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Douglas bowman reviewed1

  1. 1. RUNNING HEAD: MARKETING INNOVATION AND DESIGN Marketing Innovation and Design 1|Page
  2. 2. RUNNING HEAD: MARKETING INNOVATION AND DESIGN Contents Contents..................................................................................................................................2 Introduction............................................................................................................................4 Overview.................................................................................................................................5 SALES OVERVIEW................................................................................................................................5 MARKET SHARE.......................................................................................................................6 Market share by area:........................................................................................................................6 Environmental Analysis.........................................................................................................10 Competition......................................................................................................................................10 Customers........................................................................................................................................10 Market..............................................................................................................................................10 Environmental analysis.....................................................................................................................10 PEST analysis.........................................................................................................................10 Political factor..................................................................................................................................11 Economic factor................................................................................................................................11 Social factor......................................................................................................................................12 Value proposition .................................................................................................................12 MARKETING MIX:..................................................................................................................14 Product.............................................................................................................................................15 Branding...........................................................................................................................................15 Packaging..........................................................................................................................................16 Price.................................................................................................................................................16 Pricing Strategies And Tactics................................................................................................17 Pricing Methods................................................................................................................................17 Promotion........................................................................................................................................18 Place.................................................................................................................................................19 2|Page
  3. 3. RUNNING HEAD: MARKETING INNOVATION AND DESIGN Brand Image .........................................................................................................................21 It has exclusive structure, sign, representation, words, or a blend of these, working on establishing an image for Coka Cola, which recognizes a product and makes it different from other players in the beverage industry. However, while it was establishing a brand, Coka Cola was able to set up its logo and its websites to attract its target market. It was also able to create the feel of being refreshed after consumption of the Coke beverage. .........................21 Conclusions and Recommendations.......................................................................................22 Bibliography..........................................................................................................................24 3|Page
