Coca cola marketing plan
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Coca cola marketing plan Coca cola marketing plan Document Transcript

  • oco Cola Marketing PlanSummary: Marketing Details for Coco Cola.Marketing Plan - Coca ColaExecutive SummaryThe Coca-Cola Company was first established in 1886 by Dr John Styth Pemberton. Today, thecompany is the worlds leading manufacturer in the beverage industry, operating globally inmore than 200 countries with its head office located in Atlanta, USA. It produces more than 300beverage brands and over 1.06 billion drinks are consumed per day around the world.Mission StatementThe Coca-Cola Companys mission statement is:`Remind Coca-Cola is the read thing but their motto now has changed to `To benefit and refresheveryone who is touched by our business.Also Coca-Cola would hope to provide the best quality drink for everyone, all the employeesworking for them being at their top and fulliest.MarketingMarketing is the role used by the business to plan, price, promote and distributeproducts/services to individuals. The Coca-Cola Companys marketing includes:(i) Situational analysis(ii) Target Market(iii) Objectives/Goals(iv) Marketing strategies and the marketing mix(v) Monitoring & Controlling(i) Situational AnalysisThe Coca-Cola Company has been operating for over a century and is highly successful. It iscurrently in the renewal level of the post-maturity stage in the business life cycle. This is shownin Fig. (10).Sales ($)
  • Fig. (10) The Coca-Cola Companys business life cycleSWOT AnalysisStrengths (S) Weaknesses (W)· Has been operating successfullyfor over a century.· Is known world-wide and operates in morethan 200 countries.· Coca-Cola has a large share of the cola segment - holding approximately 85per cent.· The Coca-Cola Company is the mostrecognised trademark in the world. · The contractThe Coca-Cola Company has with its bottlers is under constant negotiations.Opportunities (O) Threats (T)· Has significant growth opportunities.· Has sufficient capital to expand.· Has the potential toinnovate and differentiate the companys products to sustain a competitive advantage.· Maymerge with other global businesses to eliminate competitors.· Capable of expanding into othermarkets other than the soft drink market. · Has many major global competitors with its main onebeing PepsiCo.· Coca-Cola can be substituted by other soft drink products made by itscompetitors. These competitors may develop marketing strategies to eliminate The Coca-ColaCompany.· There may be an economic downturn in the business cycle.(ii) Target MarketThe companys beverages are generally for all consumers. However, there are some brands,which target specific consumers.For example, Coca-Colas diet soft drinks are targeted at consumers who are older in age,between the years of 25 and 39. PowerAde sports water target those who are fit, healthy and dosport. Winnie the Pooh sipper cap Juice Drink target children between the ages 5-12.This type of market approach refers to market segmentation.The Coca-Cola Company when advertising, has a primary target market of those who are 13-24,and a secondary market of 10-39.(iii) Objectives/GoalsCoca-Cola main objectives are to supply everyone their favourite drink and to satisfy theconsumer needs and wants. Coca-Cola second main objectives are to provide profit to theshareholders and increase the market share.(iv) Marketing strategies and marketing mixMarketing mix:Product
  • The Coca-Cola Companys products include beverage concentrates and syrups, with the mainproduct being finished beverages.The business has over 300 brands of beverages around the world with the main ones being Coke,Fanta, Lift, Sprite, Frutopia 100% Fruit Juice, and PowerAde.The Coca-Cola Company packages its beverages into plastic bottles of sizes 2 litres, 1.25 litres,600mL and 300mL. These are also available in aluminium cans of 375mL.Coca-Cola is the most well known trademark, recognised by 94 per cent of the worldspopulation. The business is very successful and holds a very good reputation.Marketing strategies for productThe Coca-Cola Company uses marketing strategies to differentiate its product from itscompetitors to gain a competitive advantage. These are listed in the table below.Marketing strategy Explanation of marketing strategyExtension/product differentiation In 2002, the Coca-Cola Company extended the products ofCoke and developed the new products Coke with lemon and Vanilla Coke. This extension:·Responded to consumer demands.· Generated sales and profit.Innovation In 2001, Coca-Cola had innovated and developed the introduction of purchasing thecompanys products from vending machines via SMS messaging.In 2002, the company innovatedand came up with a new packaging idea, the Fridge Pack. The Fridge Pack consists of canspacked 2-by-6. This innovation has:· Increased consumer awareness and preference.· Increasedrate of consumption and profitability.PriceThe prices of Coca-Colas products vary according to the brand and the size. The prices of themain products are shown below.Product Size Prices (approx. not on sale prices)Coke, Fanta, Lift, SpriteCoke, Fanta, Lift, SpriteCoke, Fanta, Lift, SpriteCoke, Fanta, Lift,SpriteCoca-Cola soft drinksCoca-Cola soft drinksPowerAde 2L bottle1.25L bottle600mLbottle300mL bottle375 x 30 cans375 x 18 cans --- $2.57$1.35$2.10 -$2.30$1.30$17.87$12.98$2.80Pricing Methods/Pricing strategiesThe Coca-Cola Companys products are sold in retail stores, convenient stores, petrol stationsetc. The pricing methods/strategies are set by those the company sells to. Petrol stations andconvenient stores usually sell Coca-Cola products at a fixed price.
