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Unit 2 Marketing essential coca-cola case study

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Unit 2 Marketing essential coca-cola case study

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Introduction - Unit 2 Marketing essential coca-cola case study

Coca-cola is considered to be one of the strongest holders of brand image and high customer satisfaction and loyalty. The company has also introduced many products that are based on health aspects. Coca-Cola has also invested a huge amount in promotional and marketing strategies for increasing its brand image and engaging customers. The entire report focuses on the marketing plan rules of marketing and its connection to the other organizational functions.

Organizational background

Coca-cola is considered to be one of the largest leading brands providing liquid bridges in the entire soda industry. Apart from that, also one of the largest non-alcoholic beverage industries across the globe. The company has also a huge product portfolio in the industry. The soda industry has also faced a huge economic slowdown due to the covid-19 pandemic situation and also the increase in health consciousness among people. Currency fluctuation is also another factor of the economic slowdown of Coca-cola (Jones and Comfort, 2018). The popularity of Coca-Cola beverages has also reduced as per the growing health consciousness among people. Using the marketing strategies of the company, their food can develop a marketing plan for the growth and development of the entire economy of the company.

Mission statement

The mission statement of Coca-Cola is "to refresh the entire world in body, mind, and spirit to help them inspire the moments of happiness and optimism with the help of the brands of Coca-Cola and to create a huge value and product differentiation". The company focuses on using product differentiation to increase competitiveness and also tries to make the customers enjoy the test of the products. The mission statement of the company also helps in outlining the major components of improving the communities and lives and exceeding the expectations of the customers (Jones and Comfort, 2018).

Purpose and core objectives

The core values of the company include "integrity, accountability, leadership, collaboration, passion, quality and diversity". The main aims and purpose of the company are to foster and stimulate a good relationship in such a way that the customers can develop or generate a good quality product by brainstorming and sharing their innovative ideas. The Coca-Cola Company has the sole purpose of inspiring people to have a good and happy life with the taste of the beverages of Coca-Cola. The leaders of Coca-Cola also try to uplift the living standards of people (Abbasi, 2017).

Roles of marketing

The Marketing Department is important in creating a group's brand and mission. It serves as a company's public image, coordinating and creating all promotional materials. The Marketing Department's goal is to connect to buyers, investors, and the general community. All present a favorable image of a firm (Abbasi, 2017).

Marketing plays a great role in organizational growth and development and also the operations of marketing are widely connected to other organizational operations. the roles of marketing will be discussed in the following:

Creation of utility

Marketing is responsible for a great deal of a product's utility. A product's utility relates to its capacity to meet needs. Shape, venue, duration, knowledge, and the value of acquisition are all produced by marketing. The marketers of coca-cola identify these areas to create the utility of the products of the coca-cola brand.

Conducting customer and market research

 Research can help in determining target market opportunities, and also understand how some people view goods and services. The marketers of coca-cola thereby help in identifying the needs and requirements of the customers.

Meeting needs and demands of customers

Marketers of coca-cola analyze the preferences of customers and adjust their advertising methods to meet those needs. They get an influence on preferences, which are determined by the cultural and personal features of the customers. The exchanging system fulfills their expectations (Abbasi, 2017).

Ensures the survival of the company

With the help of marketing techniques, the company also tries to ensure survival of the company. Customer retention and market share growth are critical for such a sustainable enterprise. As marketing is consumer-based, it helps firms in attaining their objectives. Marketing assists in surpassing buyers' demands in terms of contentment.

Increase market size

Marketers of coca-cola use mass communication tools including promotion, advertising, event management, and public relations to promote the word about their products. Additionally, public relations strategies help create and preserve an image of the business and product. Marketing became more engaging with the help of advancements in media technology.

Helps in pricing strategy

Because it generates revenue, pricing is an important part of a producer's marketing strategy. Establishing fair prices, considered to be key modifications, and creating a correct approach are all supported by marketing strategies. When prices are set positively, the interaction goes smoothly.

Management of demands

Marketers of coca-cola are fully skilled specialists who play a vital role in driving market needs, timing, and composition. Negative need, zero demand, latent desire, declining demand, erratic demand, full demand, or overfull demand all are forms of demand. Marketing assists in the control of such changing demands and expectations.

Face competitiveness

In today's global markets, competitive orientation is important. By regularly monitoring the overall market, advertising aids in maintaining a balance between customer expectations and competitor supplies. Marketers use quality service, quality products, and streamlined distribution to maintain market share. The marketers of coca-cola try to develop strategies to develop products that can meet the maximum preferences of the customers. It helps the company increase its competitiveness in the marketplace (Ochonogor and Nwachukwu, 2019.). Meeting the taste and preferences of the market also helps in increasing a great competitive advantage and market position.