  4. 4. RUNNING HEAD: MARKETING INNOVATION AND DESIGN Introduction In most cases, creativity and innovation are at the heart of an organization changing plans. Therefore, creativity is most of the time not in existence on its own. It is the antecedent of innovation (Martins and Martins, 2002). However, majority of organization must have it in mind to be creative before they are tagged as innovative. Thus, creativity and innovation go hand in hand, hence the existence of a relationship between them (Amabile, 1997). In addition, (Martins and Martins, 2002) added that innovation is an attribute that makes an organization stand out. Garcia (N.D.) also added that an innovative company is also a creative one as it makes innovation and creativity its reason for its existence. Thus, as a definition, creativity is the incorporation of these actions that make them creative while innovation has a longer time frame. Nonetheless, innovation is what keeps an organization competitive in an industry (Amabile, 1997). As it is known to be one of the most known brands in the world, Coka Cola happened to have been one with a lot of creativity which has lead to a lot of innovational products. Furthermore, we chose this brand because we are consumers of its products most especially its refreshing beverages. 4|Page
  5. 5. RUNNING HEAD: MARKETING INNOVATION AND DESIGN Overview For more than 115 years, Coka-Cola has created a special moment of pleasure for hundreds of millions of people every day. Coka-Cola, the product that has given the world its best-known taste was born in Atlanta, Georgia, on May 8, 1886. Coka-Cola Company is the world’s leading manufacturer, marketer and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400 beverage brands. It sells beverage concentrates and syrups to bottling and canning operators, distributors, fountain retailers and fountain wholesalers. SALES OVERVIEW Source: http://simplefinanz.com/Coka Cola-financials-q3-2013 The above chart shows the income statement of Coka Cola over 3 years. However, with this comparison, one is able to see the trends. As seen in the charts, operating expenses has been fixed over the years since third quarter of 2011 till date. Cost of goods sold (COGS) is seen as increasing a little over the years which has resulted in a little fall in sales figure. In addition, net income has also remained the same since second quarter in 2013 unlike that of first quarter in 2013. 5|Page
  6. 6. RUNNING HEAD: MARKETING INNOVATION AND DESIGN MARKET SHARE The carbonated soft drinks are the largest growth segment within the nonalcoholic ready-to-drink beverage category measured by volume. In this industry, Coka Cola as a brand happen to have about 42% world market share. This has reduced from the previous 50% in recent years because of the reduction in the consumption of coke due to health concerns especially in northern America. Coka Cola is still the best selling soda brand even with this reduction (Seeking Alpha, 2013). Source:http://web.blogads.com/blog/2012/04/17/coke-crushes-pepsi-in-most-social-mediametrics/ The above chart is showing Coka Cola’s market share in 2012 and 2009 as compare to other brands. As seen from the charts, Dr. Pepper has been gaining market share from its competitors which indicates its experiencing increasing sales (Faber, 2012). Market share by area: Coka Cola is the world-renowned soft drink and the company is currently operating throughout the world. The world wide total is about 17.8 billion. 6|Page
  7. 7. RUNNING HEAD: MARKETING INNOVATION AND DESIGN The operation review according to the segments is as follows. Source: Euromonitor international(2012) The illustration above shows that Coka Cola has the largest market shares in Asia, Australia, Eastern Europe, Latin America, Middle East and Africa, and Western Europe. However, due to the consciousness in health status of the North Americans, Coka Cola has a little of the total market share in that region. Strategy Following are the main points covered by the business/marketing strategy of the Coka Cola. Marketing means getting the accurate product to the accurate place, at the accurate time, at the accurate price and with the most appropriate publicity activity. Coka Cola has always been able to make the most suitable advertising mix. Since its inception, Coka Cola has made its deals using a universal scheme and planning based on three great rules: Acceptability Through efficient advertising, making sure that Coka Cola brands are an essential part of customer’s routine lives, making Coka Cola the most wanted soft drink all across. 7|Page
  8. 8. RUNNING HEAD: MARKETING INNOVATION AND DESIGN Affordability Coka Cola makes sure that it offers the reasonable price for its products so that everyone can afford it. Availability Ensuring that Coka Cola brands are obtainable anywhere people want entertainment, a universal diffusion of the marketplace. Coka Cola has made a massive and well-managed world distribution network which guarantees the rifeness of its goods. (Rifeness is the capability to be available everywhere at same time.) Its approach is based on the trust that Coka Cola must try to satisfy the taste of everyone in the world all 5.6 billion of them. The Company manages a global franchise system providing syrups and keeps look to over 1,200 bottling operations, (there are more than 350 franchises in the US only) which hence contains local corporations and traders in the 200 nation states in which Coka Cola is being provided. The company manages to have nice relationships with all its bottler distributers across the world. The company has a huge bottler provider network which is one of the basic and essential parts of the business and this need to be maintained. The company makes sure that its bottle operation is being organized well and it provides bottles all across the world so that everyone can enjoy the soft drink whenever they want. There are almost more than 6 million people who are loyal customers of Coka Cola and the company’s basic strategy is to keep them all engaged in the products of Coka Cola by their best marketing and the quality of the product. 8|Page
