Marketing innovation and design


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Marketing innovation and design

  1. 1. RUNNING HEAD: MARKETING INNOVATION AND DESIGN Marketing Innovation and Design 1|Page
  2. 2. RUNNING HEAD: MARKETING INNOVATION AND DESIGN Table of Contents 1) Define Innovation & Creativity. What inspired you to choose the product .......................................... 3 2) Coca Cola company Overview ............................................................................................................. 3 3) What is strategy (Strategy and its relation with product) ...................................................................... 5 4) Environmental Analysis (Competition, Customers, Market analysis) .................................................. 8 5) Value proposition and its Benefits ...................................................................................................... 10 7) Design, Process and Service product .................................................................................................. 15 8) Brand. (Brand, Brand Image, Market Position and Competition). ..................................................... 17 9) Give three conclusions and three recommendations ........................................................................... 19 Bibliography ................................................................................................................................................ 20 2|Page
  3. 3. RUNNING HEAD: MARKETING INNOVATION AND DESIGN 1) Define Innovation & Creativity. What inspired you to choose the product Innovation Innovation is the creative change in the ideas and thinking to create different products and things. Creativity Creativity is a way of creating something new or unique. It can be an idea, painting, poetry, drama, literature, movie or invention. It can from any field such as education, science, business, sociology, philosophy We have chosen the Coca Cola Company for our study, because it is one of the greatest brands in the world and it has the greatest brand and worldwide appeal. It has impressed and attracted its customers, fans from all sections of the society 2) Coca Cola company Overview Overview Coca-Cola aka coke is the most popular soft drink brand in the world. It rules hearts and minds of the people. It was founded by John Pemberton in March 1944; it was later purchased by an American investor named Asa Griggs Candler. According to latest figures of 2013, its revenue was 2.5 Billion Dollars in the year 2013 and it showed 5 % increase as compared to the last year. It earns more than 75 % revenue from its international sales. The Coca-Cola Company functions in more than 190 countries and produces more than 3000 various products of 400 different brands, it includes famous brands such as Coca cola, Sprite ,Diet Coke, Free CocaCola, Diet Coke Caffeine-Free, Coca-Cola Cherry, Coca-Cola Zero, Coca-Cola Vanilla, and other versions such as lemon, lime or coffee. etc 3|Page
  4. 4. RUNNING HEAD: MARKETING INNOVATION AND DESIGN According to the Inter brand, worlds most renowned and authentic branding consultancy firm, it was world’s most valued brand in the year 2011.Coca Cola has increased its brand value over the years, because it spends billions of dollars on its advertising and marketing campaigns, according to latest figures it has spent more than 4 billion dollars in the year 2011-12.It hires global celebrities like Bill gates, Taylor swift, Amir khan, Elle fanning, Keenu Reeves, Selena Gomez, Courtney cosh, Paula Abdul and Charlize Theron. 4|Page
  5. 5. RUNNING HEAD: MARKETING INNOVATION AND DESIGN 3) What is strategy (Strategy and its relation with product) Following are the main points covered by the business/marketing strategy of the Coca 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. Coca-Cola has always been able to make the most suitable advertising mix. Since its starting, Coca-Cola has made its deals using a universal scheme and planning based on three great rules: Acceptability Through efficient advertising, making sure that Coca-Cola brands are an essential part of customer’s routine lives, making Coca-Cola the most wanted soft drink all across. Affordability Coca-Cola makes sure that it offers the reasonable price for its products so that everyone can afford it. Availability Ensuring that Coca-Cola brands are obtainable anywhere people want entertainment, a universal diffusion of the marketplace. Coca-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 Coca-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 Coca-Cola is being 5|Page
  6. 6. RUNNING HEAD: MARKETING INNOVATION AND DESIGN 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 coca cola and the company’s basic strategy is to keep them all engaged in the products of coca cola by their best marketing and the quality of the product. 6|Page
