Coca cola marketing plan Essay
The Coca Cola products appeal to a wide range of people from all races, genders, and ages. Coca Cola is famous for its worldwide rating and popularity as its products are sold to over 200 counties, while major competitors only sell in some countries, placing Coca Cola is an obvious and easily known by all people. The popularity of Coca Cola has increase very recognizable company. It is well known worldwide and its branding is persistently earned by Coca Cola exceeds all other beverage corporations and these funds would over the years. Is still rising to this day, and will continue into the future.
The finances show vital in the future of Coca Cola as it allows for the promotion of many other products. Many aspects of Coca Cola that show the superiority to that of competitors, ranging from promotional techniques to corporate structure. Some of these aspects include, positioning, marketing mix strategy, and implementation plan. These aspects place Coca Cola greater to competitors, originating Coca Cola to aspire higher objectives and missions. It is the mission at Coca Cola to refresh and completely satisfy the world and it is the vision to make a bottle of Coca Cola available within
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II. Company Background The Coca-Cola Company is a beverage company that incorporated on September 5, 1919. The Company have or owns and markets more than 500 nonalcoholic beverage brands, mainly carbonated beverages but also a variation of ordinary beverages, such as waters, enhanced waters, Juices and Juice drinks, ready-to-drink teas and coffees, and energy and sports drinks. It owns and markets a range of nonalcoholic carbonated beverage brands, which includes Coca-Cola, Diet Coke, Fan and Sprite. The Company’s segments include Eurasia and Africa, Europe, Latin America, North
America, Pacific, Bottling Investments and Corporate. The Company acquired Great Plains Coca-Cola Bottling Company (Great Plains) in the United States On December 30, 2011. During the end of the year on December 31, 2011, the Company acquired the remaining interest in Great Plains and Honest Tea, Inc. (Honest Tea). The Company acquired an additional minority interest in Coca-Cola Central Japan Company (Central Japan) in December 2011 . Len September 2012; it acquired around Coca-Cola Bottling Company announced that it had been acquired by the Company.
Effective February 22, 2013, Coca-Cola Co acquired interest in Fresh Trading Ltd. The Company markets, manufactures and sells beverage concentrates, sometimes referred to as beverage bases, and syrups, including fountain syrups, and finished sparkling and still beverages. Outside the United States, it also sells concentrates for fountain beverages to its bottling partners. The Company sells sparkling beverages and a variation of still beverages to retailers or to distributors, wholesalers and bottling partners who distribute them to retailers.
In addition, in the United States, it manufactures fountain syrups and sells them to fountain retailers, such as assistants and convenience stores who use the fountain syrups to produce beverages for fast consumption, or to authorized fountain wholesalers or bottling partners who resell the fountain syrups to fountain retailers. The Company’s core carbonated beverages include Coca-Cola, Sprite, Fan, Diet Coke / Coca-Cola Light, Coca-Cola Zero, Cheapest, Thumbs Up, Fresco, Inca Kola, Lift and Barb’s. Its energy drinks include Burn, No’s and Real Gold.
Its Juices and Juice drinks include Minute Maid, Minute Maid Pulpy, Del Valley, Simply, Hi-C, Dobbin and Sappy. The Company’s other still beverages include glace veterinary and Fuzz. The Company’s coffees and teas include Nested teas, Georgia coffees, Lea / Matte Lea teas, Conscience teas, Dagon teas and Attack teas. Its sports drinks include Powered and Aquarius. The Company’s waters include Ceil, Disdain, Ice Dew, Bonanza / Banana and Kinney. Over a Joint venture with its bottling partners, the Company productions markets and sells Lea / Matte Lea teas in Brazil.
During 2011, the Company announced a variation of brands, brand extensions and beverage products: the Latin America group launched Frogs Sabers Careers; in the Pacific group, Fan, a fruit- labored sparkling beverage, was reluctance in Singapore and Malaysia; Real Leaf, a green tea-based beverage, launched two varieties in Vietnam; and in South Korea it announced three flavor variants of the Georgia Emerald Mountain Blend ready-to- drink coffee beverage and Burn Intense, an energy drink; the Europe group launched Powered ION in Denmark, Norway, Sweden and France, France launched Powered Zero; in the Eurasia and Africa group, Turkey launched Sappy Pulpy, and India launched Fan Powder, an orange-flavored powder formulation; Cheapest Novena, a sparkling malt drink, was launched in Kenya and Uganda; and in Uganda Coca-Cola Zero was launched; in Egypt, it launched Sappy Frostbite; and Cheapest Gold, a sparkling flavored malt drink, and in Ghana, it launched Cheapest Malt, a dark malt drink.