  9. 9. RUNNING HEAD: MARKETING INNOVATION AND DESIGN The above illustration is known as the ANSOFF matrix used to identify the current strategy of organizations be it product oriented or service oriented into four courses of action. ANSOFF matrix has classified these products/services in the aspects of; market development, market penetration, product development, and diversification. However, Coka Cola as a brand as at present belongs to the product development aspect. Moreover, according to the ANSOFF matrix, a product in the ‘product development’ grid is in the stage where it is developing new products for existing markets. In addition, it does this by investing in and revising its research and development processes and activities. Such instances can be illustrated using examples from our experience as regular consumers. It has been noted that over the years the Coka Cola brand has changed its bottle shape, size and colour as a way of ‘creating’ that refreshing feeling to its customers as a result of being ‘innovative’. Nevertheless, we can see that the Coka Cola brand is indeed ‘innovative’ and ‘creative’ at the same time. On the other hand, the ANSOFF matrix also illustrates that, if a company is creating new businesses, making products for new markets or buying subsidiaries it can also be placed in the ‘diversification’ grid. However, we can say in addition that Coka Cola is also in the diversification grid because it has manufactured water for those who do not consume its soda, and also produces Pepsi, Fanta, and Sprite and so on for those who like to have a different taste and feel of the Coka Cola brand. Furthermore, it has introduced its milk protein drink for consumers who are conscious about their health. 9|Page
  10. 10. RUNNING HEAD: MARKETING INNOVATION AND DESIGN Environmental Analysis Competition Food and beverage industry is the most competitive industry in the world, according to a statistics its value is increasing by 4.6 % per year and is expected to reach $ 1.347 Billion by 2017.It has one of the most valued brands in the world. Coka Cola, Pepsi, Starbucks, Nestle and Sprite are the top 5 most valued brands in the world. Industry consumption volumes increased with a CAGR of 2.4% between 2006 and 2010, to reach a total of 717,040.5 million liters in 2011. Customers Coka Cola has one of the most diversified customers in the world. Its target market includes young generation, adults and middle aged people. It has some disadvantages, as it not advisable for children to use them. Market Food and beverage industry is a matured and old industry, and Coka Cola is market leader in this industry. Its outlook is changing day by day due to technological advancements in the past and present. If we talk about Coka Cola, It is using the technology to great effect for its financial and marketing benefits. Environmental analysis All businesses operate under two broad environments, namely the external environment where entrepreneurs have no control over it, and the immediate industry and competitive environment. Coka Cola's strategy and operation are greatly affected by these environmental factors. PEST analysis The external environmental forces exist in every part of Coka Cola's business, and exert influence on Coka Cola's business strategy and operation. No one business is capable of being 10 | P a g e
  11. 11. RUNNING HEAD: MARKETING INNOVATION AND DESIGN "immune" of such external forces. Having stated all these, these factors influencing the environment in which Coka Cola operates in will be explained in the following paragraphs. Political factor Political factors such as change in legislative law by the where Coka Cola operates in authority affects the creativity and innovation of Coka Cola and thus its strategy. More specifically, laws regarding the production of non-alcoholic beverages which have to pass through thorough checks before they can be allowed to be sold to consumers are also a political factor affecting the strategy of Coka Cola. These processes usually take time which interrupts and slows down processes that causes delays in the process of trying to be creative and innovative. Furthermore, as a global brand, Coka Cola will experience hiccups while trying to revise its strategies and processes. This is usually also as a result of rules regarding cross boarder trading in the international markets. At times, there might be government change which automatically means legislation change as a result. Also, the issue of relocating capital affects the company’s way of strategizing. Some countries require foreign investors to leave a large percentage of their profile in the same country and disburse only the capital this might be one of the political issues faced by Coka Cola which. Economic factor As mentioned earlier in this text, the