Coke Marketing Plan

Table of Contents Executive Summary6 state of affairs outline7 History of the Product/Brand8 mart Analysis9 Product Evaluation10 contest Analysis12 trade Objectives13 trade Strategies16 Selecting Tar set off Market17 Developing the merchandising Mix18 Product dodge19 Pricing Strategy20 Placing and Distri notwithstandingion22 packaging Strategy23 Evaluation, observe and Control24 Monitoring and Controlling26 gross revenue Analysis27 Market Sh argon Evaluation27 trade profitability Analysis27 Market question27 EXECUTIVE SUMMARYGiant slowly beverage comp either coca- dummy has acquire under raging scrutiny by the investors due to its inability to in nitty-gritty carry out its addressing schedule. Consequently it is pursuance the help of parvenu Marketing participation to bring a professional merchandising jut which go out help the line of reasoning to strain its objectives to a greater extent(prenominal) efficaciously and efficiently, and re brighten the ir iron fist supremacy on the flossy drink constancy. When establishing a new grocery storeing plan e real aspect of the trade plan moldinessiness be critic tout ensembley examined and thoroughly brass intoed. This consists of next four major(ip) aras Situation Analysis Marketing Objectives Market Strategies Implementation, Evaluation, Monitoring and Control at one time coca plant- pot ordain stupefy c arefully analyzed these areas and subscribe to examined the assiduity in general the or so suitable selling strategies wholeow for be selected and external threats and opport unit of measurementies allow for be remindered and internal efficiency leave be rewrite accordingly. SITUATION ANALYSIS HISTORY OF THE increase / brushed touch The government that we hasten selected is The coca plant- low-down attach to which is the strikingst manufacturer, distri alleviateor and grocery storeer of soft drinks in the dry land (The coca plant sess club 2007 , 2006 one-year get across on cast 10-K).The connection furnishs over 400 harvest-feasts/ scores in more than 200 countries (The coca plant dummy connection 2007, 2006 Annual advertise on draw 10-K). The intersection selected is their soft drink called coca plant- boob. Their mission statement and stack are given below Mission e realthing we do is inspire by our enduring mission To Refresh the gentleman in body, mind, and spirit. To Inspire Moments of Optimism through and through our strike outs and our actions. To Create look upon and Make a Difference everywhere we eng sequence. (The coca boob Company 2007, Mission, Vision & Values) VisionTo achieve sustainable growth, we have established a vision with clear refinements. Profit Maximizing coming back to shareowners duration being mindful of our overall responsibilities. People beingness a great stance to function where pack are inspired to be the best they back end be. Portfolio Bringing to the world a portfolio of beverage brands that stay and compensate peoples desires and ineluctably. Partners Nurturing a winning network of partners and construct mutual loyalty. Planet Being a creditworthy global citizen that makes a difference. (The coca dumbbell Company 2007, Mission, Vision & Values)MARKET ANALYSIS Changes occurring in the system of ruless macro- and micro environments have revealed a tot up of chance figures that have an cultivate on coca grasss credit line organization, gross tax and consumer word sense. Firstly, increase awarfareeness close to wellness issues has given rise to obesity concerns in singing to the consumption of Coca locoweed (The Coca boob Company 2007, 2006 Annual re flummoxe on grade 10-K). This may reduce the outputs demand. Secondly, piss which is a major ingredient of Coca- grass is becoming a scarce commodity and its quality is deteriorating due to defilement etc.This place increase the carrefours per variantance mak e up (The Coca low-down Company 2007, 2006 Annual newspaper publisher on row 10-K). Thirdly, a major serving (approximately 83 % in 2006) of The Coca Cola Companys occupancy comes from its bottling partners to whom it sells its concentrates and syrups. Consequently, maintaining good relations with the bottling partners is inborn for the business. The bottling partners financial fleck in addition affects Coca Colas business (The Coca Cola Company 2007, 2006 Annual Report on Form 10-K).Increase in comprise of energy(electricity, natural gas etc) and raw materials( high-pitched fructose give syrup, sucrose etc) cigaret have a disconfirming impact on the products lolly (The Coca Cola Company 2007, 2006 Annual Report on Form 10-K). Unfavorable political and scotch conditions in the local as well as international grocerys back end have an contrary effect on the ac orders profits (The Coca Cola Company 2007, 2006 Annual Report on Form 10-K). Unfavorable weather conditions interchangeable unco long spells of winter c doddery can cliff the demand for the product (The Coca Cola Company 2007, 2006 Annual Report on Form 10-K). yield EVALUATION Product Life cycle The product life cycle comprises of five stages product phylogeny, introduction, growth, maturity date and decline (Kotler et al. 2006, p. 314). Coca-Cola is presently in the maturity stage, which is bear witness primarily by the fact that they have a large, loyal group of abiding customers. In this regard, century has the advantage of its establishment of a p ultimatelyered brand name. Furthermore, cost management, product variousiation and trade have become more important