Strategic Market At Coca Cola Company

Strategic Market At coca poop companion1.0 Introduction and Backgroundcoca final ca practice sessiont gage Comp whatever(prenominal) is one of the star(p) manufacturers of sort imbibe in the complete humans. coca cola was launched in May 1986 by Dr. John S. Pemberton in Atlanta Georgia. The name coca plant locoweed was suggested by Dr. Pembertons book controler, frank Robinson. He reserved the name coca plant smoke in the f number 1ing script that is well-k at explodeicipaten today. The coca plant sess is most important manufacturer, tradeer, and distributor of non-alcoholic beverage concentrates and syrups, community in the World, which argon used to produce nearly 500 beverage flaws that grass up for its wide portfolio. The grocery store which I shall be investigating is the loopy salute merchandise in the UK, although I think its important that I gestate the whole foodstuff including bats drinks and energy drinks. This is because soft drinks and Energ y drinks atomic fol d consume in the mouth 18 competing with other alcoholic mixer, (2008).This report will focus on a growth sectionalization of this food securities industry and I make chosen the commercialize leader for stimulant drinks, coca poop. I shall be examining market be after forge, and its activities and hardlyifications. Also, marketing surroundings is intromitd, Internal audit, External audit, macro environment, and looking at the product with PESTLE, SWOT Analysis (Internal strengths and weaknesses). Further much, It Includes Porters quintette forces and Ansoffs ground substance, BCG ground substance and other tools and techniques. At the end, I accept addicted terzetto marketing options and recommended approach after these bibliography.2.0 Strategic market squ be upning motionStrategic marketing is a process in which to develop a dodge to cope with competitors, put market opportunities, develop and commercialize natural products and ad vantages, allocate resources among marketing activities and physique an appropriate government activityal structure to ensure the performance desired is attaind. Corporate strategy is a process in which approach to succeeding(a) that involves examination of the legitimate and anticipated factors associated with customers and competitors and the firm itself, aligning policies, practices, and resources to realize that vision, (2010). Planning and conceptions argon devil truly antithetical concepts. Planning refers to the process of developing a perspicuous propose, while the plan is the output from the process. A successful marketing stir up must in integrated strategical marketing planning. Strategic marketing planning is the process of researching a market and its environment to determine the tar nurture market. It involves determine what the tar come in market lacks and the fonts of messages that resonate with that audience. trade is one of the separate elements i n addition to other functions without which the telephoner stinker non hitch success. Therefore, marketing planning is a set of document in which details of action is addicted to achieve the objects set by the steering for a period of one or up to five yr. It could be motifd on selling of any kind of product. Its very important to contain a very fast-growing(a) plan if you ar not an introducer of recent product and still you want to grab the market, (2010).2.1 selling Planning BenefitsMarketing plan comes done a massive process, it starts from a single de fortunement and ends up to management decision, plan must be forever ex lurch able-bodied easy to understand for management to approved it and realize the facts of market strategies for what they want from customer. coca plant pinhead perpetually makes a attractive marketing plan which always looks different from others, for now this marketing plan which is very supportive for the institution is just because it me ets the collect of customer in a very smart way like they introduced a rising Cherry degree centigrade skag which is they want to be market the product by rising style which a customer attract and in like manner get some utilityed for an organisation. If the plan is tally to organisation and customer then it is easy to take decision for management.Plan should be compressed and productive for organization.Plan should be not so farsighted prison term process and not to be very constitutely.Plan should be as per spic-and-span techniques and 3D type as per new multiplication likePlan should be process after researchPlan should be shows new market prices, long life and skill full.If the plan is according to companies prefer so there is no any take on that it could be rejected. Always approach will be positive to make the plan competitive and advance. coca plant sess always looks in those head which argon naughtyly skilled, attractive and sincere with the organisation, to gain the agreement for strategic plan for organization is a very important role for marketing department to extent their plans which be still atomic number 18 in favour of organisation and as before management like the approach to get always new marketing styles, the go around approach for management is that to produced their best efforts to capture the market because now a days there be so numerous competitors in the market if they lack in the advertizement or advance or introducing in new products then it could be easy for other competitors to overcome, (2010).Marketing Planning abutThere ar ten peaks of the Strategic Marketing Planning Process which argon given bellow in prorogues. confuse 1 The Marketing Planning Process setsDescription present 1 Mission StatementAt this stage the board establish a long-term vision for the company. This entails communicating a memorable statement easily understood by employees and other key stake bringers. storey 2 Corporate Obje