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Marketing Plan and Research Report of Coca-Cola

Table of Content

Executive summary ........................................................................................................ 2 External environment analysis ........................................................................................ 2 Market strategy .............................................................................................................. 6 Marketing research result ............................................................................................... 6 Marketing mix summary ................................................................................................ 7 Detailed strategy for promotion ...................................................................................... 9 Controls ........................................................................................................................ 11 Reference list ................................................................................................................ 13

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Executive summary

The Coca-Cola Company (“Coca-Cola”) was founded in 1886 which is ranked number one in the beverage industry. The company manages more than 500 nonalcoholic beverage brands, and four of the top five nonalcoholic sparkling beverage brands are owned by Coca-Cola. According to its 2012 annual report, the whole group?s net operating revenue amounted to 48.02 billion USD (The Coca-Cola Company Annual Review, 2012). In addition, Coca-Cola accounts for approximately 37.1% of all the soft drink market, followed by PepsiCo at about 30.2%, and Dr. Pepper Snapple Group at 21.4% (Faber, 2012).

Soft Drink Market Share in 2012 Other11%Dr. Pepper Snapple Group22%PepsiCo30%Coca-Cola37% In the long-standing viewpoint, Coca-Cola has an inclination to expand its market share to 50% and its sales revenue to 500billion USD in the 2015 (Hofstede, 2012). Although its prosperous status quo, the company is also facing against an intensified competition. This report is aimed at analyzing the overall marketing strategy of Coca-Cola to find out the potential vulnerabilities. Then, based upon the analysis and in-depth research, it will outline the strategic plan for the future in order to further enhance Coca-Cola?s marketing status. External environment analysis

A well-rounded analysis of company?s environment will be beneficial for the comprehensive understanding of the situation. First, it is better to research Coca-Cola?s external situation which includes three parts: macro-environmental factors, micro-environmental factors and competitive strategy.

For the macro aspect, this report utilizes PEST model which examines the changes in a marketplace caused by Politics, Economy, Social and Technological factors.

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? Political Analysis

Shifts of government?s attitude towards the foreign-invested enterprise may pose a threat to the company. Especially in the emerging countries, the political stability is essential to a successfulbusiness.In addition, changesof laws and regulations, including non-alcoholic drinks regulation should be considered. ?

Economic Analysis

According to IMF, while there have been some encouraging signs of economic recovery, the global economic growth seems to be losing momentum. In other words, the company still needs to be vigilant to the outside world and the emerging economy to seize opportunities.According to the Standard and Poor's Industry surveys, \major soft drink companies, there has been economic improvement in many major international markets, such as Japan, Brazil, and Germany.\continue to play a major role in the success and stable growth for a majority of the non-alcoholic beverage industry. ?

Social Analysis

Living a healthier lifestyle is so prevalent all around worldthat has affected the non-alcoholic beverage industry as some consumers are switching to bottled water and diet colas instead of beer and other alcoholic beverages. This continued tendency will impact the non-alcoholic beverage industry by increasing the demand overall and in the healthier beverages. ?

Technological Analysis

The rapid advancement of science and technology may deeply impact Coca-Cola as well. For example, novel distribution channel, diversified promotion campaign and new production line etc.

In terms of micro-environmental factors, it is advisable to use Porter's Five Forces model to analyze the market condition.

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Threat of new entrantsThreat of substitute productsIntensity of competitive rivalryBargaining power of suppliersBargaining power of customers

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Threat of new entrants

Compared with other industry, soft drinks industry has a relatively higher gross profit rate and lower barriers to entry, accordingly, there do exist many potential entrants. ?

Threat of substitute products

As is mentioned above, healthier drinking has been a new trend for the consumers. So, enough attention must be paid to the substitute products such as tea drinks, bottled water and sports drinks. ?

Bargaining power of customer

With thousands kinds of non-alcoholic beverage in the market, consumers have a wide range of options. Additionally, they are also becoming sensitive to price which render them to have more bargaining power. ?

Bargaining power of suppliers

As the leading company in the market, Coca-Cola stays strong to the suppliers who are willing to collaborate with such a giant enterprise. In other words, bargaining power of suppliers is comparatively weak. ?

