to customer data can help businesses identify trends and insights about
their customers through reporting and visualization features.
Automation of menial, but necessary, sales funnel and customer support tasks.
Who should use a CRM?
The short answer is that any company that wants to maintain a relationship with their customers can
benefit from using a CRM system. To get a little bit more specific, there are two groups of
companies that often see the most benefit:
B2B companies, which typically need to track leads and customers across long sales cycles
and through upgrade paths for example a software company, a recruiting firm.
Considered- purchase B2C companies for example a jeweler, a landscaping service, or a
realtor.
Types
Strategic CRM: -Strategic CRM is concentrated upon the development of a customer-centric
business culture. The focus of a business on being customer-centric (in design and implementation
of their CRM strategy) will translate into an improved CLV (customer life time value) in
organization.
Operational CRM: -is a broad term that covers concepts used by companies to manage their
relationships with customers, which may include attracting the customer, analyzing the customer,
and satisfying the customer. CRM is not simply advanced technology; it is a comprehensive
approach to customer relationship management.
Analytical CRM: - The role of analytical CRM systems is to analyze customer data collected
through multiple sources and present it so that business managers can make more informed
decisions. Analytical CRM systems use techniques such as data mining, correlation, and pattern
recognition to analyze the customer data. These analytics help improve customer service by finding
small problems which can be solved, perhaps by marketing to different parts of a consumer
audience differently.
Collaborative CRM: - The third primary aim of CRM systems is to incorporate external
stakeholders such as suppliers, vendors, and distributors, and share customer information across
groups/departments and organizations. For example, feedback can be collected from technical
support calls, which could help provide direction for marketing products and services to that
particular customer in the future.
Campaign Management: -is the planning, execution, tracking, and analysis of a marketing
initiative. This might be a marketing campaign to launch a new product launch or an event but
could equally be a small promotion. Campaign management software helps businesses manage the
various aspects of a marketing campaign.
The Three Pillars of CRM
People, process, and technology are each a critical cornerstone of a successful customer
relationship management strategy. Not giving proper attention to each will make those pillars
crumble and your structure fall.
What is online CRM?
It's a category of integrated, data-driven software solutions that improve how you interact and do
business with your customers. CRM systems help you manage and maintain customer relationships,
track sales leads, marketing, and pipeline, and deliver actionable data.)
Background History of Coca-Cola Company
Coca-Cola is one of the world famous and largest brands in beverages industry. The company was
established Doctor John Pemberton who was a pharmacist in 1886 in Atlanta, Georgia USA. The
brand has since become household drink in over 200 countries across the globe. The drink Coca-
Cola was originated in 1886 by an Atlanta pharmacist, John S. Pemberton (1831–88), at his
Pemberton Chemical Company. His bookkeeper, Frank Robinson, chose the name for the drink and
penned it in the flowing script that became the Coca-Cola trademark. Pemberton originally touted
his drink as a tonic for most common ailments, basing it on cocaine from the coca leaf and caffeine-
rich extracts of the kola nut; the cocaine was removed from Coca-Cola’s formula in about 1903.
Pemberton sold his syrup to local soda fountains, and, with advertising, the drink became
phenomenally successful. By 1891 another Atlanta pharmacist, Asa Griggs Candler (1851–1929),
had secured complete ownership of the business (for a total cash outlay of $2,300 and the exchange
of some proprietary rights), and he incorporated the Coca-Cola Company the following year. The
trademark “Coca-Cola” was registered in the U.S. Patent Office in 1893. The product range of
Coca-Cola comprises non-alcoholic beverages such as soft drinks, bottled water, sports drinks and
energy drinks. The company’s most popular soft drink is certainly the soft drink Coca-Cola. Brand
rankings list the brand, for good reasons, as one of the most valuable and recognizable brands
worldwide. they are serious about making positive contributions to world. That starts with reducing
sugar in drinks and bringing new and different drinks to people everywhere. It also means
continuously working to reduce environmental impact, creating rewarding careers for associates,
and bringing economic opportunity wherever they operate.
What Brands does Coca-Cola Company offer?
The Coca-Cola Company is a total beverage company, offering more than 500 brands—from
sodas to waters, from coffees to teas, from juices to kombu Chas —in more than 200 countries.
In addition to the Coca-Cola brands, our portfolio includes some of the world’s most valuable
beverage brands, including:
AdeS soy-based beverages
Aquarius
Ayataka green tea
Chivita
Ciel water
Costa Coffee
Dasani waters
Del Valle juices and nectars
Fair life
Fanta, Fresca, Fuze Tea
Georgia coffee
Gold Peak teas and coffees
Honest Tea
ILOHAS
innocent smoothies and juices
Minute Maid juices
Powerade sports drinks
Simply juices
Schweppes
smart water
Sprite
Topo Chico
vitamin water
Coca- Cola in Ethiopia
Coca-Cola was first bottled in Ethiopia's capital Addis Ababa in 1959 by the Ethiopian Bottling
Share Company, which later opened a second branch in Dire Dawa in 1965. The two plants were
nationalized in 1975 and ran as public companies until 1996, when they were bought by private
investors. Just prior to that, in 1995, the Coco-Cola South African Beverage Company (Coca-Cola
SABCO) bought shares in the business and in 1999 signed a joint venture agreement with the
plants. In 2001, Coca-Cola SABCO increased its shares to 61 percent and the company changed its
name to the East African Bottling Share Company. EABSC continues to run the two plants in Addis
Ababa and Dire Dawa.