  7. 7. RUNNING HEAD: MARKETING INNOVATION AND DESIGN ANSOFF Matrix ANSOFF matrix is an amazing strategic management tool that gives insight to the business planners and management to think about the avenues to develop and improve the existing market of the product. ANSOFF MATRIX Market Penetration Coca Cola should increase its products in the existing market Market Development Coca Cola have to develop new markets which can Product Development Coca Cola should improve its product varieties Diversification Coca Cola should introduce new and innovative, help them achieve competitive advantage in Asia and Africa due to increasing Challenges from big names and new entrants 7|Page
  8. 8. RUNNING HEAD: MARKETING INNOVATION AND DESIGN 4) Environmental Analysis (Competition, Customers, Market analysis) PEST ANALYSIS PEST analysis is a type of market analysis comprising of political, economical, social and Technological factors. Political Politicians also play very important role in the progress and development of any company.Some governments introduce laws such as taxes and regulations, which can really affect performance of the Coca Cola Company. Economical Economy also plays very important role, because if people are economically sound, then they will more and more buy the Coca Cola product Social Due to advent of media and internet culture, people around the world are more aware about the international brands like Coca Cola, now it is a fashion and style symbol for the people. Technological Due to technology advancements such as internet etc, technology has become very important for every country. Social media and internet marketing tools are really helping Coca Cola in promotion its business all over the world. Coca Cola has more than 70 million face book likes. 8|Page
  9. 9. RUNNING HEAD: MARKETING INNOVATION AND DESIGN 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. Coca 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 Coca 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 and kids to use them. Market Food and beverage industry is a matured and old industry, and Coca 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 Coca Cola, It is using the technology to great effect for its financial and marketing benefits. 9|Page
  10. 10. RUNNING HEAD: MARKETING INNOVATION AND DESIGN 5) Value proposition and its Benefits 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 keep them in roll. Another value is that the company introduces different products every now and introduces them on a very low cost that everyone can enjoy the taste. Competitive benefits can usually be originated in superior sources, superior abilities and talents or a superior attitude and ranking. Sources and attitudes support a company to do more and more, or do it in a best way than the opposition. Dissimilar sources and abilities will be needed support on the industry or market section. Positional benefit is how the preparation of these sources and abilities are used to out manoeuvre the opposition. Positional benefit can be profited by forward preparations, greater abilities and talents and sources, or the good luck. Once an overbearing position is profited, it is hard for the opposition to dislocate the obligatory and mandatory company provided the position merits extension and drawing out and that it highly expensive for opposition to take over.To be efficient and powerful, a corporation needs to gain both its perfect strategy and planning working in synchronization and coordination to provide the ideal productivity and return just like brands such as McDonald and Leppard etc. Both strategy and planning should be established after a very careful assumption of the situational environment. It is apart from other business findings that businesses attitudes themselves to the left of this medium are recognized to die, planning being the main feature as to how faster. Assuming Coca-Cola’s international 10 | P a g e
  11. 11. RUNNING HEAD: MARKETING INNOVATION AND DESIGN reputation and presentation, we can make arguments that the corporation is growing well as it is efficient to do such things perfectly. The company is having better and effective customers following than opposition. Being one of the top provider of the beverages coca cola has the 59 % share of the market which is very huge percentage of the total market. Porters’ five forces model Porter’s five forces model is one of the most important models used in the business/marketing field. Porter’s five forces include (1) Threat of New Entrants, (2) Threat of Substitute Products or Services, (3) Bargaining Power of Buyers, (4) Bargaining Power of Suppliers, (5) Competitive Rivalry among Existing Firms. (1) Threat of new entrants There is always a threat of new entrant in the food and beverage industry, as cost of