The connection between marketing and other organizational operations

Marketing operations are directly connected to the other organizational functions. As marketing techniques involve the pricing strategy, product development, by developing marketing strategies, the organizational leaders in the production department try to improve the product quality and design as per the marketing strategies developed.

Marking strategies also include the financial and economic department of the organization as the leaders of coca-cola fixes the price of the products by analyzing the market patterns, demands of the customers (Lin and Lucas, 2018). The finance department also fixes the cost and expenditure of the product development, employee cost, and other financial areas by the market analysis.

Marketing roles are also directly connected to human resource management. As marketing needs expert and talented employees for developing brand image, logo design, social media marketing, advertising through digital media, all these activities require technical knowledge and skills. The skill and knowledge development of the employees are made by the effective training and skill development designed by the human resource management. Therefore, marketing also impacts human resource management (Olson et al., 2018).

Task 2

Comparison between two organizations

Marketing mix

Coca-cola

Nestle

Product

The products include beverages, liquids, and soda. The company tries to increase the quality of the products as per the tastes and preferences of the customers (Kuka, 2018).

Nestle mainly delivers baby foods, chocolate, dairy products to the customers. It also tries to develop the products as per the demands of the products. Nestle provides good quality products to the customers.

Price

Maintains the price of the products as per the per capita income of a country and the production and distribution cost. Maintains a low cost of the products (Dirgantara and Devie, 2019).

The price strategy is based on the packaging and consumption aspects. The product quality is enough and a slight price rise can make the customers swift to their tastes (Dirgantara and Devie, 2019).

People

Adults, children, and all aged people are the main customers of Coca-cola.

Mainly children are the targeted customers. Apart from that, all aged people are targeted.

Promotion

Promotion is done through broadcast, social media, digital media, and advertisements.

The main channels of promotion include TV, broadcast, internet, etc.

Physical evidence

Packaging, developing offices and infrastructural areas are the main physical evidence of the company.

Development of manufacturing houses, stores, packaging, and logo design is the physical evidence.

Place

The products are delivered across the globe.

The products are also delivered to customers across the world.

process

By preparing the beverages, packaging, distributing is the main process of the company. 

Preparing dairy products, chocolates, packaging, selling, and delivery are the man process.

(Source: Saidani and Sudiarditha, 2019; Mallik and Farhan, 2018; Abbasi, 2017)

Marketing strategies based on marketing mix

Product

Coca-Cola has developed a large product portfolio of around 500 still brands. It thereby provides many beverage choices to the customers including more than 3000 brands of beverages. Google has become one of the largest reputed and valuable brands of beverages. In the portfolio of Coca-Cola, there are more than 20 billion dollar brands and around 20 brands are available in no or low-calorie form. The brands of Coca-Cola include Sprite Fanta coca-cola, coca-cola zero, diet Coke, Dale valley (Jones and Comfort, 2018).

  • The brand of simple orange is a 100% pure fresh and natural orange juice beverage that is available in 6 varieties.
  • There is a sport and fitness-related drink named Powerade zero. 
  • Coca-Cola life is a low-calorie beverage that is produced with cane sugar and stevia leaf extract.
  • Coca-Cola is the highest selling and most popular beverage and soft drink. 
  • Sprite is a flavored soft drink based on lemon-lime. It was introduced in 1961.
  • The second oldest beverage and soft drink brand of Coca-Cola is Fanta that also comes in the flavor of orange.
  • Diet coke also available in the name of Coca-Cola light is found in various markets. It is a calorie-free and sugar-free soft drink that was introduced in 1982.

Place

The place strategy in the marketing mix has a very crucial role in the entire marketing strategy in making decisions. The place strategy is associated with the distribution of the products and services of a company to different markets that can help the company increase its sales and revenue collection. The main fundamental of the place that g is where the products are distributed and how the strategy can be developed to increase the distribution system of a company (Saidani and Sudiarditha, 2019). Coca-Cola has a huge distribution market and that is also extensive. The products of the coca-cola brand are distributed in more than 200 countries across the globe including North America Latin America Africa Europe Eurasia etc. The company sells around 1.9 billion products every day therefore it is visible that coca-cola has a huge distribution market. Coca-Cola sells and manufactures beverage bases concentrates and syrups. The bottling partner of coca-cola manufactures the products merchandise package and distributes the final produced soft drinks and beverages to the consumers and vending partners. The bottling partners of gold Coca-Cola work with the customers of street vendors, restaurants, grocery stores, movie theatres, cinema halls, amusement parks and other areas. The beverages are also distributed to other local markets to reach the customers (Saidani and Sudiarditha, 2019). Therefore, the distribution system of the company is huge and has acquired a better marketplace. 

