Associates Degree HRMPrinciples of MarketingMAPS College
Marketing Process at Coca Cola CompanyCrafted by Global
Consultancy ServiceMarketing Officer Ms. Mubeena Ibrahim
Name:Mubeena IbrahimNational ID No.A12392College ID No.
ContentsAbout the Company2Marketing Plan2a.Marketing
Audit2b.Environmental Analysis3c.SWOT Analysis4d.Marketing mix
(4ps)5e.Target Markets6a.Marketing Orientation8b.Benefits of
Marketing Orientation8- More Focused Production8- Concentrated
Strategy8- Long-Term Profitability8c.Costs of Marketing
Orientation9- Risk of Underestimating the Market9- Challenges of
Quickly Responding to Market Changes9a.Extended Marketing
Mix10b.How the additional Marketing mix Assist the
Company10a.Business to Business (B2B) Marketing11b.Business to
Consumer (B2C) Marketing11c.How B2B Differ from
B2C11V.International and Domestic Marketing compared:
P4.312a.International and Domestic Marketing12b.How International
Marketing Differ from Domestic Marketing (with examples from the
company)12Conclusion14References:14
Executive SummaryGlobal Consultancy Service has created this
marketing plan after critically examining and thoroughly
researching over it. It consists of examining market research,
auditing situation analysis and carefully studying the soft drink
industry and possibilities for the products of Coca Cola Company in
the market. We have carefully scrutinized the internal and external
business environments and critically examined the industry in
general, considering all external threats and opportunities.
About the CompanyThe Coca-Cola Company is an American
internationalbeveragecorporateof nonalcoholic refreshment
concentrates and syrups. The companys corporate headquarters is
located in Atlanta, Georgia, United States of America. The current
chairman of Coca-Cola is Muhtar Kent (Wikipedia, 2014).The
Coca-Cola Company operates in more than 200 countries and has more
than 3500 beverage products. Its products include, sparkling
beverages, like waters, juices, sports drinks, teas and also energy
drinks. It produces four of the top nonalcoholic beverages which
include Coca-Cola, Fanta, Diet coke and Sprite (Coca-Cola,
2014).
Marketing Plan
I. Internal & External Environmental Analysis: P1.1
a. Marketing AuditA marketing audit is a comprehensive,
systematic, periodic evaluation of a companys marketing
capabilities.
Figure 1: Operating Income of Coca-ColaBeing the leading company
in the soft drink industry, the Coca-Cola Company boasts of the
largest market share (Project on Marketing Strategy, 2014). The
operation revenue earned by the company can be illustrated by the
following pie chart.
The global unit sales of the products of Coca-Cola Company is
increasing from the last ten years. The data can be represented by
the following chart.
Figure 2: Operating Income of Coca-ColaSo there is positive
growth in the market of the Coca-Cola Company.b. Environmental
AnalysisThe market analysis investigates both the internal and
external business environment. It is vital that like any other
product Coca-Cola carefully monitor both the internal and external
aspects regarding its business as both the internal and external
environment and their respective influences will be decisive traits
in relation to Cokes success and survival in the soft drink
industry.
Internal Business EnvironmentThe main attributes in the internal
environment include efficiency in the production process, through
management skills and effective communication channels. To
effectively control and monitor the internal business environment,
Coke must conduct continual appraisals of the businesss operations
and readily act upon any factors, which cause inefficiencies in any
phase of the production and consumer process.
External Business EnvironmentThe External business environment
and its influences are usually powerful forces that can affect a
whole industry and, in fact, a whole economy. Changes in the
external environment will create opportunities or threats in the
market place Coca cola must be aware off. Fluctuations in the
economy, changing customer attitudes and values, and demographic
patterns heavily influence the success of Coca Cola on the market
and the reception they receive from the consumers.
c. SWOT AnalysisSWOT is the study of strengths, weaknesses,
opportunities and threats. This is analysis helps with the
anticipation of future developments for the company.
d. Marketing mix (4ps)Marketing involves getting the right
product to the right place, at the right time, at the right price
and with the most suitable promotional activity (marketing
strategy, 2013).
