Marketing Strategy vs Tactic - Coca Cola vs Toyota PDF

Preview

Summary

With reference to two organizations that compete in different industries, discuss the difference between marketing strategy and marketing tactics and explain what factors marketers take into account when setting marketing objectives, and devising and implementing marketing plans...

Description

“With reference to two organizations that compete in different industries, discuss the difference between marketing strategy and marketing tactics and explain what factors marketers take into account when setting marketing objectives, and devising and implementing marketing plans.”

Contents Coca-Cola and Toyota...................................................................................................................1 Coca cola.....................................................................................................................................1 Introduction............................................................................................................................1 Competing industry of Coca-Cola........................................................................................1 COCA COLA SOURCES OF COMPETITIVE ADVANTAGE........................................1 Toyota..........................................................................................................................................3 Introduction............................................................................................................................3 Competing industry of Toyota..............................................................................................3 Marketing strategy and marketing tactics of Coca-Cola and Toyota.......................................4 Distribution strategy in the Marketing strategy of Coca Cola..............................................5 Brand equity in the Marketing strategy of Coca Cola...........................................................6 Competitive analysis in the Marketing strategy of Coca Cola..............................................6 Marketing strategy of Toyota...................................................................................................7 Penetration Pricing Marketing Strategy.................................................................................7 Guerrilla Marketing Strategy...................................................................................................7 Social Media Marketing Strategy.............................................................................................8 Coca-Cola marketing objectives...................................................................................................9 Toyota marketing objectives.........................................................................................................9 Quality Management in Toyota:.............................................................................................10 Quality improvement approach.............................................................................................10 Customer satisfaction..............................................................................................................10 References.....................................................................................................................................12

“With reference to two organizations that compete in different industries, discuss the difference between marketing strategy and marketing tactics and explain what factors marketers take into account when setting marketing objectives, and devising and implementing marketing plans.”

Coca-Cola and Toyota Coca cola Introduction Coca-Cola is the world's most well established brand. It is an American company that earns 15% of its overall U.S. income but is the world's most profitable company. Its products are available worldwide and the most widely-known brand in the world in over 200 countries and territories. Coca-Cola is definitely the most popular brand in the world, I guess. It is fair to argue. CocaCola is not a brand but “The” brand. In general, its image can be better developed and incorporated in all parts of the world. It is the brand where all other companies equate themselves and, to a significant extent, have done more in the history of business than any other organization to be recognized all over the world. [ CITATION Pat19 \l 1033 ] Competing industry of Coca-Cola

Coca Cola is a leading beverage brand in the market. However, the company produces and sells depends on some main forces that have helped build the competitive advantage of a sustainable market. These are some of the strategic advantages that have turned Coca Cola into a global brand. One of the main aspects about Coca Cola is its reputation on the beverage industry, financial power, various flavors and global popularity.[ CITATION Abh18 \l 1033 ]

COCA COLA SOURCES OF COMPETITIVE ADVANTAGE 

Global presence and brand image: Coca Cola's global footprint is one of the biggest strengths. The company operates in over 200 countries. Its name and logo are well known among the vast crowd of brands. The picture of brand is also a crucial force. The brand picture of Coca Cola is linked to the younger generation and reflects energy and youth. This is a crucial strength, demonstrating that it is a brand that young people all over the world enjoy. Much of its clients are between 13 and 35 years of age. Economic development also means higher revenue and higher profits.



Large supply and distribution network: Coca Cola is one of the world's biggest networks of production and distribution. There is also one of the most modern and complex distribution networks. Coca Cola produces and sells bottling concentrates, drink bases, and syrups. It is Coca Cola's bottling partners who produce, package, and product and deliver the finished packaged drinks to their customers and distribution partners. These distribution partners collaborate closely with their clients. The Bottling Investment Company has been formed to invest strategically in such bottlenecks, which it temporarily takes control of Coca Cola.



Marketing capabilities: Coca Cola's strong marketing capabilities are also popular. It has served excellent marketing campaigns for generations which have helped to better connect its customers. In addition to its investment in new media, the brand is renowned for producing massive video ads. Marketing is a crucial factor in Coca Cola's growth of its empire over years.

These are the key contributors to making Coca Cola a leading soda brand. There are a range of significant competition opportunities behind any big brand that allow it to stay at the forefront of

the market. Concurrences are intense in the beverage industry and unless Coca Cola was lagging behind Pepsi, its closest rival, for these great strengths. Its huge portfolio of products and a wide variety of flavors. Excellent marketing skills and high human capital are significant factors, however, on the basis of which the beverage giant continued to expand worldwide. Many such strengths, such as marketing expertise, unique flavors and the large consumer base, are key strengths that, because of its importance and uniqueness, establish either competitive parity or sustainable competitive advantages. The secret recipes of its soda drinks in particular provide a sustainable competitive advantage for it. [ CITATION Abh18 \l 1033 ] Toyota Introduction The TOYOTA Motor Corporation, which is founded in 1937, is a Japanese company engaged in the development, manufacturing, installation and sale, mainly in Japan, North America, Europe and Asia of passenger motorcycles, cars, commercial vehicles, and associated components and accessories. Toyota, Lexus, Daihatsu, and Hino are currently on the market. Toyota is the largest automotive maker in the world the world's eighth largest producer and company. As at 31 March 2013, annual revenues of $213 billion and 333,498 employees were processed by Toyota Motors Corporation. [ CITATION The13 \l 1033 ] Competing industry of Toyota