entry in this not very high and customers are also always ready to test new products. (2) Threat of Substitute Products or Services There are lot of substitute products present in the food and beverage industry. If there is some problem in the taste and service of the Coca Cola, customers can switch over to other products. (3) Bargaining Power of Buyers As far as bargaining power of buyers is concerned, there is not much bargaining power of end customers. Only large retailers like Wal-Mart and Metro can exercise there bargaining power to some extent. (4) Bargaining Power of suppliers As far as bargaining power of buyers is concerned, there is not much bargaining power of suppliers, because it has simple ingredients for its production. 11 | P a g e
  12. 12. RUNNING HEAD: MARKETING INNOVATION AND DESIGN (5) Competitive Rivalry among Existing Firms There is very strong competition in the food and beverage industry. Coca Cola has to compete with very strong rivals like Pepsi, Starbucks and Sprite etc, who have very strong marketing, advertising and business strategies. 12 | P a g e
  13. 13. RUNNING HEAD: MARKETING INNOVATION AND DESIGN 6) Marketing Mix & Characteristics Coca cola has a very strong consumers following all across the world, because of its amazing marketing strategies. Its strategies include about producing new products or maintain relationships with the traders etc. The Coca-Cola Marketing Mix is all about adjoining more and more products which are efficient in quality. Coca-Cola is a company that has been working best for a while. They have used their marketing mix to enlarge their quantity of products they trade. It is the result of such an efficient and effective strategy that they have introduced more than 3300 products so far. They are advertising for their products in such a way that the consumer gets attractive and they have craving for it. This is another strategy to stay in market with high ratings. Introduction of new products every now and then let the consumers busy in wondering about the product. They are also trading more low calorie and health friendly items than before. If we talk about coca cola’s products in countries like Pakistan and India, Coca cola introduces new offers every now and then For example; In Pakistan, coca cola introduces Ramadan offers and minimizes the product cost for all its customers so that everyone can enjoy the taste and quench the thirst. Coming to India, coca cola provides different offers for its consumers such as it provides different offers on Diwali and other events. This is one best thing about coca cola which consumer likes the most about the company. The characteristics of coca cola are given below: The brand is known all across the globe because of its curvy and red logo. It is one of the major brands introduced by United States. It has following important characteristics 13 | P a g e
  14. 14. RUNNING HEAD: MARKETING INNOVATION AND DESIGN (i) The company has immigrant strategies of production. (ii) The company provides opportunities to so many employees. (iii) The company is passionate about achieving its accomplishments. (iv) The company provides sponsorship for other events as well to make its consumers enjoy everything around. (v) The company has highest standards in productivity and quality. (vi) The brand has real and unforgettable taste. (vii) It goes well with food and other snacks. (viii)It is worth for what it costs because it is thirst quenching. (ix) Coca cola is biggest and selling brand of soft drinks in the history . (x) Coca cola is one of the top brands that supports sponsorship 14 | P a g e
  15. 15. RUNNING HEAD: MARKETING INNOVATION AND DESIGN 7) 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 coca cola is taking care is inclusive of following things. Coca 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 a 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 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 coca cola Marketing is the 15 | P a g e
  16. 16. RUNNING HEAD: MARKETING INNOVATION AND DESIGN 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 coca cola. coca cola is famous for its service and design amongst all the business dealer and big corporate in the world because it has a proper strategy plan. 16 | P a g e