The 4 Ps of Marketing: Product, Price, Place and
PromotionProduct (Soft Drinks)Coca-Cola is the leading provider of
soft drinks in the world. In 2010, it not only had the No. 1
selling soda with regular Coke, but its Diet Coke brand outpaced
Pepsi for second billing. Within the pop category, Coca-Cola has a
number of brand variants, including Dr Pepper and Sprite. The
company also produces fruit juices and sports drinks. Emphasis on
the soft drink industry, though, has contributed to Coca-Cola's
ability to distinguish itself as a quality provider.PlaceCoca cola
is the worlds most favourite brand and is available all over the
world. Selling in mostly everywhere in the world, you can find all
the favourite different brands of Coca Cola in every big chain
super market and in most little shops like corner shops.PriceThe
long-term pricing strategy of Coca-Cola can be best described as
value oriented. Despite being a leader in its industry, its fierce
rivalry with Pepsi has forced Coca-Cola to maintain affordable
price points to appeal to its vast middle class market. The company
was criticized by shareholders and analysts in 2011 for maintaining
relatively low price points in response to economic recession in
the United States (Insight Analysis, 2013). While this point
emphasizes the risks to any company of adopting a price-driven
strategy, Coca-Cola's strong global brand allows for brief periods
of price drops.PromotionCoca-Cola invests billions of dollars a
year in advertising and promotions around the world to maintain its
position of industry leadership against rival Pepsi. Pepsi
increased its TV ad budget by 30 percent in 2011 when it fell
behind Diet Coke. Coca-Cola spends a good portion of its ad budget
on television advertising. It has used polar bear characters and a
message of nostalgia and tradition as part of its branding over
time. Magazine ads, online and social media have also been used as
media for Coca-Cola marketing. Sales promotions at the store are
used to drive revenue during slow periods.
e. Target MarketsCoca Cola Company desires to satisfy the need
ofall different kinds of people.All consumers have drinks where
their target is different, like age group, ethic groups, sexes,
lifestyles, etc. Coca Cola hasmany variousbrands and are targeted
to different markets. The company has more than 400 different
products line(Products, 2014)The following table shows target
market for some of the strongest products of the Coca-Cola
Company:
II. Market Orientation: P1.2
a. Marketing OrientationA market orientated company is one that
organizes its activities, products and services around the wants
and needs of its customers. By contrast, a product-orientated firm
has its primary focus on its product and on the skills, knowledge
and systems that support that product. Coca-Cola follow market
(customer) oriented marketing, in doing this Coca-Cola conduct
marketing research to find out their consumer interests and
desires, in finding this they make amends to the production of
their product depending on the results. (The Times 100, n.d)
b. Benefits of Marketing OrientationCompanies with a marketing
orientation give the foremost priority to keep the consumers happy
leading to more benefits for the company as the consumers buy
company products repeatedly (Kokemuller, 2007). Some of the
benefits include;- More Focused ProductionBy making customer needs
a primary focus, companies will more likely develop products that
match up with the needs of the customers. For example: with the
rise of health concerns, Coca-Cola produced Coke Zero and Diet Coke
specially designed for health and Diet concerned population.-
Concentrated StrategyBy adopting the marketing concept, companies
have all functions aligned with the strategic vision of meeting the
needs of customers. This helps define the role of employees more
clearly. For example: Coca-Colas mission statements itself also
convey the message that their priority is consumers. - Marketing
AdvantagesWhen companies have a good understanding of what the
market needs or wants, they have better ability to market
effectively to them. For example: Coca-Cola Companys slogans and
ads are based on the latest trends. - Long-Term
ProfitabilityConsistently understanding and delivering what the
marketplace wants leads to long-term profitability. Companies can
turn one-time buyers into repeat customers, with an ultimate goal
of developing many loyal customers. For example: because of the
needful and quality product many people choose products of
Coca-Cola over others resulting more profitability for the
companyc. Costs of Marketing OrientationIn several ways a company's
approach to market orientation can hurt, rather than help, its
mission (McQuerrey, 1994) .- Risk of Underestimating the MarketA
successful approach to market orientation involves a systematic
approach to researching customer behavior. Missing the mark in this
process creates a system where a company is using ineffective data
in its approach to reaching out to customers. For example: when
first the Coca-Cola Company produced Coke Zero (a sugar free
version of Coke) they named the product as Light Coke and targeted
it towards the male population who want to be fit. Because of the
name and packaging males considered it too girly a product for men.