Intensity of competitive rivalry

Relied upon its sales and distribution channels, Coca-Cola has undoubtedly established a mature marketing network. But what can?t be ignored is the threats posed by companies out of carbonated beverage, they all spare no effort to gain

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The negative implication of several media has exerted a relatively profound impact upon carbonated beverage. Accordingly, juice, tea and sports drinks should be the main products for promotions. The company can improve health drink market share by using more personal selling booth and more sales discount or lottery coupon. These activities are effectivefor getting people's short-term attention.

Survey experiment in the Fenwick?s department store also proved the above analysis.

In the survey of consumers? attitudes towards health consideration when purchasing drinks, more than 45% agree with the viewpoints (as is shown in the bar chart below).

In addition, when asked about familiarity, 50% agree with that it plays a major role in purchasing decision.

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Controls Implementation

Implementation is the process on how well the business mixes its people, organizational structure and company culture into a cohesive program that supports the marketing plan (Clark, 2005).

Coca-Cola shouldimplement several major transformations. First, production capability need to be modified to meet the quota demanded. It must also be cost-effectiveto avoid inventory stocks wastes. The marketing team should be aware of knowledgeable management about the product. The styles and types of promotion must be appealing to target customers to obtain the potential amount of exposure for the product. Another thing is efficient distribution network.The pertinent issueis taken care of with expedient transportation routes to commercial areas and traffic. Monitoring And Controlling

Monitoring and controlling allows Coca-Cola to take the necessary actions to meet the marketing goals. There are three methods Coca-Cola may use to monitor the marketing scheme.

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? Sales Analysis

The sales analysis analyzessales revenue by market segmentation to discover advantages and disadvantages in the different regions. Sellers of Coca-Cola products vary from big retail supermarkets to small corner stores. This tool gives the products maximum exposure to customers at their convenience. ?

Market Share Analysis

This approach is a comparison to the major rivals in the relevant market. With the shifts Coca-Cola is currently undergoing, they aim to get an aggressive position to stable its strong power. Target market various age groups and lifestyles from high school students too universities, and male or female. ?

Marketing Profitability Analysis

This methodtakes the cost factor into consideration which deem profitability as a key index. Three ratios can be used forsupervising marketing profitability; they are market research to sales, advertising to sales and sales representatives to sales. These three indicators can assistCoca-Cola determine any developingtendency, such as the requirement for a novel product. Scientific and careful comparison of these outcomes with actual results offers the company a clear instruction.

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Reference list

Alarcon, Camille. (2007, January). Coke grows from zero to hero. B & T Weekly, 6-7 McKenzie, M., Linden, R. W. A., & Nicholson, J. W. (2009). The effect of Coca-Cola

and fruit juices on the surface hardness of glass–ionomers and ?compomers?. Journal of Oral Rehabilitation, 31(11), 1046-1052.

Belch, G. E., Belch, M. A., Kerr, G. F., & Powell, I. (2008). Advertising and

promotion: An integrated marketing communications perspective. McGraw-Hill. Clark, Nicola. (2005). PowerAde eyes feminine appeal. Marketing, 16-17

Flagg, Michael. (2002). Pepsi Siphons Off Some of Coke's Lead In China by Learning

to Pick Its Battles. Wall Street Journal (Eastern Edition), 23(5), 12-13.

Fuhrman, E. (2007, September). Western Europe: A mature market. Beverage Industry,

98(9), 24-26.

De Mooij, M. &Hofstede, G. (2010). Convergence and divergence in consumer

behavior: implications for international retailing. Journal of retailing, 78(1), 61-69.

Harnack, L., Stang, J., & Story, M. (2004). Soft drink consumption among US

children and adolescents: nutritional consequences. Journal of the American Dietetic Association, 99(4), 436-441.

MacArthur, Kate and Thompson, Stephanie. (2006). Pepsi, Coke: We satisfy your

'need states'. Advertising Age, 77(3), 54-56.

Marcial, G. (2007). Coke Sparkles Again. Business Week,15(2), 51-53. The Coca-Cola Company 2012 Annual Review, 12-15

Truini, J. (2007). Beverage maker plans biggest plastics plant. Waste News, 13. (10), 4-4.

Tucker, W. T. (2006). The development of brand loyalty. Journal of Marketing

Research, 32-35.

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