COCA-COLA CASE STUDY PDF

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Coca Cola marketing analysis...

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COCA-COLA REPORT

COCA-COLA REPORT

Contents 1.

Executive Summary.......................................................................................................................3

2.

Background......................................................................................................................................3

3.

Situational Analysis.......................................................................................................................4 3.1.

3.1.1.

Strengths............................................................................................................................4

3.1.2.

Weakness...........................................................................................................................4

3.1.3.

Opportunities......................................................................................................................4

3.1.4.

Threats................................................................................................................................4

3.2.

Marketing Environment Analysis.............................................................................................5

3.2.1.

Demographic......................................................................................................................5

3.2.2.

Economic............................................................................................................................5

3.2.3.

Natural................................................................................................................................5

3.2.4.

Technology.........................................................................................................................5

3.2.5.

Political...............................................................................................................................6

3.2.6.

Cultural...............................................................................................................................6

3.3.

Customer Analysis....................................................................................................................6

3.3.1.

Target Market Segment....................................................................................................6

3.3.2.

Analysis off customer purchasing behavior...................................................................6

3.4.

4.

SWOT Analyze..........................................................................................................................4

Competitor Analysis..................................................................................................................7

3.4.1.

PEPSICO...........................................................................................................................7

3.4.2.

REDBULL...........................................................................................................................7

Marketing Strategy.........................................................................................................................7 4.1.

Segmentation and Targeting Strategy....................................................................................7

4.1.1.

Targeting.............................................................................................................................7

4.1.2.

Positioning..........................................................................................................................7

4.1.3.

Segmentation.....................................................................................................................9

4.1.3.1.

Geographic.................................................................................................................9

4.1.3.2.

Demographic............................................................................................................10

4.1.3.3.

Psychographic.........................................................................................................11

4.1.3.4.

Behavioral.................................................................................................................11

4.1.4.

4Ps – Marketing Mix.......................................................................................................11

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COCA-COLA REPORT 5.

Reference........................................................................................................................................13

1. Executive Summary The Coca Cola Company is simply everywhere you look. From the water that you need to survive to the soft drink that you sip on to relax, anywhere you go in the world, everyone knows of Coca Cola. This marketing plan is commissioned to examine all the factors involve in the introduction and promotion of the company best seller: the original coke also known as Coca Cola The Coca Cola corporation is defined to be the most well-known trade mark in the world, and it is justly so. Coca Cola owns over 400 brands that appeal to many different people all throughout the world. CocaCola history began in 1886 when the curiosity of an Atlanta pharmacist, Dr. John S. Pemberton, led him to create a distinctive tasting soft drink that could be sold at soda fountains. Experts have long believed in the connection between happiness and wellness, and Coca -Cola is proud to have played a part in happy occasions around the globe. First, we investigate situational analysis which includes Company Analysis: SWOT Analysis, (Competitive Advantage, Market share); Marketing Environment Analysis: focus on key macro-environment forces; Customer Analysis: description of target market segment and analysis of their purchasing behavior; Competitor Analysis: description of major competitors in the market and their marketing strategies. These analysis has been able to prove that Coca Cola has every opportunity to further promote the original coke to untouched market. Second, after knowing more about the situation the company is in, let us discuss more about how to promote the product. We continue to dig deeper about the Marketing Strategy, containing Segmentation and Targeting Strategy, Positioning Strategy and the Marketing Mix (4Ps). These analysis help us get a better view on how to execute the goal of expanding the company’s market share and get more people to realize what we have to offer.

2. Background Coca-Cola is one of the world famous and largest brands in beverages industry. The company was established Doctor John Pemberton who was a pharmacist in 1886 in Atlanta, Georgia USA. The brand has since become household drink in over 200 countries across the globe. Carbonate drinks are the single largest component in Coca-Cola Company which account for about 78% of the total volume sold in the 2008. The company has over 3000 beverages products and has about 500 brands in its portfolio these includes Coca-Cola/Diet Coke family, Coca-cola enterprise (CCE) wide range of carbonates includes Fanta, Lilt, Sprite and PowerAde, plus the Schweppes brand in the UK according to keynote report[CITATION UKE18 \l 1033 ]. It manufactures, markets, and sells non-alcoholic beverages which include sparkling beverages and still beverages such as waters; enhanced waters; juices and juice drinks; ready-to-drink teas and coffees; and energy and sports drinks. Its brands include Coca-Cola, Diet Coke, Coca-Cola Zero, Fanta, Sprite, Minute Maid, Dasani,… It operates through the following segments: Eurasia and Africa, Europe, Latin America, North America, Asia Pacific, Bottling Investments, and Corporate. The company was founded by Asa Griggs Candler in 1886 and is headquartered in Atlanta, GA. [ CITATION For18 \l 1033 ]