Price 

The main rival of Google cola-cola is Pepsi. The price of cost strategy is made depending on the per capita income of a country and also on the cost of the production. The price of both the bands like coca cola and Pepsi is set to maintain the competitiveness of the bands. Therefore, the price strategy is very significant because it helps coca-cola increase competitiveness with Pepsi (Dirgantara and Devie, 2019). The price is set by keeping it in mind that the price could not be beyond the average reach of the customers. It is also kept in mind that the price cannot be too low to make the impression of the product's low quality. The price strategy of Coca-Cola is developed to maintain the brand loyalty and customer satisfaction. Apart from that, the demand for soda products has decreased and the price competition between coca-cola and Pepsi has intensively increased. As the packaging grows higher the price for the packaged product lowers. When a customer buys a single Coca-Cola product has to pay a high price and the bulk buyers have to pay significantly less than the single ones (Dirgantara and Devie, 2019). Coca-Cola tries to maintain a low price for the products to attract customers. Price is also maintained to meet the competition level of the company at the marketplace.

Promotion

There is a huge competition in the soda industry and the highest brands and comparatively a huge amount for advertising and marketing for increasing their sales and revenue collection. Coca-Cola also high amount for their marketing. In 2016 total marketing expenditure of coca cola was around 4 billion and that grew around 4.1 billion in 2018. The promotional activities of coca cola play a significant role for the marketing operations of the company. Modern channels and traditional channels are used by the company to promote the soft drink brands and products (Mathur, 2021). Coca cola launched its campaign called taste the feeling in 2016 that also utilised a huge amount for the promotional activities. This campaign united all the other brands of coca cola. Coca-Cola also initiated the approach of taking one brand that marked a very remarkable shift from the former advertising and marketing strategies of coca cola. The promotional activities include advertising through social media broadcast news channels and internet implementing campaigns. Coca cola also serves the advertising and promotional activities across social media and the internet. The social media marketing strategy is developed to connect the customers of the company for increasing their engagement to the brand of coca cola (Mathur, 2021). Strategies for investing in maintaining the sustainability and good corporate social responsibility of the company by developing a manufacturing network and a sustainable supply chain. 

People

The company targets all people, children, young and adults all are the targeted customers. Coca-Cola company provides job opportunities to and also is a large employer. The company has an aim to maintain the strategic human resource management for helping many employees find their job and career growth.

Process

Coca-Cola bottling partner manufactured the products and sold the products to consumers across the world. By combining the concentration of sparkling water, and sweet as per the requirements of the product the product is prepared and then they are packaged and sold and are distributed to the targeted market. The operations of finishing the products of coca cola brand include bottling, selling and distributing (Mallik et al., 2018)

Physical evidence

The physical operations of coca cola are distributed across the globe. The company's physical infrastructure is associated with its concentration of manufacturing operations and headquarters and other regional and local offices of the company located in various parts across the globe. There are also many operations that are performed in the retail store including logo designing, packaging, and advertisement. 

Unit 2 Marketing essential coca-cola case study

Marketing mix

(Source: Mallik et al., 2018)

Marketing plan

Marketing plan of an organisation includes market analysis, segmentation marketing objectives and target market.

 Market analysis

The market analysis of the company includes internal and external environment analysis. For developing a marketing plan it is important to analyse the internal and external environment. 

Internal business environment

The internal business environment and its effect is something the business may impact to a somewhat extent. Reliability in the manufacturing method, and also leadership skills and excellent channels of communication, are the most prominent attributes in the internal environment. To efficiently manage and monitor the internal workplace environment, Coca-Cola must conduct numerous conceivable of the company's performance and rapidly react to any factors that can cause inefficiencies in any phase of the manufacture and consumer process.

External business environment

External business environment is also another crucial force that can impact the entire industry and the economy. Changes in the external business environment can create advantages and also bring threats in the marketplace of coca cola. 

SWOT analysis

SWOT analysis includes analysis of the strengths, weaknesses, opportunities, and threats of the company that help understand the changing pattern of the market and develop a proper marketing plan. 