sales volume and market share of Coka Cola has reduced. This is because, of the just experienced economic slowdown which made expenditure spending low. Additionally, consumers started to cut down on unnecessary spending. Nonetheless, this affects the strategic plans and actions of the company. Coka Cola will have to revise its strategies to maintain its markets base. Apart from the above mentioned, the changing and variation in weather in different parts of the world where Coka Cola operates affects the way it plans its strategy. That is, for places that are usually cold most time of a year, consumers tend to consume hot beverages to keep them warm instead of the Coka Cola brand which is a problem. The company will in these places have to produce such beverages if they want their consumers retained during this season which is so much of a worry for the company. 11 | P a g e
  12. 12. RUNNING HEAD: MARKETING INNOVATION AND DESIGN Social factor Social factors such as changes in trends, purchasing power, life styles can affect the way in which Coka Cola intends to operate. Nowadays, Majority of the people in the world are most concerned about their health. As a result, they consume the diet coke or water by Coka Cola. The reducing demand of its soda drink has reduced its sales. Value proposition Value proposition is the second name of the consumer’s choice and desires. The company must be aware of all the needs and requirements of its consumer. The company provides different offers to its customers to retain them. However, value proposition of Coka Cola can be explained in details using Michael PORTER’S 5 forces model in the aspects of; buyer’s bargaining power, supplier’s bargaining power, threats to new entrants, substitute products, and rivalry amongst established companies. Suppliers' Bargaining Power: Suppliers' bargaining power in this beverage industry is strong. For example, the soft drink ingredient producer - NutraSweet who specializes in producing concentrate sweeteners. Since there is a rising concern in health and safety issues in the soft drink drinking within the consumer market, the healthier sweetener, aspartame, that NutraSweet markets allowed it to have a high impact and input on costs of each bottler's product costs. Since NutraSweet was the only marketer that marketed the standard aspartame the costs of using NutraSweet's aspartame is relatively high compare to other substitutes such as sugar. Buyers' Bargaining Power: The Buyers of the soft drink industry are the concentrate bottlers. Bottlers of the soft drink industry have a low bargaining power since they form the largest base (the greatest number) of all the elements of Porter's five forces. Most of the bottlers are Coka Cola owned before 1980, and almost all of them are under 12 | P a g e
  13. 13. RUNNING HEAD: MARKETING INNOVATION AND DESIGN some sort of contractual agreement stating that bottlers must accommodate the programs set up by the concentrate producers' for the products that they have franchised. High fees are required of the bottlers are such as high start-up costs ranging from $100,000 to several million dollars, paying for two-third of promotional costs, while costs were typically split fifty/fifty for doing consumer promotion and trade. It is also hard for bottlers to identify their own brand identity since their products are made of concentrates and the names that they use are the names of the concentrate manufacturer. Coka Cola, hence discouraging their own product differentiation. Rivalry among Competing Sellers: There is a strong barrier setup by the traditional concentrate producers. For new rivalry to enter into the market is extremely difficult since the two soft drink giants such as Coka Cola and Pepsi-Cola have already created a soft drink tradition and branding. Also since the soft drink giants have already created their bottler network and also owned majority of them, it is even harder for new entrants to be gain an absolute cost and competitive advantage. Governmental policies also create obstacles to the new entrants in the Coka Cola industry since the word "Coke" is strictly mean Coka Cola. Current rivalry within the soft drink industry is mainly evolved around the two giants who are Coka Cola and PepsiCo. The two giants owned most of the spacing for the vending machines, developed most the flavours for the popular products within the market, and occupied most of the soft drink market shares within the industry. Substitute Products: Threats of substitutes are high since soft drink industry is a highly unstable industry. Switching costs for the consumers are extremely low since the pricing of soft drinks is cheap in some areas and consumer's taste is ever changing. There is no trade off for the consumers to switch to other products so it is easy for consumers to change their loyalties. One example would be the Pepsi Challenge rose by PepsiCo over the states. The challenged had blinded people over the states tasted different brands of soft drinks and found out that majority of them liked Pepsi over Coke, thus PepsiCo's Pepsi-Cola was able to gain market share and attracted a larger market share. 13 | P a g e
