Marketing Plan of Coca-Cola Part 2

Marketing Plan of Coca-Cola SWOT Analysis Weaknesses: -Word of mouth -lack of popularity of many Coca Cola’s brands -Most unknown and rarely seen -result of low profile or non-existent advertising -health issues Strength: -Popularity -well known -branding obvious and easily recognized -A lot of finance -customer loyalty -International Trade SWOT Threats: -changing health-consciousness attitude -legal issues -Health ministers -competition (Pepsi) Opportunities: -many successful brands to pursue -advertise its less popular products -buying out competition. -More Brand recognition Fig: SWOT analysis of Coca-cola at a glance. 13 Marketing Plan of Coca-Cola SWOT analysis is a technique much used in much general management as well as marketing scenarios. SWOT consists of examining the current activities of the organization- its Strengths and Weakness- and then using this and external research data to set out the Opportunities and Threats that exist. a) Strengths: Coca-Cola has been holding a large part of world culture for a very long time. Coca cola has focused on brand image and brand loyalty along with providing supreme taste and quality. The Coca-Cola image is displayed on T-shirts, hats, and collectible memorabilia. This extremely recognizable branding is one of Coca-Cola's greatest strengths. "Enjoyed more than 685 million times a day around the world Coca-Cola stands as a simple, yet powerful symbol of quality and enjoyment" (Allen, 1995). Additionally, Coca-Cola's bottling system is one of their greatest strengths. It allows them to conduct business on a global scale while at the same time maintain a local approach. The bottling companies are locally owned and operated by independent business people who are authorized to sell products of the Coca-Cola Company. Because Coke does not have outright ownership of its bottling network, its main source of revenue is the sale of concentrate to its bottlers. In Bangladesh, people don’t care before drinking that whether it is “Pepsi” or “Coke”. They don’t actually differentiate between these two brands in order to their tastes. Consumers basically drink what they get. They believe on “WHATS COLD GETS SOLD” Consumer’s availability in brands is basically works like:  Push availability.  Pull consumer’s demand. 14 Marketing Plan of Coca-Cola For this reason Coca-Cola Intl has provided their coolers and freezers in the market. They have maximum number of coolers and freezers in the market. They provide this infrastructure free of cost just to provide chilled coke to their customer, which they want to be purchase. b) Weaknesses: Coca-Cola has had some "declines in unit case volumes in the South East Asia due to reduced consumer purchasing power”. Coca-Cola contains caffeine and caramel which can adverse effects on the teeth (if prolonged) which is an issue for health care. It also has got sugar by which continuous drinking of CocaCola may cause health problems. Being addicted to Coca-Cola also is a health problem, because drinking of Coca-Cola daily has an effect on your body after few years. Another weakness which may be considered regionally is its sugar content. Pepsi Co. makes its sales only because Pepsi is so far, having a larger market share only because it is more sugary and Asian people focus on sugary drinks. c) Opportunities: Brand recognition is an important factor in affecting Coke's competitive position. Coca-Cola's brand name is known well throughout 94% of the world today. The main concern of Coca Cola Marketing Strategies has been just to improvise its system and make it even more recognizable. The bottling system of Coca Cola allows the company to take advantage of its growth opportunities. The coke team has been working strenuously in Bangladesh gaining supporters via Mass marketing and Promotional tools. d) Threats: The main threat is Price. A small increase in price, let’s say just 1 taka will have a drastic effect on sales. Only because people will go for the next available substitute i.e. Pepsi so price change 15 Marketing Plan of Coca-Cola is a major factor in affecting Sales of coca cola and in marginal profits. Coca Cola can face major losses if it goes for a sudden increase or decrease in price. Contradiction: Some analysts assume that new competitors can also have an effect on Coke Sales. But actually, new comers have some what a very less contribution because Soft Drink industry is in itself a very vast and strong industry. New competitors can never make their way up to Coke’s level in an even 10 years to come. A possible threat may be the increasing health awareness. People have recently become more conscious about health issues. 60% of the world’s population does not drink carbonated drinks (due to poverty and /or health issues). Competition The major competition faced by Coca Cola International is Pepsi Co. PepsiCo is a world leader in convenient foods and beverages, with revenues of about $27 billion and over 300,000 employees. The company consists of the snack businesses of Frito-Lay North America and FritoLay International; the beverage businesses of Pepsi-Cola North America, Gatorade/Tropicana North America and PepsiCo Beverages International; and Quaker Foods North America, manufacturer and marketer of ready-to-eat cereals and other food products. PepsiCo brands are available in nearly 200 countries and territories. Major Pepsi Co. products include:         Pepsi Teem Mirinda Pepsi Max Pepsi Lemon Pepsi Blue Mountain Dew 7up Marketing Plan of Coca-Cola Regulars               Product Offering Coke Classic Vanilla Coke Cherry Coke Caffeine free Coke Fanta Sprite Sprite Ice Sprite Duo Coca Cola Black Limca Caffeine free Diet Coke Diet Cherry Coke Diet Coke with Lemon Diet Vanilla Coke Sports Drinks:     PowerAde Nestea Aquarius Vitamin Energy Juices/Water:    Minute Maid Maaza Kinley Energy Drinks:     Full Throttle Barq’s Tab Burn 17 Marketing Plan of Coca-Cola Keys to Success Coca Cola marketing team focuses not only on the results as well as the tasks assigned.  