The Corporation sold around 26. 7 billion unit cases of its products during 2011. Ill. Customer Analysis The consumption of Coca Cola has dramatically increased time by time over the world. This is an opportunity for Coca Cola to generate the product. The new trend Moreover, in the average American consumed 53 gallons soft drinks a year. The increasing on the consumer takes a bigger part in the market. Coke plays a role in oft drink population in the world. However, Coca Cola has to maintain even increase the carbonate consumption over the world. It will give opportunity for Coca Cola to widespread the product to fulfill consumer who already addicted with the coke.
We define the customer analysis based on STEP analysis to view the potential market and design the strategy for Coca Cola to widespread coke. Segmentation Place Consumption Demographic Cryptographic Behavioral Mall, restaurant, cinemas, retailer, railway station. World Wide Market. Most of Coca Cola’s consumers are teenager and adults. People who like party and have Junk food. In America, drink carbonate is being a behavior when they eat. Because of Coca Cola has global market, most of race drink Coca Cola (Asian,American,etc) Geographic Strengths As a carbonated soda drink product, Coca-Cola has the largest market share among similar product. On 2012, Coca-Cola has approximately 40% market share compared to similar product line like Pepsi cola, Dry. Pepper and so forth.
This happen so because Coca-Cola is the first carbonated soda drink in the world, thus they already have their own consumer loyalty. Cooperation built with some fast food restaurants also broadening Coca-Cola’s market share. Coca-Cola becomes the best global brand with the highest brand value ($ 77,839). One of the reasons why Coca-Cola has a high value is because their strong force on marketing and advertising. On 2012, they spent more than $ 3 billion to market coca-cola all over the world. This high cost advertising and marketing force has proven to increase brand recognition of Coca-Cola that served in more than 200 countries. Coca-Cola also maintains their great name through Corporate Social responsibility (CARS).
They start the campaign upon recycling, energy conservation and healthy vying. These activities have risen up Coca-Cola’s image and it increases their competitive advantage among competitors. Weaknesses Understudied product is the main weakness of Coca-Cola that might cause harm later in the future. Their focus on raising their main product, which is carbonated soda drink, like Coca-Cola, Fan and sprite, will only work as a short-term strategy, because people all over the world is now trying to fight obesity and live a healthier life. The consumption of carbonated drink was also remain stagnant in some countries as more people get bored or tries to have a healthier life.
Though Coca-Cola always tries to increase their brand image in the society, there are still some negative views about them. It’s really hard to get rid of such a view. Some people criticized Coca-Cola for the excessive amounts of water they use to product, especially in the water scarce region. The Coca-Cola Company has more than 500 brands under their wings. Tried to introduce some new product to the market, some of it resulted in failures. Opportunities Society is begging for practicality in every product they purchase. That is why the bottled water consumption is expected to grow all over the world. This is where Coca- Cola can grab the opportunity to grow bigger. They can try to expand their market and product through acquisition.
Acquisition can be a good solution for Coca-Cola, because recently they find it hard to penetrate new market with their existing product and it’s also hard to keep their growth level. Nowadays, people are fighting obesity that might lead into some serious diseases. They are craving for new healthy food and beverages. The Coca-Cola Company has the opportunity to expand their product range to fulfill the needs. Coca-Cola could also maintain its market share in he BRICK (Brazil, Russia, India and China), because their beverages consumption is growing day by day. Threats Coca-Cola as a product that has established for more than 50 years cannot resist the fact that consumer’s tastes starts to change day by day.
They are starting to realize that carbonated drinks are bad for their health. This is the most serious threats for Coca-Cola since carbonated drinks become their main product. The saturated carbonated drinks market is also the threat for them. We all know that Coca-Cola concentrate on their carbonated drink and the market is saturating because nonuser’s tastes are changing. If they cannot innovate or expand their product range, everything will be worst. The strict competition with PepsiCo also becomes a threat for Coca-Cola. Their bloodless war in carbonated drink market keeps going on every year. Now, Pepsi is fiercely trying to grab the BRICK market, especially India.
Coca Cola’s gross profit and net profit margin also decreasing over the past few years and may continue to decrease due to higher water and other raw material costs. V. Competitor Analysis Coca-Cola and PepsiCo have been in a bloodless war of carbonated soft drink for more than 50 years. They are having like an eternal warfare of each other and at the same time, they cannot get away from each other. This happens so, because there is no more closely- of perfect competitor to Coca-Cola rather than Pepsi, vice versa. Realizing their origin potential market in The United States America, both of them have fought fiercely to grab the more than $ 60 Billion market.