Strengths

For a long time Coca cola has been a very difficult part of the culture across the globe. The product image of Coca-Cola loads with over-romanticizing and that is the main factor of attracting the customer satisfaction. Images of the product of Coca-Cola are also displayed on hats, t-shirts etc. The bottling system of Coca-Cola is also another strength of the company because it allows the marketers conduct the business operations at the international level. It also needs the demands of the local customers. The bottling companies are operated and owned by local operators and independent business people who are provided with the authorisation of selling the products of Coca cola (Abbasi, 2017). 

Weaknesses

Health conscious people try to avoid consumption of sugary drinks and cold drinks. It is the main reason for the decrease in the sales and revenue collection of the products of Coca cola. Regular consumption of Coca cola and other beverages can bring an adverse effect on teeth and other health related issues. To efficiently achieve efficiency and productivity in their business's activities, every business's weaknesses must be eliminated and regulated, and Coke is no exception. Regardless of the fact that sales revenue and also many international markets are expanding (Abbasi, 2017). Apart from that, it also causes diabetics due to excessive sugar concentration in the products of coca cola. It has therefore causes a great weakness in the business of coca cola. Drinking coca cola and related products on a daily basis can also adversely impact the health of people.

Opportunities

The competitive advantage of coca cola is highly impacted by the brand recognition of the coca cola company. The brand is recognized across the globe. The huge brand recognition and reputation of the company is the main factor of its great market opportunity. The packaging and bottling methods of coca cola is also high and this is the main factor of the company’s reputation (Abbasi, 2017).

Threats

The competition level is high and there ae many companies providing the similar products and also many companies are bringing innovation in the product development by maintaining the health related issues in the products. It is therefore a huge threat for the company. The buying power of the customers is also a key threat for the company’s sales (Abbasi, 2017). The changes in the buying decision and buying pattern of the customers are also another factor of threat for coca cola. It is therefore decreasing market opportunity and market share of the company.

SWOT analysis

Unit 2 Marketing essential coca-cola case study

(Source: Abbasi, 2017)

Product life cycle

For selling a product in the market, the marketers need to be aware of the product life cycle. The life cycle of the products has five different phases including development, growth, introduction, maturity, and decline. The coca cola company belongs to the maturity phase and this phase has a full evidence that the company has a large number of loyal and stable customers (Kuka, 2018). The cost management, marketing and product differentiation of the product of coca cola are the most important areas of development and increase of the market share of the company. Using these areas, the company can increase its profitability. The advantage of the company comes mainly from the strongest branding strategy.

Unit 2 Marketing essential coca-cola case study

Product life cycle

(Source: Kuka, 2018)

Marketing objectives

The marketing objectives are developed by some effective ways. The purpose of the goal and objectives is to help the company control the plans and strategies of marketing, to help the employees get motivated and the company’s team achieve the goals, and to help provide a focus for the operations of the company.

Using the SMART techniques, the objectives can be developed.

SMART includes:

Specific

Measurable

Achievable

Realistic

Time scale

The marketers need to make the strategies that are precise and specific about the goals of the company. The company has the specific goal of increasing brand image and brand recognition.

The goals need to be measurable. The goals of developing marketing strategies are measurable. The rate of achievement of the goals can be measured.

The goals should be achievable. The company can achieve the goals of attracting a large number of customers.

These goals need to be realistic. The resources of coca cola can help make the objectives realistic. It has efficient people, capital, market and employees to help achieve the goals.

The goals can be achieved within 2 years.

(Source: Moore, 2017)

Unit 2 Marketing essential coca-cola case study

SMART objectives

(Source: Moore, 2017)

Market share objectives

The company plans to develop the national and international market of the company.

Profit objectives

The company wants to achieve around 20% profit at the end of the year.

Promotional objectives

The marketers try to develop effective strategies to develop awareness among people regarding the products in the market.

Objectives for development

The marketers have developed the goals to increase the market share and size across the world.

Objectives for survival

The marketers want to develop strategies to survive in the market by increasing competition at the marketplace.

Selecting the target market

Selecting a market is the key concern for developing marketing strategies of the company. The marketers of coca cola try to develop strategies to target the market of the customers. As soft drink market is so vast, the corporation can't become the believer of all things to people, it has to choose and decide which market segments have the most opportunity to achieve the goals of attracting customers. The target market is the portion of the target consumers upon which constitute the organization its efforts. Coca-Cola centres its marketing efforts mostly on target market as it considers here is where it will be most fruitful. Cola is the biggest cola's market is highly competitive. It caters to the requirements of a broad range of consumers.