  14. 14. RUNNING HEAD: MARKETING INNOVATION AND DESIGN Potential New Entrants: The soft drink industry is an extremely difficult industry to get into. The existing soft drink industry is already dominated by experienced dominant players with over century-long experience; new entrants would have to be truly unique to be able to gain an absolute competitive advantage within this industry. If their products are unique, they would not have to worry about the fear of product substitution. Once the new entrants have gained an absolute advantage within the industry, they would have to deal with the suppliers who may have a strong bargaining power over pricing on the ingredients they need. Apart from that, they would need buyers, which are bottlers in this case. Once they have a base of bottlers with them, then only they have a chance of success in this industry. More so, as explained above, the supplier’s power appears to be HIGH. Their sole supplier NutraSweet is Coka Cola’s main supplier of the main sweetener used in making its coke drink. For this reason, NutraSweet can at any time decide to rise prices which Coka Cola has to succumb to. Additionally, buyer’s bargaining power is HIGH as there are varieties to choose from if they are not satisfied with Coka Cola and switching cost is almost zero. Rivalry amongst competitive sellers in the same industry puts Coka Cola at the forefront because it is the known most successful competitive brand in its industry presently before PEPSI which means HIGHLY competitive brand. Furthermore, a lot of substitute products are in existence which places Coka Cola in the low position. Finally, the threat of new entrants is high because there are a lot to be considered before competing in a HIGHLY competitive market like the Coka Cola brand. This places Coka Cola brand in a high level. Hence, making the brand to be seen as a highly valuable brand. MARKETING MIX: The marketing mix refers to the combination of the four factors that make up the core of a business s marketing strategy. 14 | P a g e
  15. 15. RUNNING HEAD: MARKETING INNOVATION AND DESIGN 1. Product 2. Price 3. Promotion 4. Place In this step of the marketing planning process, marketing mix must be designed to satisfy the wants of target markets and achieve the marketing objectives. The most successful businesses have continually monitored and changed their marketing mix due to respective internal and external factors and have monitored the external business environment in order to maximise their marketing mix components. Product Many Products are physical objects that you can own and take home. But the word product means much more than just physical goods. In marketing, product also refers to services, such as holidays or a movie, where you enjoy the benefits without owning the result of the service. Businesses must think about products on three different levels, which are the core product, the actual product and the augmented product. The core product is what the consumer is actually buying and the benefits it gives. Coka Cola customers are buying a wide range of soft drinks. The actual product is the parts and features, which deliver the core product. Consumers will buy the coke product because of the high standards and high quality of the Coka Cola products. The augmented product is the extra consumer benefits and services provided to customers. Since soft drinks are a consumable good, the augmented level is very limited. But Coka Cola do offer a help line and complaint phone service for customers who are not satisfied with the product or wish to give feedback on the products. Branding It is often hard to say exactly why we buy one company’s product over another. Over the time Coka Cola has spent millions of dollars developing and promoting their brand name, 15 | P a g e
  16. 16. RUNNING HEAD: MARKETING INNOVATION AND DESIGN resulting in worldwide recognition. 'Coka Cola' is the most recognised trademark, recognised by 94% of the world's population and is the most widely recognised word after "OK". There are a number of branding strategies: • Generic brand strategy • Individual brand strategy • Family brand strategy • Manufacturer’s brand strategy • Private brand strategy • Hybrid brand strategy. Coka Cola utilizes the individual brand strategy as Coka Cola’s major products are given their own brand names e.g. Fanta, Sprite, Coka Cola etc although they may be presented as different lines they operate under the name of Coka Cola. Packaging Packaging, which is not as highly perceived by businesses, is still an important factor to examine in the marketing mix. Packaging protects the product during transportation, while it sits in the shelf and during use by consumers; it promotes the product and distinguishes it from the competition. Packaging can allow the business to design promotional schemes, which can generate extra revenue and advertisements. Coka Cola has benefited from packaging the product with incentives and endorsements on the labelling as a promotional strategy to increase its volume of sales and revenue. Price Price is a very important part of the marketing mix as it can affect both the supply and demand for Coka Cola. The price of Coka Cola’s products is one of the most important factors in a customer’s decision to buy. Price will often be the difference that will push a customer to buy our product over another, as long as most things are fairly similar. For this reason pricing policies need to be designed with consumers and external influences in mind, in order to effectively achieve a stable balance between sales and covering the production costs. Price 16 | P a g e