How many workers does Coca- Cola have currently?
Coca-Cola and its nearly 225 independent bottling partners employ more than 700,000 people,
helping bring economic opportunity to local communities worldwide. Due to the strength of this
unique system, we are able to create global reach with local focus. While many may view us as
“Coca-Cola”, our system operates through multiple local channels, and our bottling partners work
closely with customers to execute localized strategies developed in partnership with our company.
Customers then sell our products to consumers at a rate of 1.9 billion servings per day.
Coca-Cola total number of employees in 2020 was 80,300, a 6.84% decline from 2019.
Coca-Cola total number of employees in 2019 was 86,200, a 37.7% increase from 2018.
Coca-Cola total number of employees in 2018 was 62,600, a 1.29% increase from 2017.
Coca-Cola total number of employees in 2017 was 61,800, a 38.38% decline from 2016.
CRM at Coca cola
Operational CRM at Coca-Cola
Using SAP CRM system Coca-Cola was able to achieve their goal of customer focus. The CRM
help’s the existing processes and also improve the new functions to satisfy the customer. These kinds
of CRM help update and improve the market share for the computer and create a better name with the
customer and also reduce the cost for transportation.
They have created a fan page in Facebook which became a very popular with the customers and when
they are connected to Facebook, they can actually keep on getting update on recent action by Coca
Cola. They can send group message in Facebook. Can gain feedback from customer and provide
solution online. Coca Cola is able to advertise in Facebook and gain more customers through the
social site. Coca Cola also can gain all the details of the customer from the Facebook page and
provide appropriate personalized service to gain more customer and also retain the existing
customers.
These kind of social networking site help the company to be closer to the customers. Marketing and
Advertising in these kind of site will also help the company to grown better. Some of the company
does not accept this fact but Coca cola established their Facebook fan page in the third quarter of
2008 by the mid of 2009 there were around 3.4 million fan. But this fan page was created by a Coca
Cola fan after much consideration Coca Cola used it as a promotion page and a place where they can
build a relationship with the customers.
Coca Cola gained an idea and used this Facebook page as a promotion page and was able to gain
information from the Facebook wall and provide promotional offers to the customers. The company
able to attract all the customer, when you go to the Facebook wall page you can see all the language.
From this we can see that the company is able to build a good name in all the countries. Coca Cola is
the second largest fan page in Facebook as they are around 3.4 million fans in it. When we calculate
the number of members join per day would come around 3500. So Coca Cola through this is the best
way for promotion and gaining the customer feedback.
Collaborative CRM at Coca-Cola
Collaborative customer relationship can be defined as a relationship-building strategies which is
target on strong and lasting commitment, are especially appropriate for customers.
Coca-Cola is stress in their customer relationship as an organization. For example, Coca-Cola will
corporate closely with their largest customers in order to build up versatile relationship. Moreover,
operational linkages and information sharing system is important for keeping the product and service
that offered is suit with the customer’s needs and wants. Coca-Cola has refined their collaborative
customer relationship process in three main markets which are Mexico, Japan and Switzerland. They
work with their customers in order to provide the better-quality beverage selection to every consumer.
For instance, Oxo which is a convenience store chain that has 5700 stores in 30 states in Mexico has
recognized the Coca-Cola Mexico’s Collaborative Customer Relationship program. This program
helps Coca-Cola and their customers to understand the consumer preference. On the other hand, it
enables Coca-Cola to transfer a transactional and commercial link to a collaborative and
multifunctional business relationship.
Analytical CRM at Coca-Cola
Given the size of its operations, Coca Cola generates a substantial amount of data across its value
chain – including sourcing, production, distribution, sales and customer feedback. Over the years, the
company has embraced Big Data to drive its business strategic decisions.
Coca Cola has been investing extensively in research and development, especially in artificial
intelligence, to better leverage the mountain of data it collects from customers all around the world.
This effort has helped the firm better understand consumer trends in terms of flavors, and customer’s
preference for healthier options in certain regions.
In addition, given Coca Cola presence in 200 plus countries with varying customer trends and the rise
of innovative brand, it has become increasingly important for the beverage company to understand
and track the evolving taste of its customers and introduce a social consciousness to its product
offerings. Coca Cola markets and sells its products in over 200 countries, but despite developing a
global and universal image in 127 years, the brand like any other, needs to address different regional
preferences such as flavor, calorie count, sugar content, consumer behavior and of course
competition.