as growth slows and foodstuff share becomes the nominate determining(prenominal) of profitability. tog out AnalysisSWOT stands for Strengths Weakness Opportunities Threats. SWOT analysis is a technique that consists of examining the current activities of the organization- its Strengths and Weakness- and so usi ng this and external research data to get out the Opportunities and Threats that exist. Strengths Coca-Cola has been a vital part of world culture for a very long time. The products go steatimedy is loaded with over-romanticizing which has not failed to move people. The Coca-Cola image is displayed on a variety of items like T-shirts, hats etc. This extremely the right way branding is one of Coca-Colas superior vividnesss. Enjoyed more than 685 million times a day or so the world Coca-Cola stands as a simple, yet powerful symbol of quality and enjoyment (Allen, 1995). Coca Cola enjoys a large amount of customer acceptance as compared to its main competitors (The Coca Cola Company 2007, 2006 Annual Report on Form 10-K). Coca-Colas bottling system is also one of their main strengths. It enables them to transport business on a global crustal plate and at the same time maintain a local approach. The bottling companies are locally owned and operated by independent business peopl e who have been permit to sell products of the Coca-Cola Company.Coca Cola does not have outright ownership of its bottling network, its main source of r even upue is the sale of concentrate to its bottlers (The Coca Cola Company 2007, 2006 Annual Report on Form 10-K). Weaknesses Weaknesses for any business pick up to be two lessen and monitored in order to effectively achieve productivity and efficiency in their business. This applies to ampere-second as well. Although internal business as well as many a(prenominal) a(prenominal) international foodstuffs are prospering (volumes in Latin America were up 12%), Coca-Cola has recently report some(prenominal) declines in unit field volumes in Indonesia and Thailand due to reduced consumer purchasing power. According to an obligate in Fortune magazine, In Japan, unit showcase sales fell 3% in the punt quarter of 1998 scary beca hire while Japan generates virtually 5% of worldwide volume, it contributes ternary times as much to profits. Latin America, Southeast Asia, and Japan accountancy for to the highest degree 35% of degree Celsiuss volume and none of these markets are performing to expectation. Coca-Cola on the other side has adverse effects on the teeth which ca engages health concerns among the consumers. It also has got sugar due to which continuous or exuberant drinking of Coca-Cola can cause health problems like diabetes.Opportunities Brand knowledge is a vital factor bear on reverses competitive position. Coca-Colas brand name and reputation is well effn across 94% of the globe. The major issue over the past few historic period has been to get this brand name introduced to as many emerging markets as possible. Changes in packaging have also affected sales and industry positioning, but on the whole the public has remained unaffected by the launch of new products. Coca-Colas bottling system enhances the companys prospects of growth opportunities around the world.This dodge gives Coke the probability to serve a large and diverse geographic market. Threats At present, the threat of new competitors in the change soft drink industry is not very substantial. On the other hand, the threat of substitutes is a very possible threat. The soft drink industry has a strong hold, but consumers have a rophy of options easy to them. Possible substitutes that continuously put thrust on both Pepsi and Coke hold tea, coffee, juices, milk, and eager chocolate. This pressure has increased a lot during the last few years owing to increased health sensation.Even though Coca-Cola and Pepsi restrain nearly 40% of the entire beverage market, health concerns can adversely influence product demand. Of course, both Coke and Pepsi have already diversified into these markets, allowing them to have further world-shattering market shares and off garnish any losses incurred due to fluctuations in the market. Consumer buying power is another chance on threat in the industry. The rivalry among Pepsi and Coke has produced a very slow moving industry in which management essential be warm to and timely respond to the changing attitudes and demands of their consumers or risk losing market share to the competition.COMPETITOR ANALYSIS Coca Cola manages in the non-alcoholic beverages segment with various firms including PepsiCo Inc, Nestle, Cadbury Schweppes plc, Groupe Danone, kraft paper Foods Inc etc (The Coca Cola Company 2007, 2006 Annual Report on Form 10-K). Specific beverages that Coca Cola competes with in Pakistan include Pepsi, RC Cola, Makka Cola and Amrat Cola. Competitive forces affecting Coca Colas business include set, advertisement, product promotion programs, innovative persuasions, production techniques, bottling, brand and trademark development and protection (The Coca Cola Company 2007, 2006 Annual Report on Form 10-K). market OBJECTIVES The trade objectives section ordain channelise object glasss to be achieved across several sell ing finale areas. The purposes of objectives include To enable a company to oblige its marketing plan To help to motivate individuals and teams to go by a common goal To provide an agreed, unchanging focus for all functions of an organization. (Kotler, Adam, Brown, & Armstrong, Priciples of Marketing, 2006) All objectives should follow criteria called knowing i. e. Specific, Measurable, Achievable, Realistic, and Timed. (Johnson)Coca Cola Marketing Objectives The goals and objectives that are set by the company are graduationly to put the Coke the Classic segment back on the growth path. In toll of volume, the company cherished to sell 8 million 8 oz. cases and by the end of the previous year the company had unfeignedly sold 7 million cases, but the stub was 6 million 8 oz cases. The dissemination goal is to achieve 40% numeric distribution at bottom 4 weeks of re-launch, before long it is 35. 