  17. 17. RUNNING HEAD: MARKETING INNOVATION AND DESIGN strategies are important to Coka Cola because the price determines the amount of sales and profit per unit sold. Businesses have to set a price that is attractive to their customers and provides the business with a good level of profit. Pricing Strategies And Tactics The pricing strategy a business will use will have to focus on achieving the marketing plan’s objectives and support the positioning of the product, and take external factors such as economic conditions and competitors in to account. There are 5 strategies available to business: 1. Market skimming pricing 2. Penetration pricing 3. Loss leaders 4. Price Points 5. Discounts Over the years Coka Cola has used Penetration Pricing as a way of grabbing a foothold in the market and won a market share. Its product penetrated the marketplace. Once customer loyalty is established as seen with Coka Cola it is then able to slowly raise the price of its product. There has been a fierce pricing rivalry between Coka Cola and Pepsi products as each company competes for customer recognition and satisfaction. Till now it appears as if Coke has come up on top, although in order to gain long term profits Coke had to sacrifice short term profits where in some cases it either went under of just broke even, but as seen it has been all for the best. Pricing Methods Good pricing decisions are based on an analysis of what target customers expect to pay, and what they perceive as good quality. If the price is too high, consumers will spend their money on other goods and services. If the price is too low, the firm can lose money and go out of business. Pricing methods include: 1. Cost based Pricing 2. Market based pricing 17 | P a g e
  18. 18. RUNNING HEAD: MARKETING INNOVATION AND DESIGN 3. Competition based Pricing. Over the years Coka Cola has lost ground here in its pricing but has regained its strength as it employed the Competition-based pricing method which allowed it to compete more effectively in the soft drink market. Leader follower pricing occurs when there is one quite powerful business in the market which is thought to be the market leader. The business will tend to have a larger market share, loyal customers and some technological edge, thus the case currently with Coke; it was first the follower but through effective management has now become the leader of the market and is working towards achieving the marketing objectives of the Coka Cola. Promotion In today’s competitive environment, having the right product at the right place in the right place at the right time may still not be enough to be successful. Effective communication with the target market is essential for the success of the product and business. Promotion is the p of the marketing mix designed to inform the marketplace about who you are, how good your product is and where they can buy it. Promotion is also used to persuade the customers to try a new product, or buy more of an old product. The promotional mix is the combination of personal selling, advertising, sales promotion and public relations that it uses in its marketing plan. Above the line promotions refers to mainstream media: Advertising through common media such as television, radio, transport, and billboards and in newspapers and magazines. Because most of the target is most likely to be exposed to media such as television, radio and magazines, Coka Cola has used this as the main form of promotion for extensive range of products. Although advertising is usually very expensive, it is the most effective way of reminding and exposing potential customers to Coka Cola Products. Coka Cola also utilizes below the line promotions such as contests, coupons, and free samples. These activities are effective ways of getting people to try your products. 18 | P a g e
  19. 19. RUNNING HEAD: MARKETING INNOVATION AND DESIGN Place The place P of the marketing mix refers to distribution of the product- the ways of getting the product to the market. The distribution of products starts with the producer and ends with the consumer. One key element of the Place/Distribution aspect is the respective distribution channels that Coka Cola has elected to transport and sells its product. Selecting the most appropriate distribution channel is important, as the choice will determine sales levels and costs. The choice for a distribution channel for any business depends on numerous factors, these include: • How far away the customers are; • The type of product being transported; • The lead times required; • The costs associated with transport; There are four types of distribution strategies that Coka Cola could have chosen from, these are: 1. Intensive 2. Selective 3. Exclusive 4. Direct distribution. It is apparent from the popularity of the Coka Cola’s product on the market that the business in the past used the method of intensive distribution as the product is available at every possible outlet. From supermarkets to service stations to your local corner shop, anywhere you go you will find the Coka Cola products. Physical Distribution Issues Coka Cola needs to consider a number of issues relating to the physical distribution of its soft drink products. The five components of physical distribution are, order processing, warehousing, materials handling, inventory control, transportation. Coka Cola must further try to balance their operations with more efficient distribution channels. 19 | P a g e