So again the company launched it with the Coke Zero. This could be
a result of ineffective data.- Risk of Underestimating the
CustomerA global marketplace has increased competitiveness across
all consumer brands. Companies that have established an approach to
market orientation but fail to update it as needed run the risk of
alienating their customers.- Challenges of Quickly Responding to
Market ChangesMarkets that rapidly change have just as great an
impact on a company's market orientation strategy as educated
consumers. New players entering or exiting the market, advances to
existing products and an ever-changing cost of raw materials,
products and services all impact market orientation. Following an
established market orientation and failing to take new external
factors into consideration can put a company at a
disadvantage.Judgment With the help of the mentioned examples it
can be concluded that the Coca-Cola Company get more benefits than
costs from the chosen marketing concept. As Coca-Cola is well
established already they get higher revenues, and because of this
they can invest as much as needed to do flawless and effective
researches and to understand their consumers.
III. Extended Marketing Mix: P3.5
a. Extended Marketing MixBooms and Bitner included three
additional 'Ps' to accommodate trends towards a service or
knowledge based economy(Leadley, P. & Forsyth, P., 2004). They
are:PeopleProcessPhysical EvidencePeopleAll people who directly or
indirectly influence the perceived value of the product or service,
including knowledge workers, employees, management and
consumersProcessThe process of the product is essential in
marketing. This determines the capability of the product to supply
the demand of the consumers.Coca-Cola's distribution process is a
key element of its offering. The company's products are available
in cans and bottles in supermarkets and other retail stores around
the world. Additionally, the company provides supplies for fountain
drinks in many restaurants.Physical EvidencePhysical appearance is
the first distinction of a product. A product could be easily
recognized by its appearance. For example: Coca-Colas logo is
sufficient for identifying its products from others.
b. How the additional Marketing mix Assist the Company
People: the experience and skill of companys people,
i.e.workers, employees, managementhelp to provide the best to their
consumers. How the companys people serve to consumers have great
influence in the target market. Process: a smooth process helps the
marketer to employ relevant and supportive services to their
customer in order to give them more satisfaction for their
patronage. As theseprocesses when effectively employed will go a
long way to create brand loyalty and also a long lasting
relationship with the customer.
Physical Evidence: it is also another influential marketing tool
as consumers are likely to be influenced by what they see and a
more conducive atmosphere to attract more customers. When the
consumers confidence is built for the company it helps to create
brand loyalty and also a long lasting relationship with the
customer.
All of these elements are very much important to the marketer
because its one of the most important keys use to open and close
and adjust doors of opportunities in the target market.
IV. Types of Marketing: P4.2
a. Business to Business (B2B) Marketing
Business to Business marketing: when one business sells to
another business rather than to an end user(Lake, 2014). For
example: When Coca-Cola Company sells its products to MacDonalds,
it is business to business marketing.
b. Business to Consumer (B2C) Marketing
Business or transactions conducted directly between a company
and consumers who are the end-users of its products or
services(Lake, 2014). For example: when Coca-Cola Company sells its
products through vending machines directly to consumers.
c. How B2B Differ from B2CWhen marketing B2B, there is little to
no personal emotion involved in the purchasing decision. The
selling company wants to focus on understanding the organizational
buyers and how they operate within the confines of their
organization's procedures. The B2B market has a thirst for
knowledge and they are information seekers. Be more in-depth with
your marketing materials. Your most effective marketing message
will focus on how your product or service saves them time, money
and resources. Your business-to-business market is more interested
in the logic behind your product. They will want to hear more about
the features and how it will help them in saving time, money or
resources.Whereas, B2C marketing purchase depend more on emotion.
They are more interested in the benefit of the product. They will
want to hear more about how their product or service helps them and
what benefits it brings to them personally.
d. JustificationCoca-Cola uses the both B2B and B2C marketing.It
has a wide B2B market as it provides branded beverages throughout
the world. For example: In all most all countries the known
restaurants provide Coca-Cola products. The B2C market of beverages
of Coca-Cola Company is also very wide, as everywhere products of
Coca-Cola are available through vending machines, retail shops
etc.