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COCA-COLA REPORT Coca-Cola, or Coke, is a carbonated soft drink manufactured by The Coca-Cola Company. Originally intended as a patent medicine, it was invented in the late 19th century by John Stith Pemberton and was bought out by businessman Asa Griggs Candler, whose marketing tactics led Coca-Cola to its dominance of the world soft-drink market throughout the 20th century. The drink's name refers to two of its original ingredients: coca leaves, and kola nuts (a source of caffeine). The current formula of Coca-Cola remains a trade secret, although a variety of reported recipes and experimental recreations have been published. The Coca-Cola Company produces concentrate, which is then sold to licensed Coca-Cola bottlers throughout the world. The bottlers, who hold exclusive territory contracts with the company, produce the finished product in cans and bottles from the concentrate, in combination with filtered water and sweeteners. A typical 12-US-fluid-ounce (350 ml) can contains 38 grams (1.3 oz) of sugar (usually in the form of high fructose corn syrup). The bottlers then sell, distribute, and merchandise Coca-Cola to retail stores, restaurants, and vending machines throughout the world. The Coca-Cola Company also sells concentrate for soda fountains of major restaurants and foodservice distributors.

3. Situational Analysis 3.1. SWOT Analyze 3.1.1. Strengths Coca Cola has an incredible brand identity. It’s a home name by millions around the world. You’ll come across at least one of their product in over 200 countries.[ CITATION Kie16 \l 1033 ] Because of their known name, they have strong customer loyalty. The particular taste of Coca Cola makes it easy to identify and hard to find a substitute for their customers. [ CITATION Kie16 \l 1033 ] Over all these years of its existence, Coca-Cola has built an extensive network of Supply chain and Distribution Network. Present in over 200+ countries, it’s because of the strong supply chain and distribution network that you can get coca-cola even at the most remote places of the world.

3.1.2. Weakness Unlike Pepsi, which has branched away from the Soda-only model of revenue, Coca Cola has yet to develop a food or snack. This puts them behind Pepsi in terms of competition since Pepsi has Lays chips and other foods under their belt. [ CITATION Kie16 \l 1033 ] People have become concerned with obesity and diabetes. Coca Cola, as a major carbonated drink manufacturer, can contribute to the obesity epidemic. They haven’t addressed or found a healthier solution yet. [ CITATION Kie16 \l 1033 ]

3.1.3. Opportunities Coca Cola can create new products and diversifies their current offerings. They have the brand identify, customers, manufacturing, and evaluation to back this up. [ CITATION Kie16 \l 1033 ] Coca Cola is in hundreds of countries. They could focus on moving into developing countries with humid temperatures. [ CITATION Kie16 \l 1033 ]

3.1.4. Threats

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COCA-COLA REPORT Consumers are giving up sweetened carbonated drinks and are moving towards health and energy drinks. This change in demand is likely to impact the sales of Coca-Cola as their major chunks of sales come in from carbonated drinks. [CITATION Hea18 \l 1033 ] There are number of local beverage manufacturers that are trying to eat away the market share of CocaCola. Companies such as Starbucks and Dunkin’ Brands Group have managed to place a dent in the company’s market share. [ CITATION Hea18 \l 1033 ]

3.2. Marketing Environment Analysis 3.2.1. Demographic Demography is a study of human is terms of size, density, location, age, gender, race, occupation, and other statistics. Demography is important to a company as people make up markets. Coca cola is produced for people of all genders, races, densities, occupations but not ages. Age is a factor that is relevant as the organization has to obey by certain laws and regulations. Coca cola stated that they will not advertise directly to children and will not be on children’s TV channels since its products have high level of sugar and are unhealthy. [ CITATION Sta15 \l 1033 ]

3.2.2. Economic Markets require buying power as well as people. The economic environment consists of factors that affect purchasing power and spending pattern of customers. Coca cola marketers have to keep track of the economy when there are changes and inflation is one of them. Consequently, Coca cola has been uncontrollable of increasing their prices. They must follow the economy to make profits. With this increase they risk losing customers who cannot afford their products because it is a desired product not a necessity. However, coke’s price has always been affordable to people around the world.

3.2.3. Natural Environmental friendly has always been deeply concerned by the government and society. In many countries around the world, air and water conditions are in danger. Marketers are aware of several trends in natural environment. Coca cola also has some plans to reduce the effects on environment. Firstly, Coca Cola say that they are always looking at ways on how to improve their packaging and use less raw materials when creating them. At the moment they use raw materials like petroleum and other fossil fuels to create their plastic bottles. To reduce their use of these fuels they have create a new ‘Plant Bottle’ packaging which will bring them one step closer in creating a completely petroleum free bottle. They aim to achieve this goal by 2020.[ CITATION Coc15 \l 1033 ] . Secondly, in every can or bottle, it is always stated if they recyclable and how to dispose of correctly without harming the environment. Finally, Bottles/cans which are recycled has a positive effect on environment.