  20. 20. RUNNING HEAD: MARKETING INNOVATION AND DESIGN Order Processing- Coka Cola cannot delay their processes for consumer deliveries (i.e. delivery to selling canters), as this is inefficient business functioning and is portrays a flawed image of the product and overall business. Warehousing and inventory control- warehousing of Coka Cola products is necessary. Inventory control is another important aspect of distribution as inventory makes up a large percentage of businesses assets. Materials handling- this deals with physically handling the product and using machinery such as forklifts and conveyor belts. When holding products, then Coka Cola has benefited from purchasing or renting respective machinery. Transportation- transporting Coka Cola products is the one most important components of physical distribution. Electing either to transport the sports drink by air, rail, road or water depends on the market (i.e. global or domestic?) and depends on the associated costs. The most beneficial transportation method for Coka Cola would be ROAD if the product were moved around from storage to the cost canters. Design, Process and Service product Consumer's contentment starts with the service and design of a product. A consumer makes decision about a product regarding its design and services. The several activities and accountability regarding service and design of which Coka Cola is taking care is inclusive of following things. Coka Cola keeps an eye on all the desires and requirement of the consumers in to product and services through proper marketing and operation. It purifies all the products and services through marketing. It keeps introducing new products and services for consumers and makes an appropriate strategy. It provides quality goods and services to attract more consumers. Product and service design has naturally had strategic suggestions for the success and wealth of a corporation. Moreover, it has an influence on foreseen activities. As a result, verdicts in this sector are some of the most basics that managers must make. Corporations become involved in product and service design or re-structuring for various reasons. The 20 | P a g e
  21. 21. RUNNING HEAD: MARKETING INNOVATION AND DESIGN basic strength of the company is to maintain its network of bottlers, its brand name and other strategies. The main powers that initiate structure or re-strutting are market benefits and dangers. The main concentration of product and service design is consumer’s contemplation and happiness. However, it is necessary for designers to understand what the customer needs and design with that in mind. This is one of the major strategies of Coka Cola Marketing is the initial resource of this piece of information. It is necessary to notice that although profit is usually the whole volume and measurement of design efficiency, because the time length between the design period and profit understanding is often sustainable. These usually are inclusive of advancement, time and price, and the consequence product or service quality. Quality is high on the ranking of significances in product and service design, having high quality is much more for a product or service to keep standing and worthy in market for Coka Cola. Coka Cola is famous for its service and design amongst the entire business dealers and big corporations in the world because it has a proper strategy plan. Brand Image It has exclusive structure, sign, representation, words, or a blend of these, working on establishing an image for Coka Cola, which recognizes a product and makes it different from other players in the beverage industry. However, while it was establishing a brand, Coka Cola was able to set up its logo and its websites to attract its target market. It was also able to create the feel of being refreshed after consumption of the Coke beverage. Moreover, organization and management of a sphere of influence of name and brand names provide the reorganization to the idea or image of a specific product or service, which in turn allow the visitors easily innovate the new brand. Branding is also a way to establish a vital and essential corporation profits and wealth, which is a good standing and status. Whether a company has no standing and reputation, or a less than stellar standing and status, standing and status can help vary that. Branding can build an anticipation and belief about the corporation services or goods introduced, and can boost or embolden the 21 | P a g e