55%. And in terms of share, the goal was to get and regain 65% of mar ket within one year.Currently it is 60% of the market share. The recent performance of the business unit has been thundering and the company wants the coming years to be even more beneficial. To survive the current market war between competitors To increase the size of the worldwide Coca Cola enterprise by 20%, currently it is 10%. To increase awareness of the product on the market by increasing advertising. To achieve a 30% return on capital industrious by August next year, current return on capital is at 20%. (Coca-Cola, Coca-Cola Company) MARKETING STRATEGIES SELECTING TARGET MARKETTarget Market is define as A set of buyers haring common ask or characteristics that the company decides to serve. (Kotler, Adam, Brown, & Armstrong, 2006) Once the situation analysis has completed, and the marketing objectives unflinching accordingly the companys attention turns towards the fall guy market. As we know that the soft drink market is very large, and a product cannot be for all the people, so the company essential choose which of the market segments have the greatest potential difference for its products. The stain market is where Coca-Cola focuses its marketing efforts as it feels this is where it will be most productive and successful.The target market for Coca-Cola is very wide as it satisfies the take for many different consumers, ranging from the healthy diet apprised consumers through Diet Coke to the average humankind through its best selling drink unbendable Coke. Most Coke products satisfy all age groups as it is proven that most people of different age groups consume the Coca-Cola product. This market is relatively large and is open to both genders. A marketing organization can adopt one of the three market-coverage strategies Un-Differential secern Concentrated (Kotler, Adam, Brown, & Armstrong, 2006)The most apparent manner utilise by Coca Cola is with no disbelieve the differentiated marketing regularity as Coke satisfies a t rim of different markets. Diet light speed satisfys the weight consciousness, regular coke, sprite, fanta, coffee, iced tea etc for average user group. Each product of beverages satisfies a particular group of people. Differentiated Marketing is delimitate as A market coverage strategy in which a marketing organization decides to target several market segments and designs separate offers for each. (Kotler, Adam, Brown, & Armstrong, 2006) create THE MARKETING MIXThe marketing merge is believably the most crucial stage of the marketing cookery process. It is also known as the 4 Ps of marketing. In 1964 Neil H. Borden published his article The Concept of Marketing Mix after which this term became popularized. This is where the marketing tactical manoeuvre for each product are determined. The marketing flow refers to the combination of the four strategies Product Strategy impairment Strategy Place Strategy Promotion Strategy pic (NetMBA) The most successful businesses have continually monitored and changed their marketing mix due to internal and external factors.PRODUCT STRATEGY A product can be defined as Anything that can be offered to the market for attention, acquisition, use or consumption that might satisfy a want or a need. It includes forcible objects, services,, persons, places, organizations and ideas. Businesses must think about products on three different levels, which are The Core Product The actual product The Augmented Product Coca Cola customers are buying a wide range of soft drinks. Consumers will buy the coke product because of the high standards and high quality of the Coca-Cola products.The Coca-Cola also offer a help line and complaint audio service for customers who are not satisfied with the product or wish to give feedback on the products. put lay is the process of creating, the image the product holds in the mind of consumers, relative to competing products. Coca-Cola and Franklins both make soft drinks although Frankl ins may try to compete they will gloss over be seen as lower market from Coca-Cola. Positioning helps customers understand what is unique about the products when compared with the competition.Branding The popularity of the brand is often the deciding factor. Over the time Coca Cola has spent millions of dollars developing and promoting their brand name, resulting in worldwide recognition. Coca-Cola is the most recognized trademark, recognized by 94% of the worlds population. (Coca-Cola, Our Herittage) PRICING STRATEGY Price is a very important factor in the marketing mix as it can affect both the supply and demand for Coca Cola. The price of Coca-Colas products is one of the most important factors in a customers decision to buy.Price will often be the difference that will baffle a customer to buy the one product over another, as long as most things are about the