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Cash Cows

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Cash Cows

These are the products which are in low growth markets with high market share.
Products which are market leaders in their specific industry and their industry is
not expected to see any major growth in the future are considered as Cash Cows.
These products are the money churners for the company and require very low
investments to sustain their leadership and profitability in the market.
1. They are the money churners for the company
2. . These businesses have a high market share in a low growth industry that is
mature not declining nor growing.
3. They require less cash investment and generate more cash than required
Cash cows
Cash cows the products that have a high market share in a market that has low
growth. Below are few products which have been the cash cow for the company
for all these years:
Coke Or Coca Cola: Coke for years has been a market leader in carbonated soft
drink segment and a major cash generator for the company. Having a presence in
200+ countries, coke has been the no.1 choice for millions of consumers all these
years when it comes to choosing a carbonated soft drink.
Coke is a carbonated soft drink manufactured by The Coca Cola Company.
Recognized as the world’s most valuable brand, Coca Cola is often associated with
happiness. Operating in over 200+ countries and the company boasts a solid
marketing mix with 450+ product brands.
The Marketing Mix of Coca Cola and the strength of its product, price, place and
promotion strategies.
Product:-Coca Cola boasts a strong product line and offers different products in
different countries and regions. Coca Cola adapts its products to different regional
tastes and customer preferences.
Price:-One of the biggest competitors that Coca Cola has in the beverage market is
Pepsi. Coca Cola follows competitive pricing for their products. The company has
to be quite careful with the pricing of their products, if Coke prices its products too
high as compared to Pepsi in a particular segment, then the consumers might
switch especially in developing countries where the consumers are price sensitive.
Place:-Coca Cola has a presence in 200+ countries and has an extensive
distribution network which not only covers the urban regions but rural areas as
well. The company produces the beverage using its secret formula and transports it
to the bottlers located in various parts of the globe. The bottlers then fill the
beverage in the bottles and then transports those bottles to different stockiest, then
to distributors and finally to retailers from where consumers can buy the products.
Promotion:-Promotion plays an important role in the marketing mix of Coca Cola,
the company uses a proper mix of ATL, BTL and Digital channels for creating
awareness and promoting their products.
Coca Cola is best known for its clutter-breaking and out of the box marketing
campaigns. The company very well uses experiential marketing to connect and
engage with customers.

Due to low customer loyalty and high competition in the beverage industry, the
company needs to pay heavy focus on the advertising and promotion of the
products to increase sales and create top of the mind recall in the customer’s mind.

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