They firmly believe if you want to establish a clear image in the minds of consumers, you first need a clear image in your own mind.  Since the major competitor is Pepsi Co. so Coca Cola Intl has focused on neutralizing the competition.  Kill the category: If Pepsi Co. launched Crystal Pepsi then Coca Cola Intl launched Diet Coke.  The Coca Cola marketing team maintained their focus strongly on the product itself. When they changed bottle shape, many people started buying bottles instead of the drink itself  The Coca Cola team learnt from everything. Even if a customer said “no”, they focused on “why” did he say no and then found out ways on “how” to solve that issue.  Formula for positioning success :  Define  Over deliver  Claim  Succeed  They specified the criteria for each product offered because if you don’t specify the criteria for choosing, consumers will develop their own, which is dangerous. 18 Marketing Plan of Coca-Cola Critical Issues A common criticism of Coke based on its allegedly toxic acidity levels has been found to be baseless by researchers; lawsuits based on these notions have been dismissed by several American courts for this reason. Although numerous court cases have been filed against The Coca-Cola Company since the 1920s, alleging that the acidity of the drink is dangerous, no evidence corroborating this claim has been found. Under normal conditions, scientific evidence indicates Coca-Cola's acidity causes no immediate harm. Coca-Cola has been criticized for alleged adverse health effects, its aggressive marketing to children exploitative labor practices, high levels of pesticides in its products, building plants in Nazi Germany which employed slave labor, environmental destruction, monopolistic business practices, and hiring paramilitary units to murder trade union leaders. In October 2009, in an effort to improve their image, Coca-Cola partnered with the American Academy of Family Physicians, providing a $500,000 grant to help promote healthy-lifestyle education; the partnership spawned sharp criticism of both Coca-Cola and the AAFP by physicians and nutritionists 19 Marketing Plan of Coca-Cola Marketing Strategy Our local marketing strategy enables Coke to listen to all the voices around the world asking for beverages that can span the entire spectrum of tastes and occasions. What people want in a beverage is a reflection of which they are, where they live, how they work and play, and how they relax and recharge. Whether you're a student in the United States enjoying a refreshing Coca-Cola, a woman in Italy taking a tea break, a child in Peru asking for a juice drink, or a couple in Korea buying bottled water after a run together, we're there for you. We are determined not only to make great drinks, but also to contribute to communities around the world through our commitments to education, health, wellness, and diversity. Coke strives to be a good neighbor, consistently shaping our business decisions to improve the quality of life in the communities in which we do business. It's a special thing to have billions of friends around the world, and we never forget it. 20 Marketing Plan of Coca-Cola Marketing Objectives The ultimate objectives of our business strategy are:  To increase volume  Expand our share of worldwide nonalcoholic ready to drink beverages sale  Maximize our long-term cash flows  Create economic value added by improving economic profit. The Coca Cola system has more than 16 million customers around the world that sells or serves our products directly to consumers. We keenly focus on enhancing value for these customers and helping them grow their beverage businesses. We strive to understand each customer’s business and needs, whether that customer is a sophisticated retailer in a developed market a kiosk owner in an emerging market. Aims:  People: Being a great place to work where people are inspired to be the best they can be.  Portfolio: Bringing to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs.  Partners: Nurturing a winning network of customers and suppliers, together we create mutual, enduring value.  Planet: Being a responsible citizen that makes a difference by helping build and support sustainable communities. Profit: Maximizing long-term return to shareowners while being mindful of our overall responsibilities. 21 Marketing Plan of Coca-Cola Financial Objectives All Coca Cola Intl. plants setup their own goal to achieve the objective. The company goal is: “To increase sales volume and gain market leadership in Lahore.” The company aims to achieve sales level of $35, 000, 000, 00 by the end of year 2010. The sales level for year 2009 was $31, 944, 000, 00. Target Markets The target market for Coca cola is very wide as it satisfies the needs for many different consumers, ranging from the healthy diet consciousness through Diet Coke to the average human through its best selling drink regular 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, thereby allowing greater product diversification. Coke’s commercials basically based on young generations, so, the young generation is the target market of Coke because they want to represent Coke with the youth and energy but they also consider about the old people they take then as a co-target market. 22