The company tries to meet the demands of the health-conscious people through Diet Coke to the common person through its best-selling drink, ordinary Coke. Most Coca-Cola items connect to people of all ages. Coca-Cola brand is purchased by the mass people of all ages (Tien et al., 2019). This market is rather big, so it is open to both women and men, leading to greater differentiated products. Coca-Cola may divide its audience in four categories. Mass marketing, targeted advertising, branding strategies, and niche marketing are all terms used to describe different types of marketing (Tien et al., 2019). Coca cola's prominent marketing plan is without a doubt, distinctive branding. Coke caters to a wide range of markets. Diet coke is good for weight loss, whereas ordinary coke, sprite, and Fanta are good for the ordinary person, as are coffee and iced tea. Each form of beverages belongs up to a specific set of persons, even though the most of beverages are suitable for the common citizen.

Conclusion

Therefore, it can be concluded that the marketing strategies and planning have used significance on organisational growth and development. Marketing is very significant for stimulating the organisational purposes and direct to the company towards achieving its goals and objectives with the help of analysing the market.

References

ABBASI, H., 2017. Marketing Strategies Of Coke: An Overview. Kaav International Journal of Economics, Commerce & Business Management4, pp.194-199.

Dirgantara, D.B. and Devie, E., 2019. THE INFLUENCE OF PRICE, PERCEIVED QUALITY, AND BRAND IMAGE ON CUSTOMER POST PURCHASE BEHAVIOUR OF FRESTEA AT PT COCA COLA AMATIL INDONESIA SEMARANG. JOBS (Jurnal Of Business Studies)4(2), pp.105-118.

Jones, P. and Comfort, D., 2018. The Coca Cola Brand and Sustainability. Indonesian Journal of Applied Business and Economic Research1(1), pp.34-46.

Kuka, M.G.K., 2018. Product Development and Management Strategies. Product Lifecycle Management: Terminology and Applications, p.11.

Lin, P. and Lucas, R., 2018. THE RELATIONSHIP BETWEEN MARKETING AND FINANCE. In ???????? ?????????? ????????? ? ?????? ??????????? ???????? ????????? (pp. 667-671).

Malara, Z. and Ziaeian, Y., 2019. MARKETING MODEL IN GLOBAL COMPANIES. DESIGNING AND MANAGEMENT. Przegl?d Organizacji, (6), pp.23-30.

Mallik, A. and Farhan, S.N., 2018. Customer Centric Approach Using 7ps of Marketing Mix. International Journal of Innovative Knowledge Concepts6(11), pp.136-149.

Mathur, M., 2021. Focusing on the Customer Relationship Management with Special Reference to Coca Cola: Brand Promotion Using SAP as a Medium for CRM. Insights into Economics and Management Vol. 12, pp.42-47.

Moore, J., 2017. Setting SMART objectives. Headteacher Update2017(6), pp.14-14.

Ochonogor, C.I. and Nwachukwu, F.G., 2019. Transnational Advertising of Coca Cola and the Adoption of Pop Culture among Youths in South-South Region of Nigeria. AFRREV IJAH: An International Journal of Arts and Humanities8(4), pp.28-43.

Olson, E.M., Slater, S.F., Hult, G.T.M. and Olson, K.M., 2018. The application of human resource management policies within the marketing organization: The impact on business and marketing strategy implementation. Industrial Marketing Management69, pp.62-73.

Saidani, B. and Sudiarditha, I.K.R., 2019. Marketing Mix-7ps: The Effect on Customer Satisfaction. Jurnal Pendidikan Ekonomi Dan Bisnis (JPEB)7(1), pp.72-86.

Sultan, K., Akram, S., Abdulhaliq, S., Jamal, D. and Saleem, R., 2019. A Strategic Approach to the Consumer Perception of Brand on the Basis of Brand Awareness and Brand Loyalty: A Comparative Analysis of Coke & Pepsi Brands in Erbil KRI. International Journal of Research in Business and Social Science (2147-4478)8(3), pp.33-44.

Tien, N.H., Vu, N.T. and Tien, N.V., 2019. The role of brand and brand management in creating business value case of coca-cola Vietnam. International Journal of Research in Marketing Management and Sales, pp.57-57.

Tien, N.H., Vu, N.T. and Tien, N.V., 2019. The role of brand and brand management in creating business value case of coca-cola Vietnam. International Journal of Research in Marketing Management and Sales, pp.57-57.

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