In the automobile industry, Toyota Motor Corporation competes. For car makers, the last five years have been turbulent. Higher fuel prices and increasing environmental issues have changed customer preferences from pickup fuel to smaller, more fuel efficient vehicles. The price of fuel

has risen. Some car manufacturers took up the shift by expanding Small car portfolios and diversification of electric hybrid motor vehicle manufacturing. Other automakers were hesitant to change their emphasis from big to small cars. They expected that the fuel would inevitably contract and that buyers would return to the large car fold. Due to the US financial crisis that struck the world economy when fuel prices dropped during the second half of 2008. In the developing and emerging worlds, it had a domino effect for several west countries In crisis, nations after the USA. In 2009, industry revenues decreased by about 15.4%. The pent-up demand is projected to raise the sales growth in 2013 of 2.1 percent to an estimated $2.3 trillion in total revenue. Over the five years to 2013, the major decreases followed by the recovery are projected to give the industry average growth of 2.2 percent annually. In the BRIC countries, growth has supported development over the last five years. Increased wages have contributed to increased demand for motor vehicles in these countries. Western automakers have also moved manufacturing plants to BRIC countries in order to reach these markets and take advantage of cheap production. Emerging economies will continue to develop over the next five years and demand for motor vehicles will rebound in the West. In the five years to 2018, industrial sales plan to rise by 2.5% to an estimated $2.6 billion in total. [ CITATION The13 \l 1033 ]

Marketing strategy and marketing tactics of Coca-Cola and Toyota Marketing strategies of Coca-Cola In terms of operations, costs management, brand portfolio, channel marketing and collaborative customer relations, Coca Cola has a strategic advantage over its rivals.[ CITATION Hit18 \l 1033 ]

Operations: The bottling process is outsourced to the FEMSA franchisee, the largest Coca-Cola Bottling franchisee in the world. In the case of underdeveloped noncarbonated beverages and strategic acquisitions, it allows the company to achieve significant growth prospects by signing deals to jointly acquire companies with the company Coca Cola. Cost control: It’s diversified product range, operations outsourcing & scale economies allows him to reduce his operating costs and to boost earnings. Strong brand portfolio: It’s diversified product range, operations outsourcing & scale economies allows him to reduce his operating costs and to boost earnings. Company offers its consumers a strong and diverse variety of drinking items and is actively exploring promising categories of drinks to catch growth on its various markets. Its drink portfolio is composed in some markets, including Brazil, of carbonated soft drinks, bottled water, juices, orangeade, iso tonics, teas, power drinks, milk, coffee, and beer. Collaborative customer relationship: Coca Cola firmly believes in the development of universal principles for all participants in participatory marketing. Adapting its wide range of goods and packages for its shops, based upon the socio-economic demographics of the local market, appropriate consumption opportunities and the characteristics of the shop. Distribution strategy in the Marketing strategy of Coca Cola Depending upon industry, regional conditions and consumer profile, it uses many market and distribution models (1) the machine pre-sales separating the sales and delivery functions enabling the loading of trucks with a mixture of goods previously ordered by consumers to maximize production both in terms of sales and distribution;

(2) A traditional lorry route system whereby the individual responsible for distribution makes immediate inventory sales on the lorry available, (3) A hybrid distribution system, where the same truck holds immediately available merchandise for sale and the pre-sale product. (4) The telemarketing device that could be paired with a visit before sales. (5) Sales through wholesalers of the goods from third parties.[ CITATION Hit18 \l 1033 ] Brand equity in the Marketing strategy of Coca Cola Coca Cola is the one brand that everyone in the world knows. When we speak about brands, it is their meaning and it's about stories, memories, connections and human relations, but over many years’ talented marketers and countless Board meetings have, of course, very carefully and intentionally built these links up. Coca-Cola is the master for over 100 years now. This is something. This equity stems from the ability of people to pay a brand premium and the inadequacy to consider replacements. The marketing strategy of Coca-Cola always has been to mix happiness, positivity and good life with your goods, so that you can deliver high top of mind awareness. [ CITATION Hit18 \l 1033 ] Competitive analysis in the Marketing strategy of Coca Cola Big giant drinks have common strategy and priorities in the nonalcoholic drink field which can allow businesses to distinguish between themselves through creativity and innovative marketing. The other key challenge the company now faces is competition from local players. Pepsi is CocaCola's largest rival with products in the industry. [ CITATION Hit18 \l 1033 ]

