Coke Marketing Strategy Essay
Coke Marketing Strategy
This study will develop the understanding of the implementing Strategies: Marketing, Finance/Accounting, R&D, and MIS Issues.
Basing on market activity for Coca-Cola Company and the corporate strategies developed in the parts of the Individual Project propose functional strategy of the company analysis will be properly discussed. Further more, the paper should develop discussion on marketing strategy, including marketing segmentation and 4 P`s (Product, Price, Place, and Promotion). It also aim to develop a financial budget for the period of planning horizon, develop R& D plan and propose what management information system would be best implemented.
Coca-Cola Functional Strategy
Developing a strategy timeline means the company should adopt a 10 year period in which the strategies and especially the marketing strategies are to be adapted. The timeline strategies can be analyze by considering the three determining factors namely the timing, strategy and or objectives and expected output. At the first to second year under timing, the objectives are product pricing and obtain a more reliable information management system for the company all over the world. “On the third to fourth year it has an objective to have contacts with the subsidiaries offering low supply chain cost and efficient services. While on the fifth to six years, its objectives were continuous introduction of new products in different directions with the changing demands of consumers. Lastly, on its seventh to eight year, the objective will be introduction of technology in advertisement and to advertise more about the top selling products instead of just high end products. The expected output through out the years is market stability in the first to second year followed by resource exploitation, expansion and profit (David, Fred R.).
Coca-cola marketing strategy
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The marketing strategy that Coca-cola will have to develop over the next year will require the expansion of their company by building new warehouse all over the world. The goal for Coca- cola in order to analyze strategic situation is further establishing production facilities, distribution networks, sales equipment, and technology.
In order to analyse the strategic situation first of all SWOT analysis have been under taken, which I have presented as under. The SWOT strategic strategies means strength (S), weaknesses (W), opportunities (O), and threats (T). One should know that under these strategies, strength covers below:
· Strong Brand name.
· Extended customer in more than 200 countries.
· Use of SAP R/3 Enterprise Resource planning software
· Low threat of new entrants.
· Continuous training programs for employees.
· High budgets of advertising and promotion.
· Good relations with media.
· Web based presence.
Another analysis was threats:
· Current economic climate.
· Over reliance on the bottlers.
· Results to be achieved in future can be less than projected
Coca-cola company financial budget
Company’s financial statements and the financial reporting process, the systems of internal accounting and financial controls, the internal audit function, the annual independent audit of the Company’s financial statements, the Company’s compliance with legal and regulatory requirements, and its ethics program, the independent auditors’ qualifications and independence and the performance of the Company’s internal audit function and independent auditors. In fulfilling its duties, the Audit Committee, among other things, shall:
1) have the sole authority and responsibility to hire, evaluate and where appropriate replace the independent auditors;
2) review with management and the independent auditors, the interim financial statements and the Company’s disclosures under Management’s Discussion and Analysis of Financial Condition prior to the filing of the Company’s Quarterly Reports on Form 10-Q;
3) review with management and the independent auditors the financial statements to be included in the Company’s Annual Report on Form 10-K (or the annual report) including
(a) their judgment about the quality, not just acceptability, of the Company’s accounting principles, including significant financial reporting issues and judgments made in connection with the preparation of the financial statements;
(b) the clarity of the disclosures in the financial statements; and
(c) the Company’s disclosures under Management’s Discussion and Analysis of Financial Condition and Results of Operations, including critical accounting policies;
4) review and discuss with management, the internal auditors and the independent auditors the Company’s policies with respect to risk assessment and risk management;
5) review and discuss with management, the internal auditors and the independent auditors the Company’s internal controls, the results of the internal audit program, and the Company’s disclosure controls and procedures and quarterly assessment of such controls and procedures;
6) establish procedures for the receipt, retention and treatment of complaints regarding accounting, internal accounting controls and auditing matters, and procedures for confidential, anonymous submission of concerns by employees regarding accounting and auditing matters; and
7) review and discuss with management, the internal auditors and the independent auditors the adequacy and effectiveness of the Company’s legal, regulatory and ethical compliance programs.
The Company has adopted a positive and up to date strategy which has helped the Company to stay on the leadership position in the industry. The wide range of the products and a looking ahead strategy as compare to the competitors has given the company a competitive edge. As the company has always offered more than what has been expected from the company, still there is a lot to offer in the kitty of the company.
Coke is the big daddy of the beverages category, and ranks number one on list of global brands. The company, which was incorporated in 1919, owns half of the market globally, and has some 400 brands in approximately 200 markets worldwide. Coke owns four of the five leading soft-drink brands: Coca-Cola, Diet Coke, Sprite, and Fanta. However, the company hasn’t been keeping up in the lucrative bottled water and sports drink categories.
David Fred R. “Strategic Management Concepts and Cases, Eleventh”. Edition, pp.155-160.
“The Coca-Cola Company, Mission, Vision and Values”. Available at http://www2.coca-cola.com/ourcompany/mission_vision_values.html