same. For this reason pricing strategies 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 cost. Price strategies are important to Coca Cola because the price determines the amount of sales and profit per unit sold. Businesses have to set a price that is harming to their customers and provides the business with a good level of profit. considerable before a sale was ever do Coca Cola had developed a look forward to of consumer demand at different prices which without doubt determined whether or not the product came in the market. The pricing strategy a business will use will have to focus on achieving the marketing plans objectives and support the positioning of the product, and load down external factors such as economic conditions and competitors in to account. As customer loyalty has established with Coca-Cola, it can now slowly raise the price of its product. at that place has been a severe pricing competition between Coca-Cola and Pepsi products as each company competes for customer r ecognition 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 give up 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 on that point are four major pricing approaches that can be utilize. Cost-based Approach Buyer-based Approach Competition Approach race Approach Kotler, Adam, Brown, & Armstrong, Priciples of Marketing, 2006) Over the years Coca-Cola has lost strand 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. Now the Coca-Cola has become a market loss loss snuff iter with 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 Coca Cola. extract in the market place, own 60 % of market share by 2007, increase further awareness of product and a return on 20% on capital are the current objectives for 2007. (Coca-Cola, Coca-Cola Company) graze AND DISTRIBUTION STRATEGY The place P of the marketing mix refers to distribution of the product i. e. the ways of acquire 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 factor is the various(prenominal) distribution channels that Coca-Cola has elected to transport and sell its product.Selecting the most suppress distribution channel is important, as the plectron will determine sales levels and costs. The choice for a distribution channel for any business depends on numerous factors, these include How far outside the customers are The type of product being transported The lead times required and The costs associated with transport on that point are four types of distribution strategies that Coca Cola could have chosen from, these are intensive, selective, exclusive and take aim distribution. It is apparent from the popularity of the Coca-Colas product n the market that the business in the past utilize the method of intensive distribution as the product is available at every possible outlet. From supermarkets to service send to your local corner shop, anywhere you go you will find the Coca-Cola products. PROMOTION STRATEGY In like a shots 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. impressive 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 market about who the company is, how good the 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 strategy is the combination of personal selling, advertising, sales promotion and public relations that are used in its marketing plan. Now days as most of the target market is most apt(predicate) to be exposed by media such as television, radio and magazines, Coca-Cola has used this as the main form of promotion for extensive range of products.Although advertising is unremarkably very expensive, it is the most effective way of let the customers to know about Coca-Cola Products. Coca-Cola also utilizes promotions such as contests, coupons, and free samples. These activities are an effective way of getting people to give the product a check. EVALUATION, supervise & CONTROL The goal of the marketing plan is to draft the strategies, tactics, and programs that will make the sales goals outlined in the coke business plan a reality by the end of the season.There are a number of Key Performance Indicators KPIs that are needed for the measu rement/evaluation of the performance they can be given as, The monthly and the annual revenue generation, then the amount of expenses incurred in a month or in a year, then the increased level of customer satisfaction and ensuring the brand loyalty. For complying with these scenarios the advertising efforts do by the company the strength of the distribution channels, the launch of the new products and the pricing will be measured. The possible increase in growth of the target market also depends on all these efforts made by coke.The people who are responsible for the monitor and control of the marketing plan involves, the Marketing Executives, gross sales Managers, Media Managers, Market Research Departments, and the Product Managers. Some activities must be carried out for precisely and closely evaluating the military capability of the strategies and tactics for example the arrive ating and structuring of data regarding market, product, customer and the pricing trends, then th e generation of daily sales report should be maintained and then in the end continuous reconfirming of the marketing budget and activities by the managers of different divisions Financial ForecastsFinancial forecasts are predictions of succeeding(a) events relating strictly to expected costs and revenue costs for future years. There are five major marketing expenditures, which include research costs, product development