  22. 22. RUNNING HEAD: MARKETING INNOVATION AND DESIGN corporation to keep that boost up, or goes beyond them, gathering one better goods and services to the market place. Thus brands help stressed customers in crowded and congested marketplace, by standing for certain advantages and value. Legal name for a brand is a symbol and when it recognizes or stands for a company, it is called a brand. When an opponent brand gives statements to be superior by a very small margin, customers loyalty to a favourite brand counter argue the superiority assertions and statement and tend to devaluate the opponent brand by keeping a less positive and constructive behaviour toward it. Conclusions and Recommendations Conclusion 1: According to our Recommendations 1: As a findings, Coka Cola’s market share recommendation, Coka Cola should be has recently decreased. This is due to ‘creative’ such that no matter the needs of its the changes in social factors. That is, target market, there will always be a Coka most people are now concerned about Cola in every home. their health. Conclusion 2: The company makes Recommendations 2: The company should proper decision when introducing a maintain its decision making that what to new product. These decisions are not launch, when to launch or why to launch at made on quick basis but they take this time. These all things are very necessary very long time on their execution to keep an eye on because all the little things because the company looks at all the are necessary to be under eye. The company positive and negative aspects and then must take care of the taste of its consumers launch’s a new product. They say that so that the attraction stays same always. The the voice and interest of a consumer consumer’s choice should always be in the is the heart of a company’s success top list of the company. and strength. The company should keep the taste and choice of the 22 | P a g e
  23. 23. RUNNING HEAD: MARKETING INNOVATION AND DESIGN consumer in its priorities. Conclusion 3: As mentioned in the Recommendations 3: lastly, Coka Cola in text, Coka Cola after suing the the recent times is strong financially to ANSOFF matrix is in between diversify its products and also venture in to product development and market new products. Diversification here will mean development. This usually happens Coka Cola leaving its comfort zone as this when the company’s product has will help the company gain more market reached the declining stage in the life share in its industry and at the same time cycle. stay competitive. As a conclusion, the above explanation of its positioning indicates that the Coka Cola brand is a leading industry in the beverage industry. Additionally, Coka Cola is always innovative and coming up with new ideas which makes it creative. As a result, attracts more consumers to its brand. The company is always revising its strategies to suit its target from young to old. Even with the economic downturn and other factors that act as obstacles, Coka Cola is still growing but at a slower rate. 23 | P a g e
  24. 24. RUNNING HEAD: MARKETING INNOVATION AND DESIGN Bibliography Amabile, Teresa M. (1996) "Creativity and Innovation in Organizations." Harvard Business School Background Note pp.396-239 Belohlavek, P. (2008). Unicist Marketing Mix. Blue Eagle Group. Charles W. Lamb, J. F. (2008). Marketing. Cengage Learning. Claudia (2013). Coka-Cola financials. (Online)(Cited: 3rd December, 2013). Retrieved from: URL:http://simplefinanz.com/Coka Cola-financials-q3-201 Douglas Bowman, H. G. (2010). Market Response and Marketing Mix Models: Trends and Research Opportunities. Now Publishers Inc. Euromonitor international (2012). Rumored Monster Acquisition Consistent with Coka Cola’s Vision. (Online)(Cited: 3rd December, 2013). Retrieved from: URL: http://blog.euromonitor.com/2012/05/rumoured-monster-acquisition-consistentwith-Coka Colas-vision.html Faber, N. (2012). Coke crushes Pepsi in most social media metrics. (Online)(Cited: 3rd December, 2013). Retrieved from: HYPERLINK "http://web.blogads.com/blog/2012/04/17/coke-crushes-pepsi-in-most-socialmedia-metrics/" http://web.blogads.com/blog/2012/04/17/coke-crushes-pepsi-in-most-social-mediametrics/ Haberer, J. (2010). Disneyland International Marketing Mix: International Marketing Mix of Disneyland Hong Kong. GRIN Verlag. Henry, A. (2008). Understanding Strategic Management. Oxford University Press. Johnson, M. W. (2010). Seizing the White Space: Business Model Innovation for Growth and Renewal. Harvard Business Press. Kaplan, S. (2012). The Business Model Innovation Factory: How to Stay Relevant When The World is Changing. John Wiley & Sons. Mohini Singh, D. W. (2004). E-business Innovation and Change Management. Idea Group Inc. 24 | P a g e
  25. 25. RUNNING HEAD: MARKETING INNOVATION AND DESIGN SA Journal of Industrial Psychology, 2002, 28 (4), 58-65 Seeking Alpha (2013). Coka Cola growth in overseas market and diversifying its products. (Online)(Cited: 3rd December, 2013). Retrieved from: URL:http://seekingalpha.com/article/1811522-Coka Cola-growth-is-in-overseas-markets-and- diversifying-its-products Porter, M. E. (2008). Competitive Strategy: Techniques for Analyzing Industries and Competitors. Simon and Schuster. Tallant, J. (2011). Downtown Dealership - An Effective Marketing Mix. GRIN Verlag. 25 | P a g e

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