Strategic CRM at Coca-Cola
Business strategy of Coca Cola is Think local, act local The integration between the local bottlers and
delivery to the customers is crucial to the company’s overall efficiency and keeping the customers
satisfied. Full-service vending, Direct Store Delivery (DSD), and equipment services are very
important for bottlers’ business operations and profit centers DSD gather customer information to
distributors. With that specific data they improve cost control in delivering products. Â They receive
request from Sales representatives, Mobile device and Service staff. With these details the store can
respond easily to the customers and make the process more efficiently. The RFID gives feedback that
benefits research, marketing and product development
We can improve customer service and satisfaction using better CRM. Using advance CRM, we can
get the required information of the customer. IT system again collects all the data and analysis them
and provide information to provide a better product that suit the customer needs. Using SAP CRM
system Coca-Cola was able to achieve their goal of customer focus. The CRM help’s the existing
processes and also improve the new functions to satisfy the customer. These kinds of CRM help
update and improve the market share for the computer and create a better name with the customer and
also reduce the cost for transportation.
Coca-Cola provides lower prices for their products to their customers: Keeping costs lower in
producing their products to their consumers than their competitors, basically help them to provide
costs advantages which will benefit their customers all over the world. Competitors pricing is very
relevant element for Coca-Cola’s overall success, as this keep them in line with their rivals, if not
above them.
The benefits entertained and challenges faced by employing CRM
Benefits including: -
Better knowledge of customers.
Better segmentation.
Better customer retention.
Better anticipation of needs.
Better and speedier communication.
Better protection of data privacy.
Challenges
1. The medicinal challenge: -The first label for the new Coca-Cola syrup said in part: “This
intellectual beverage and temperance drink contains the valuable tonic and nerve stimulant
properties of the Coca plant and Cola nuts . . . a valuable brain tonic and a cure for all nervous
affections: sick head-ache, neuralgia, hysteria, melancholy, etc.”
Nine years after its launch, Frank Robinson, the man who came up with the Coca-Cola name and
the Spenserian-script trademark, had a brilliant insight. “We found that we were advertising to the
few when we ought to advertise to the masses.”
The new slogan: “Drink Coca-Cola. Delicious and refreshing.”
2. The fountain challenge
Four years later, two Chattanooga lawyers showed up in the office of Asa Candler who had taken
control of the company from founder John Pemberton. They wanted to buy exclusive rights to
bottle the beverage. And Candler sold it to them . . . for the sum of one dollar.
A bad bargain? Not necessarily. The two lawyers divided the country between them and diligently
recruited talented individuals to set up Coca-Cola bottling companies.
outsold fountain sales for the first time.
Without this bottler network, it’s possible that Coca-Cola would not have become the powerful
brand it is today.
3. The cocaine challenge: - Before the arrival of the 20th century, cocaine was touted as the world’s
newest wonder drug, a cure for almost everything. One of its biggest supporters was Sigmund
Freud who wrote an article entitled Über Coca, “a song of praise to this magical substance.”
Fortunately, wiser heads at Coca-Cola prevailed and four years after making the bottler deal, Coca-
Coca removed cocaine from the formula, substituting caffeine instead.
4. The bottle challenge: - With hundreds of bottlers selling Coca-Cola around the country, there was
no uniformity in how the product looked. There were many different bottle designs. So Coca-Cola
held a contest to design a bottle that could be recognized in the dark. The winner produced the
world’s most-famous package designs, the contour bottle. Even today, its iconic bottle is one of
Coke’s best attributes.
5. The Pepsi challenge: - There was one problem with the contour bottle: It held only 6.5 ounces.
But strange as it might seem, it took Pepsi-Cola 23 years to exploit this weakness.
Experience gain from Coca-Cola
Simplicity
Despite having grown into a massive global industry with innumerable products, Coca-Cola has
never strayed from its timeless and basic ideals. Throughout the decades and multitudes of
marketing campaigns, Coca-Cola has remained consistent when communicating one strong and
effective message: pleasure. Enduring, simple slogans such as “Enjoy” and “Happiness” never go
out of style and translate easily across the globe.
Personalization
Despite its status as a global icon, Coca-Cola understands that it has to find a way to speak to
consumers at a more personal, localized level. Initially introduced in Australia, the company’s
Share a Coke campaign has now successfully expanded to over 50 countries. Each country’s
offerings are customized to its local culture and language, with the most popular names of each
region printed on cans and bottles in place of the company’s moniker. This campaign is the perfect
example of effectively applying a localized positioning strategy to a global market.
Socialization
Social media is one of the fastest-growing tools for effective international marketing, giving
companies the ability to reach consumers on a worldwide level through a single platform. Besides
being an effective localization strategy, the Share a Coke campaign also successfully utilizes social
networks to engage consumers and prompt them to share their Coke experience with others.
According to the Wall Street Journal, there were over 125,000 posts about the campaign in just one
month after it launched in the United States.
Conclusion
As we discussed before Coca-Cola company has many strengths that can be role or example for
other companies specifically for Ethiopian organizations.
So, what can we learn from Coca-Cola when it comes to building a successful global brand?
Making human connections, remaining innovative while staying true to simple principles, and
creating branded experiences are all global marketing techniques that have contributed to Coca-
Cola’s place as an industry leader, even after 125 years. For more insight on expanding into new
markets, check out our market penetration guide or our other global marketing-focused posts.