As two brands that are fighting to be the best in their class, Coca-Cola and Pepsi are competing to provide as many various product ranges as possible. Coca-cola release coke zero and diet coke to answer the challenge that society gave them to revive a healthy drink. PepsiCo in the other side made Pepsi blue with its lime flavor to make differentiation with coca-cola. Though both of them are trying to innovate their product into some certain extends, not all of them ended in success. Coca-cola emerging BRICK market that can brighten their name in the world. Coca-Cola and Pepsi are not the one and only carbonated soft drink producer in the world. There are also Dry.
Pepper and Cheapest, unfortunately its hard for them to compete with coca-cola because they market is still local in the US and some countries surrounding. But this does not mean they do not have the chance to expand their market worldwide, include the emerging BRICK market. Both of Dry. Pepper and Cheapest are not new player on the screen, they have been launched in almost the same time as Coca-cola and Pepsi, but it is a bit hard to penetrate some market segment in some regions. Though Dry. Pepper is produced by The Coca-Cola Company and Cheapest is produced by Academy. Their famous producer does not help that much in making the product go worldwide. VI.
Marketing Objectives and Strategies Marketing objectives follow: ; Improve Coca-Cola’s brand image towards further global/local responsible attitude. Show the target audience about features and benefits of Coca-Cola’s new product. ; Boost sales based on the predicted overtaking of carbonated drinks by healthy drinks by next future. Product Description The new product that will be implemented is the Diet Coke of Coca-Cola’s product portfolio. This new beverage packaging is aimed to increase the Coca-Cola portfolio. Its idea is that the bottle of Diet Coke is used for refillable used and it is appeal to sports or fitness consumers. The composition of its container itself is made from sustainable sourced materials and production methods.
It is can be seen as unique n the way the customer is encouraged to re-use or refill it. Being the first one that offer new product feature is an evidence for competitive strategy. Future improvements to the product is to make the impression the corporation cares about satisfaction of the customers and also for technology improvements will be used as further design. Sporty and fitness design Every coke product has been put in the bottle by the providing unit logo on the bottle Ergonomically designed Benefits Lifestyle of coke meanings Related to Health or fitness lifestyle Cheaper product in the long run Sustainability and experienced connections
Pricing Strategies Coca-Cola have high market share, competitor forces has push the customer sensitivity to price to be fairly high, sales volume is of course high and profit margin is as low as the Coca-Cola products are rapid moving consumer goods. This point is also to make the penetration strategy. Penetration pricing means setting the lower price than high price to get potentially dominant market share. This can only be done where the demand of the product is believed to be highly flexible, basically the demand is price sensitive and both new consumers will be attracted and existing consumers will buy more of the product cause of the low price. An effective penetration strategy may lead to large amount of sales and large market shares.
This strategy also encourages complimentary products for example the main product might be priced low to attract sales. It is also will work well in promoting re-use of Coca-Cola packaging via a beverage holder of vessel which is purchased separately and refilled. The possible disadvantage of carrying this strategy is the likelihood of competitors doing the same strategy by lowering their price, therefore damaging any advantage of the reduced price. Price penetration is most suitable in industries where administration is important. The product that gain high market penetration often becomes the industry standard, in concerns to the new Coca-Cola beverage vessel, and it is trying to create a standardization of how consumers use the beverage container.
Coca-Cola is likely to get hard competition soon after the introduction of the new product, although the product that gain high market penetration often becomes the industry standard and other products, even superior products become Marketing Communications The areas of the marketing communications mix will all be seen to consider the elating strengths and weaknesses then how those will be implemented to this plan. Advertising Any payment form of non-personal presentations, promotion ideas, goods or services by a recognized sponsor. Personal Selling Personal performance by the company’s sales force for the purpose of making sales and building customer relationships. Sales Promotion Short-term incentives to inspire the purchase or sale of a product or service.
Public Relation Constructing good relationships with the firm’s various publics by gaining favorable publicity, building up a good corporate image, and manage or heading off unfavorable rumors, stories, and events. Direct Marketing Straight communications with carefully targeted individual consumers to get a direct response and cultivate lasting customer relationships. VI’. Conclusion The marketing strategy that will be implemented for Coca-Cola’s new product is will come into place in 2013. From the trends emerging now this plan has recognized the carbonated drinks market has perhaps peaked and likely to be overtaken by healthier drinks as the market leader in the soft drinks market.
Studying Coca-Cola’s product range has identified the Diet Coke range as the most likely, with marketing pull to still succeed in the future. Its kind has fights health anxieties which are found in the Coca-Cola top product. Coca-Cola is all about appeal into a lifestyle, and the new lifestyles nowadays will much more health conscious. The report that already showed the result for coke to tie them up with sports sponsorship to promote a brand image of health and fitness. References Coca Cola SOOT analysis 2013 | Strategic Management Insight. (n. D. ). Analyses/coca-cola-soot-analysis. HTML Coca-Cola – 2011 Year In Review – Operating Groups. (n. D. ).