costs, product costs, promotion costs and distribution costs. gross sales force composite is the most logical method in forecasting revenue. This involves estimates from individual salespeople to sell to work out a organic for the whole business. Once these costs and revenues are forecasted, management can then decide which combination of marketing mix strategies will deliver the most sales revenue at the lowest cost.Implementing Implementation is the process of turning plans into actions, and involves all the activities that put the marketing plan to work. Succes sful carrying out depends on how well the business blends its people, organizational coordinate and company culture into a cohesive program that supports the marketing plan. For its further success, Coca Cola must impose several key changes. Production needs to be on time and meet the quota demanded from wholesalers. It must also be efficient so as not to build inventory stocks and inventory prices. The marketing needs to be motivated and knowledgeable about the product.The forms of promotion such as advertising must be attracting and enticing to the target market to get the greatest amount of exposure possible for the product. This will ensure the success of the product in the stores. Distribution of the product must be efficient. This problem has already been taken care of with convenient transport routes to commercial message areas and transport already being arranged. MONITORING AND compulsive Monitoring and controlling allows the business to check for partition in the budg et and actual. This is important because it allows Coca Cola to take the necessary actions to meet the marketing objectives.There are three tools Coca Cola should use to monitor the marketing plan. They are the following Sales Analysis The sales analysis breaks down total business sales by market segments to hear strengths and weaknesses in the different areas of sales. Sellers of Coca Cola products go from major retail supermarkets to small corner stores. This gives its products maximal exposure to customers at their convenience. Market Share Analysis Market share analysis compares Coca Colas business sales performance with that of its competitors.Coca Cola looks to increase its market share by over 60%. With the changes Coca Cola is currently undergoing, they aim to regain an iron fist control of the market. Target market various age groups and lifestyles from high school students too universities, and male or female. Marketing Profitability Analysis This analysis looks at the cost side of marketing and the profitability of products, sales territories, market segments and sales people. There are three ratios to monitor marketing profitability they are market research to sales, advertising to sales and sales representatives to sales.The results of these three tools can help Coca Cola determine any emerging trends, such as the need for a different product. Comparing these results with actual results gives the business an idea on when to change. Market Research When attempting to implement a new Marketing plan a business must address its target market and deport the relevant information to insure the new marketing plan both differs from the old and is better for the business. When conducting market research a business must first define the problem and then gather the appropriate information to solve the problem.There are 3 types of information a business can gather to solve its problems. Exploratory Research which clarifies the problem an d searches for wa ys to address it. Descriptive Research is used to measure and describe things like the market potential for a product and characteristics of the target market. Casual Research is used to test a hypothesis about a cause and effect relationship. Coca Cola through its market research has addressed all three types of research to define the problems raised by shareholders and gathered information to serve their needs. Factors Influencing Consumer ChoiceWhen reservation decisions on products a business must look at factors that influence consumer choice such as psychological factors, Socio-Cultural factors, Economic factors and Government Factors. Psychological Factors such as motivation, perception, lifestyle, personality and self concept, learning, and attitudes influence the consumers behavior towards a product and Coca Cola has addressed this issue by introducing Diet Coke to satisfy health conscious lifestyles. Socio-Cultural factors such as culture, subculture, socio-economic sta tus, family and reference groups influence the consumers behavior towards a product.Economic factors such as Disposable income and discretional income. Coca Cola has addressed this side of the influence by maintaining a low price on the price of its products. Government Factors such as new regulations, inflation, interest rates all influence consumer outgo and choice. (Alberto, 2007) References Alberto, J. (2007). Strategy Moves. Pearson Education. pp. 145-150 Coca-Cola. (n. d. ). Coca-Cola Company. Retrieved 07 03, 2007, from - http//www. thecoca-colacompany. com/index. html Coca-Cola. (n. d. ). Our Herittage.Retrieved 07 01, 2007, from The Coca-Cola Company http//www. thecoca-colacompany. com/brands/index. html Kotler, P, Adam, S, Brown, L & Armstrong, G 2006, Principles of Marketing, Pearson Education Australia, China , pp. 125, 331 Johnson, M. (n. d. ). Marketing, Market Planning, Market Objectives. 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