V. International and Domestic Marketing compared: P4.3
a. International and Domestic MarketingInternational
MarketingWhen there are no boundaries for a company and it targets
customers overseas or in another country, it is said to be engaged
in international marketing. Example: Coca-Cola Company is an
internationally marketing organization as it operates its business
all over the world.Domestic MarketingThe marketing strategies that
are employed to attract and influence customers within the
political boundaries of a country are known as domestic marketing.
For example: local companies like, Lilly Enterprises are domestic
marketing as they do business in the local country only.b. How
International Marketing Differ from Domestic Marketing (with
examples from the company)Difference between International and
Domestic MarketingInternational MarketingDomestic Marketing
i. Social and Cultural Aspects
Trade should be done taking diverse into consideration. Even
things like color combination can be affect the trade.Culture does
not affect in domestic marketing.
ii. Government and Political AspectsExchange takes place under
government rules and regulations. There is high degree of
government interference.International trade is characteristics by
tariff and non-tariff barriersGovernment interference is zero or
minimum only in case of essential commodities government
interferesDomestic marketing has no such restrictions.
iii. Economic AspectsIt involves exchange on the basis of
different currencies.Letter of credit is normally as mode of
payment.It involves exchange in the basis of same currenciesCash,
Cheques, DDs are the most common.
iv. Financial AspectsIt involves exchange on the basis of
different currencies.Local taxes: They are imposed on imported
goods to make them on par or costlier than local goodsIt involves
exchange in the basis of same currencies.Local taxes: relatively
low or no tax for local goods
v. Data (Statistical) AspectsInternational Marketing is subject
to complex documentationDomestic trade does not involve much of
documentation.
Stakeholders
More risk to the stakeholders because of high completion
levelLess competition
JustificationAs Coca-Cola Company is an international marketing
organization they have to carter always to diverse and
multicultural markets and in different areas their marketing
strategy should be different as the market is socially different.To
implement their strategies in the branches all over the world they
have to face strong influences from the government rules and
regulations. There is high degree of government interference.As
political stability is different in different areas of the world
political risks are high for the companyAs its international they
have to use an international currency varying levels of
development.It is difficult in many rural areas and developing
countries to obtain the relevant data for market researching. And
also it is comparatively expensive to store companys data available
for rural areas and many developing countries.Internationally the
company can get differing finance systems and from different
regulatory bodiesStakeholders always have to keep an eye on the
competitors because internationally the company has to face much
stronger competitions. Like, for Coca-Cola Pepsi is giving a hard
competence.
ConclusionWith the help of PEST, SWOT & other analysis, the
internal & external environment of Coca-Cola Company has been
analyzed. The strength of the companys system allows infinite
growth in the global market. They have the resources available for
this opportunity but they must develop marketing strategies that
have local appeal as this is essential for their success. Through
their brand reputation and vast marketing experience, Coca-Cola
Company has the ability to extend the recognition of their brand
and logo. However it would be best to control brand equity and
financial resources, to accelerate global market penetration with a
view to long term profits. Company must continue to evolve its
market share. The effectiveness of TV ads is declining due to media
fragmentation. So it is advisable to divert money previously spent
on TV towards more experimental activities like setting up of
lounges in teen malls and offer exclusive music videos, video
games.With the threat of political and economic instability, it
must consider each countrys unique cultural, political, legal and
economic environment to extend its market share.With the threat of
increasing health consciousness among consumers, it is advisable
for Coke to further resource their fruit drink product lines as
this market sector is growing rapidly. In laying out an appropriate
marketing mix, Coke must consider product, distribution, promotion
& price, therefore developing a marketing mix for each customer
group.In the beverage industry if Coca-Cola can diversify and
expand on their products, globally they would gain a huger market
share and a greater competitive advantage that would allow for
greater long-term profits and increase dominations in the
future.
-----------------------------------------------References:
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https://www.globalintelligence.com/insights-analysis/marketing
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