Marketing strategy of Toyota Penetration Pricing Marketing Strategy Toyota's marketing strategy currently is known as penetration pricing. The goal of the marketing strategy for penetration pricing is to increase revenue and gain large market share within the competitive market. The marketing strategy for penetration pricing aims to gain broad market shares quickly through the low prices set for goods sold by a company. It is best to apply penetration pricing when the customer is responsive to commodity price. Toyota's use of the marketing technique for penetration pricing, which means Toyota offers its vehicles at a low price range. This approach targets customers who are pricing sensitive. As Toyota introduced the Yaris Subcompact car manufacture to the European market, Toyota used the penetration price marketing technique. The business was able to compete with other leading automotive companies such as Ford, Volkswagen, Renault and Vauxhall with Toyota's use of the penetration price marketing strategies for its Yaris automobile production. [ CITATION UKE182 \l 1033 ] Guerrilla Marketing Strategy A marketing tactic called guerrilla strategy is another strategy that Toyota uses. Guerrillas include businesses that use innovative strategies to obtain attention of customers. The Guerrilla marketing strategy, moreover, is typically used by businesses that do not have financial resources for other well-known marketing strategies or more successful marketing strategies as a fairly new marketing technique. Developed companies such as Toyota and Pepsi use a marketing strategy for the guerrilla even though they are able to bring more successful marketing tactics

into motion. Toyota's participation in the marketing campaign of the guerrillas indicates that Toyota's key reason is to pull the younger audience, that is, young adults, into the guerrilla marketing strategy. This technique is introduced by companies such as Toyota, which put ads on everyday products like food and beverage packaging. Companies like Toyota use alternate marketing tactics for guerrillas such as putting publicity in areas with heavy crowds.[ CITATION UKE182 \l 1033 ] Social Media Marketing Strategy The Social Media Marketing Approach is a further strategy currently implemented by Toyota. Marketing by social media is seen in the marketing world as a contemporary strategy and also as a very successful marketing strategy. Today, several businesses take advantage of Toyota's social media marketing campaign. The use of online technology is part of social media marketing. Social media tools include blogging, social networking and media sharing practices, including Facebook or LinkedIn. Websites for social media (such as Flickr and YouTube). A detailed example of the social media marketing campaign being used by Toyota. Toyota's use of marketing social media campaign by exposing Toyota's membership in a business known as iCrossing. The role of iCrossing in raising awareness of Toyota's 2008 IQ city car. I crossing is a UK-based digital marketing firm. Through using a campaign dubbed 'The Hypermiling Campaign,' iCrossing helped advance Toyota's IQ model car. It is an online group focused on offering advice on fuel saving. The support of iCrossing to encourage development of IQ cars has helped Toyota to make positive progress among online users in the community.[ CITATION UKE182 \l 1033 ]

Coca-Cola marketing objectives To achieve clear targets, Coca-Cola advertising campaigns are introduced. The main goal of the organization is to increase profit and these promotional campaigns lead in many ways to achieving this objective.[ CITATION Pra18 \l 1033 ] 

Sensitization of the business and its goods.



Informing customer and buyer and training them.



Promoting a passion for the goods of the business rather than for the rivals.



Promote product testing amongst potential new clients.



Stimulating behavior increases short-term sales.



Reassuring customers and reinforcing their particular desirable buying behavior.



Generating information from customers.



Creating sales lead.[ CITATION Pra18 \l 1033 ]

Toyota marketing objectives Toyota's fundamental philosophy is to precede the economic environment as a creative and leading automotive business and to offer society a sustainable development and reliable product, ensuring quality and innovation. It focuses on the future of the automotive industry, in order to help this mission, to assess how best the organization should position itself. In line with its environmental and global economy as well as communities it serves, as well as its stakeholders

and shareholders, Toyota strives to achieve long-term, steady growth.[ CITATION Uke17 \l 1033 ]

Quality Management in Toyota: Due to consumer demand for high-quality goods and services through emphasis on quality control for large companies, quality is demonstrated to be an important element in maintaining long-term customer ties and an attiring method to minimize costs for new customers. It will focus on providing global standards of quality management which enables the organization, as well as increasing competitiveness and accountability of its employees, to focus more on customers and the market.[ CITATION Uke17 \l 1033 ] Quality improvement approach As soon as TQM is introduced effectively, a community of internal and external customers must be assured that performance continues to be established. The end result of the product or service is entered by these consumers and so the company meets consumer needs. Toyota uses various approaches or processes, but time consumed by Taguchi techniques, statistical process management and quality assurance, to improve quality and standards. It is time that quality improved and now there is another system, including six of which are known as Kaizen, Six Sigma and the re-engineering of business processes.[ CITATION Uke17 \l 1033 ] Customer satisfaction

In order to complete customer loyalty, Toyota's customers are of prime importance to the company and ensure that all customers enjoy the highest quality of service and quick access to

every investigative report. The customer relations department of Toyota is responsible through all parts of the world for offering customer service for problems, questions, experiences and positive relationships, including telephone or e-mail messages, fax and e-mail, or in person. [ CITATION Uke17 \l 1033 ]

References

Bhasin, H., 2018. Marketing strategy of Coca cola – Coca cola marketing strategy. [Online] Available at: https://www.marketing91.com/marketing-strategy-of-coca-cola/ [Accessed 31 january 2020].

Harper-Joles,...