- April 1, 2020
Marketing Plan- Coca-Cola Company Case Study
MarketingPlan- Coca-Cola Company Case Study
MarketingPlan- Coca-Cola Company Case Study
Coca-Colais a beverage producing, retailing and marketing firm whoseheadquarters are located in Pennsylvania, USA. It was established in1982 and has established Franchise all over the planet which theyoperate by providing the syrup concentrate, and then they pack to themarket. This plan will look at Coca Cola’s marketing plan and whatthe firm does to inculcate its brand in the minds of youthfulconsumers as a unique soft drinks producing company.
Coca-Colais said to provide at least 50 brands of drinks to the markets inover 20 nations of the world, which provide over 60 million servingseach day. However, the target market is not discriminative againstage, race, area or gender, as long the demand is sustainably met.There drinks are found in parties, hotels, restaurants, bars,offices, family homes, and any other place a person deems fit toconsume cold beverages. Eventually, it noted that the beverages thefirm provided to the market has felt to attract younger generations,but there also exists drinks meant for specifically older generation.
Bythe year 2010, this company had revenues amounting to $3.5 billionwhile operating earnings were $449 million. Further, net incomeamounted to $809 million, and total assets were valued at $7.9billion. In the UK, the firm had increased sales to 500 millionpounds which was way below the grocery sales recorded in the country(Hansen, 2016).
Thecompany has devised the channels through which it promotes andmarkets its products. The ways include first, the print media hashad a particular way to add the adverts in their magazines, journalsand newspapers. That was meant to reach those who are good readers ofthe print media, and thus the advert strikes them creating someinterests in those people. Secondly, television commercials are usedto give the clear picture of what the company products are, byshowing the utility consumers would derive if they consumed theproducts. The ads create long-term memory and customer loyalty asmost people keep longer memories of what they see than any other modeused. Thirdly, the company has become one of the major sponsors inthe local sports industry. A case in point is the 2010 hockey cup inPennsylvania where our company was part of those who sponsored thewhole event (Hansen, 2016). That creates the awareness of theexistence of the company and the commodities it produces, retails andmarkets and this can extend to the youthful consumers relatedactivities.
Threecompetitors have been identified but with different running in theirbusiness. The main rival whom we hope to catch up with is Coca-Colawhom we follow closely as they produce nothing else than soft drinksand we have also followed the footsteps. The other rival is PepsiCo.While our company relies on revenues from producing non-alcoholicbeverages, PepsiCo has fifty percent reliance on its snacksproduction. The last competing firm is Dr Pepper Snapple (DPS) whichhas huge sales compared to those of Coca-Cola. Basing on thisanalysis, the future of the firm should be on the young generation ofbetween the ages of 12 and 35.
Thepowers of the firm are enumerated as its franchise is universallyavailable in at least 20 states around America it is the secondbiggest soft drinks seller in Pennsylvania the brand has acquiredthe traction needed showing the trust from the consumers. Also, itdoes not disregard of any gender in job induction the brand isbecoming valuable among others and the name has been associated withlocal events like sports and in particular hockey.
Monthlytactics are strength where the company in a month launches 4 newflavors and products. After every three months there is a launch ofnew TV commercials and promotional videos on new goods and inductionsfor the succeeding seasons.
Thecompany has failed to diversify into producing accompaniments andsnacks as the rivals have done. PepsiCo is said to earn 42% of itsrevenue from snacks and the remainder from beverages. Also, politicalinvolving has been affecting the productivity of the production staffas it exerts a lot of pressure on them thus the management is advisedto avoid political intervention.
Thebeverage company should develop specific and appropriate goals to beachieved in the course of the operations targeting the youths. Thecan relate to their overall vision and can include Maximumconsumption of the beverages they produce by the young people havingtheir products in at least every available outlet frequented by theyoung generation, and invest more in research and development aspertains the needs of the young generation. Also, the goals of thecompany include spending on natural sweeteners for health and safetyof the customers enlightening the consumers on the exact amount theyare consuming in each serving and meeting global needs of havinglow-calorie foods on the market. This message can also be addressedto the young consumers.
Thecompany has come up with statements and slogans which consumersassociate the company with and thus a selling policy for the firm.Those being part of the strategies we enumerate them herein as one,affordability, availability, and acceptability of the brand. This tooshould reach the targeted young consumers. They should have theslogan well set in the mind of young people that everywhere one goesand wants to have a drink the brand is available, at an affordableprice. The second strategy is having a continued development andexpansion as necessary so as to cope with the global market in whichthey have tapped loyalty. That helps them to retain the customer basethey have and wish to continue with the same trend with the youngconsumers.
Thirdly,the company conducts reviews on its business plan. The response theproducts get and plan on the way forward, thus getting to understandthe market progress and development and what to improve so as to meetthe demands of the younger generation is important. The fourthstrategy for this firm is providing training sessions of tools andplanning to the associates. That helps in enhancing good performanceon the ground which ensures product information reaches the unreachedand also reminds those who know them to consume more and encourageothers to drink. The fifth strategy has a leadership team thatengages every stakeholder for progressive ideas.
TheCompany has had a great strategy but has kept the young people out inthe cold as their promotions are conservative and not much of fancytypes as the young generations would require. On the internetplatforms where the young visit more, there is a deficiency of thepromotions which we seek to improve and tap the potential youngcustomers. You tube will be our next entry point to upload our videosand commercials as ads while one tries to view a main upload, one iswelcome by the advert. We should also sponsor parties and raves forthe young people and make them feel part of the development as onrare occasions do we have parties by soft drinks companies asalcoholic beverages companies do it. The marketing plan is the keypillar for our company and it is the one that helps us learn whatother companies do to succeed in the market. Thus, we shall bereviewing it bi-annually.
Hansen,J. T. (2016). Constructing a Product Brand Identity: The Case ofCoca-Cola.
McDONALD,M. A. L. C. O. L. M. (2016). 5 Strategic marketing planning. Themarketing book,
McKay,Betsy (2009). “Coke to Omit ‘Classic’”. The Wall StreetJournal.