  • However, retail outlet uses pricing methods and pricing strategies when selling Coca-Colaproducts.Pricing methodsPricing method Explanation of pricing methodCompetition-based pricing Coca-Cola products are usually priced below, above or equal to itscompetitors prices.For example, during Easter (2003) sale periods (Coca-Cola vs. Pepsi):Coca-Cola soft drinks 2L - $1.68Pepsi soft drinks 2L - $1.87Coca-Cola soft drinks 375 x 18 -$9.98Pepsi soft drinks 375 x 24 - $9.98Discount price Coca-Cola products are often marked down during sale periods and specialoccasions. This will:· Generate sales· Increase profitsPricing strategiesPricing strategy Explanation of pricing strategyMeet-the-competition pricing The Coca-Cola products pricing are set around the same level asits competitors.Psychological pricing Most of the Coca-Cola products use this method of pricing. For example,for a pack of 375mL x 18 cans of Coca-Cola soft drinks it is priced at $9.98 instead of$10.00.This pricing strategy makes consumers perceive the products to be cheaper.Promotional strategiesThe business uses a range of promotional activities, shown in the table below.Promotional strategy Explanation of promotional strategyAdvertising The Coca-Cola Company uses advertising as its main source of increasing consumerawareness. It mainly uses the television. There are many television advertisements on Coca-Colaproducts. This source allows the companys products to reach a large audience.The latesttelevision advertisement for Coca-Cola soft drinks was the `You know you want itadvertisement. One of the older one are ` If you drink it, you get better of life The company alsouses the radio as another source of advertisement. This is a cheaper source of approach comparedto the television.Recently, the company benefited from its involvement in the worlds celebratedgames such as the Olympics and the FIFA World Cup. Where millions were watching thesegames, the business had substantial advertising and promotions of the companys brands.The costof advertising over the past 3 years is shown in Fig. (11).Cost ($ mil) YearFig. (11) The Coca-Cola Companys advertising costs
  • Personal selling Every year, The Coca-Cola Company has a highly trained sales team, which actsas a representative of the company to the retailers. This strategy helps to maintain service andproduct loyalty. It has been demonstrated by the business to be highly effective.Publicity In February 2003, Vanilla Coke was released to the media as a news brief outlining thehuge profit achieved by the business (from the Sydney Morning Herald 14th February 2003).This helped The Coca-Cola Company to strengthen the image of the businesss products.Place of distributionThe Coca-Cola Company sells its products to bottling and canning operations, distributors,fountain wholesalers and some fountain retailers. These then distributes them to retail outlets,milk bar and corner stores, restaurants, petrol stations and newsagents. This is shown in Fig.(12).The Coca-Cola CompanyWholesalers/distributorsRetail/corner storesRestaurants, petrol stationsConsumersFig. (12) The Coca-Cola Companys distribution channelPlace strategiesPlace strategies Explanation of place strategyIndirect distribution The Coca-Cola Company uses intermediaries in its distribution. That is, thecompany does not sell its products directly to its consumers.Intensive distribution The Coca-Cola Company uses the intensive distribution strategy. Thebusinesss products are sold in almost every outlet including: · retail outlets · small shops ·restaurants · petrol stations · newsagents · schools · sports and entertainment venues· fromvending machines(v) Monitoring & ControllingThis section contains 1,276 words(approx. 5 pages at 300 words per page)