3.2.4. Technology Coca Cola are breaking into other markets with the help of technology. They are doing as much as they can on technical field- produced various applications for smartphones. They created an app called share a coke. The ‘Share a Coke’ campaign first launched in Australia in 2011, and involved changing the traditional wrapping around the Coca-Cola bottle to say ‘Share a Coke with…’ and a popular name. The purpose of the campaign was to create a more personal relationship with consumers and inspire shared moments of happiness. In Australia, the top 150 most popular names were printed onto millions of bottles and the campaign was so well-received other countries around the world adopted it with their own unique twists. For instance, in

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COCA-COLA REPORT Israel the country’s largest billboards were turned into interactive signs which greeted its citizens by name, China also printed nicknames on their bottles instead of first names, providing an even more personal alternative. [ CITATION Coc \l 1033 ] . Moreover, they connected with Sportify. Spotify and the Coca-Cola Company have forged a strategic partnership to promote the music-streaming service as it launches in new countries. In turn, Coca-Cola will feature Spotify in a campaign as the beverage giant looks to double revenue by 2020. Spotify will be the centerpiece of Coca-Cola's "Year of Music" campaign in 2013, said Joe Belliotti, director-global entertainment marketing at the soft-drink marketer. Music has been central to Coca-Cola's efforts to reach teens, a demographic group projected to represent one-third of the global population by 2020. The U.S., China, India, Indonesia, Nigeria and Pakistan are expected to have half of the teen-age population by then. [ CITATION Kie16 \l 1033 ]

3.2.5. Political The political forces that affect Coca Cola are mostly different rules and regulations the company needs to follow in order to not break the law. Coca Cola are monitored by more than 200 governments and health authorities which also includes Muslim countries where Coca Cola need to include a Halal stamp on their product

3.2.6. Cultural The rapidly growing population today has meant that more and more companies can increase their market share and have more business. This is no different for Coca Cola. As different cultures grow Coca Cola grows with them.

Customer Analysis 3.3. 3.3.1. Target Market Segment Coca-cola takes every customer as target and potential who is thirsty. All aged groups are being targeted but the most potential one is the age 18-25 which covers around 40% of total age segment. The products are not based on gender but the result shows that both genders like this brand and use it. Coke segments its products world-wide but mostly in hot area of the world. Coke segmentation also base on income.

3.3.2. Analysis off customer purchasing behavior Culture: Getting your brand’s image and desired advertising message across in a foreign country is a careful balance of cultural knowledge and translations. Coca Cola has demonstrated two ways of doing this. The first one was created for a domestic audience, making members of diverse cultural groups feel included in the advertising message. The second method was to use the members of a foreign culture about which Coca Cola didn’t know much to provide them with social marketing and cultural data to further the company’s penetration of that country’s soft drink and beverage market. Business owners and marketing professionals can take these tips, put them in their international marketing pocket, and utilize them in conjunction with translations by native speakers to effectively reach foreign audiences. Social factors: One of the most important social factors that influence Coca-Cola Company is that more and more people are practicing healthier lifestyle than they used to have. Due to the fact that nowadays people are aware to be healthy, the demand for non-alcoholic beverage products was influenced. Customers are choosing a bottle of water rather than a can of Coke. Therefore there a less people willing to buy Coca-Cola company’s products. Psychological factors: Before customers make their purchase decision, the collect and identify information they needed. Senses delivered by enterprises result in the selective attention of customers.

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COCA-COLA REPORT Customers get information of appearance, sound, taste, smell, touch of a product, and then choose their preferring one. These senses and information finally create sensation and perception in the mind of customers. Sensation and perception create basic acceptation of a brand, and learning and memory enhanced the acceptance. That how the psychological influences a brand, or a product, create to customers. Thoughts and decisions of customers may be affected and changed by the psychological factors and finally the whole customer behaviors are different. [ CITATION Lac14 \l 1033 ]

3.4. Competitor Analysis 3.4.1. PEPSICO Without a doubt one of the strongest coca cola competitors is Pepsi. One of the reasons these brands fight tooth and nail is because both of them are very strong in their distribution and have excellent marketing and sales policies. As a result, you will find that the maximum market share is of these 2 brands – be it any country. While Coca Cola restrains itself to include celebrities or any kind of socially popular individual in its advertising videos, Pepsi is all about displaying influencers. Pepsi has rich history in celebrity endorsement that includes professional athletes and pop stars, now growing to be impacting bigger audiences through collaborating with social media influencers.The list of Pepsi celebrity endorsers comprises Michael Jackson, Madonna, Ray Charles, Beyonce, Britney Spears, Kendall Jenner, etc. [ CITATION Luc18 \l 1033 ]

3.4.2. REDBULL Red Bull gives you wings, q...