  17. 17. RUNNING HEAD: MARKETING INNOVATION AND DESIGN 8) Brand. (Brand, Brand Image, Market Position and Competition) Brand is image of a company. Coca cola brand has exclusive structure, sign, representation, words, or a blend of these, working on establishing an image, which recognizes coca cola and makes it different from its opponents. By the time, this brand becomes related with a level of reliability, excellence, and gratification in the customer’s mind. When creating a plan on branding, or establishing a brand, corporations that are using web pages and other search methods optimization have a few details to work out before being able to build a successful brand. Coordinating a sphere of influence names and brand names are an essential and significant part of finding and keeping the visitors and clients, as well as branding a new corporation. 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 corporation to keep that boost up, or goes beyond them, gathering one better goods and services to the market place. Thus Coca cola help stressed customers in crowded and congested marketplace, by standing for certain advantages and value. Legal name for the company Coca cola is a symbol and when it recognizes or stands for the 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 17 | P a g e
  18. 18. RUNNING HEAD: MARKETING INNOVATION AND DESIGN and tend to devaluate the opponent brand by keeping a less positive and constructive behaviour toward it. Only when the opponent brand assertions and statements are seen to be appreciably and extensively superior do loyal customers hold a more positive and constructive behaviour toward it. They say behind every prosperous company, there is great strategy. The company may have established this strategy via prescribed research, try-outs and mistakes or faults. No wonders how it was established, it is the strategy that supports the achievement of the company. To comprehend company's achievement, the reason of successful strategies must be comprehend. It would be quite unbelievable to recognize two people who share the same description of strategy from the notion of strategy as arranging to strategy as visualizing. 18 | P a g e
  19. 19. RUNNING HEAD: MARKETING INNOVATION AND DESIGN 9) Give three conclusions and three recommendations Conclusion 1: Coca Cola appliew very effective strategies to attract the consumers. The company is well aware of the desires and requirements of its consumers; this is the reason that coca cola is one of the leading industries all across the world. Conclusion 2: The company makes proper decision when introducing a new product. These decisions are not made on quick basis but they take very long time on their execution because the company looks at all the positive and negative aspects and then launch’s a new product. They say that the voice and interest of a consumer is the heart of a company’s success and strength. The company should keep the taste and choice of the consumer in its priorities. Conclusion 3: The company has a strong and very reliable relationship with all its distributors who distribute its bottler to all across the world. The company has a very huge bottler’s network to provide its products everywhere and makes sure that there is never shortage of any product in all across the world. 19 | P a g e Recommendations 1: The company should maintain its strategies so attract more consumers and to retain the existing consumers because best strategy is the only thing which keeps the consumers in favour. Apple product is one of the best examples of improvising strategies. Recommendations 2: The company should maintain its decision making that what to launch, when to launch or why to launch at this time. These all things are very necessary to keep an eye on because all the little things are necessary to be under eye. The company must take care of the taste of its consumers so that the attraction stays same always. The consumer’s choice should always be in the top list of the company. Recommendations 3: To keep the business go fine and maintained, the company must keep its relationships positive and reliable with all its distributors so that there is no delay of trading the products in any corner of the world. This is the basic root of the business and it should be kept maintained.
  20. 20. RUNNING HEAD: MARKETING INNOVATION AND DESIGN Bibliography BELOHLAVEK, Peter. 2008. Unicist Marketing Mix. Blue Eagle Group. CHARLES W. LAMB, Joseph F. Hair, Jr., Carl D. MacDaniel. 2008. Marketing. Cengage Learning. DOUGLAS BOWMAN, Hubert Gatignon. 2010. Market Response and Marketing Mix Models: Trends and Research Opportunities. Now Publishers Inc. HABERER, Jenny. 2010. Disneyland International Marketing Mix: International Marketing Mix of Disneyland Hong Kong. GRIN Verlag. HENRY, Anthony. 2008. Understanding Strategic Management. Oxford University Press. JOHNSON, Mark W. 2010. Seizing the White Space: Business Model Innovation for Growth and Renewal. Harvard Business Press. KAPLAN, Saul. 2012. The Business Model Innovation Factory: How to Stay Relevant When The World is Changing. John Wiley & Sons. MOHINI SINGH, Dianne Waddell. 2004. E-business Innovation and Change Management. Idea Group Inc. PORTER, Michael E. 2008. Competitive Strategy: Techniques for Analyzing Industries and Competitors. Simon and Schuster. TALLANT, James. 2011. Downtown Dealership - An Effective Marketing Mix. GRIN Verlag. 20 | P a g e