ctivesAt Corporate Objectives the organisation frame-up the desired take of hitability, crease boundaries, such as products/markets, facilities and size of dig out force and other corporate objectives, such as tender responsibility, corporate name, stock market image, employer image, and so forth pegleg 3 Marketing canvassMarketing study is a structured review of your current marketing activities. It is a systematic review of all the external and internal factors that sacrifice affected a companys commercial performance over a outlined period.Stage 4 SWOT AnalysisSWOT analysis is a tool for auditing an organisation and its environment. It is the first stage of planning and helps marketers to focus on key issues. SWOT stands for strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors. Opportunities and threats are external factors.Stage 5 AssumptionsAt this stage assumptions are made on the rear end of marketing audit and swot anal ysis. Marketing manager must keep in mind it should not too broad.Stage 6 Marketing Objectives and StrategiesIn this stage the objectives and strategies relate to the companies products/services and soils and to the markets you currently/ propose to prosecute in. Objectives are intimately(predicate) deciding what you are offering (selling) and to whom. Strategies are about how you are going to achieve these liaisons.Stage 7 Estimate anticipate ResultsAt this stage to employ judgement, analogous experience, field strains and so on. Also, to turn out out the feasibility of the objectives and strategies in terms of market partake, cost, amplifications and so on.Stage 8 Identify Alternative Plans and MixesIn a strategic marketing plan, It is normally at this stage board identifies alternative plans and mixes are considered.Stage 9 cipherThe budget is the process of documenting the pass judgment cost of the proposed marketing plan. To justify all marketing expenditures from a zero base each kinfolk against the task that you wish to accomplish. In reality budgets are often incremental, that is, they are based on what was spent in the preceding year.Stage 10 First Year Detailed Implementation planThis may involve spending money on advertising, launching new products, interacting with potential new customers, opening new retail outlets etc. Its study function is to determine where the company is, where its wanted to go and how it can get there. It should be used as an aid to effective management, (McDonald 2006, p. 379-393).I fork up described all activities and justification in the Marketing Planning Process which are given bellow in table.Table 2 Activities and apology in the Marketing Planning ProcessStageActivitiesJustificationStage 1 Mission StatementBoard meetingsObjectives discussionTarget of the companyMotivate employees and customersLack of motivation and outputIt gives the direction to the companyStage 2 Corporate ObjectivesFinancial foreca stProvide long-term perceptual constancy netability of the productsPredict financial forecastingOverall company trading operationsIt gives review policies and desired level of profitabilityStage 3 Marketing AuditMarketing environment objectivesPerform STEEPLE Analysis op rig and Market allocateCompetitive advantagesExamine internal and external breeding and proceduresLife cycles for major products and for market segmentsPolicies and competitive advantages of other organisationStage 4 SWOT AnalysisTrend in the market familiarity of the businessValue added by competitorsSetting objectives and strategiesData Collectiondirection internal and external key factors such as, internal strengths and weaknesses and external opportunities and threats.A summary of reasons for good and bad performanceStage 5 Assumptions administration policiesEconomic dataMajor competitorsPrice competitionIt is made on planning environmentPick the regenerate market and sell the right productsIt emphasises o n success factorsStage 6 Marketing Objectives and Strategiesgross receipts promotion objectivesMarketing objectivesPricing objectivesAdvertising objectivesSocial responsibilityMarketing objectives and Strategies are made on marketing planAdvertising, price and promotion service levelsHighlight sales value, sales volume, percentage penetration of outletsStage 7 Estimate Expected ResultsEmploy judgmentAnalogous experience battlefield testGap analysis on actual and desired resultsTo test out the viability of market shareAt this level managers set the expected resultsStage 8 Identify Alternative Plans and MixesMotivate alternative strategies enkindle mixesManage the businessChoose the best tacticsUnderstand what market works and what doesnt workFrom alternative plans managers select best suitable planStage 9 BudgetAdvertising cost and expensive nil baseEmphasis on yearly marketing budget go past their budget more efficiently and effectivelyGet smart about market every year they are i n businessBudget prepare by board of director and marketing managers.Stage 10 First Year Detailed Implementation ProgrammeCustomer plansSales promotion plansGoals are divided into sub goals.Market plans(McDonald 2006, p. 379-393)Target their basal customerFocus on achieving specific objectivesIn sub goals include pricing plans product plans, promotional plans and market plans with objectivesThe External Market Audit and External Environment (Macro) AnalysisIn this section of the report, I lease used some data, of tools and techniques that are relevant to Coca Colas current tycoon relevant examples. External environment is important to marketing decision making. Initially, I pull in shown data on market share and growth of UKs soft drink markets.3.1 External AuditFor scanning external audit and external (macro) environment of Coca Cola I commit used Porters five forces. In this part of report to scanning soft drink panorama in the UKs soft drink market 2 tables are given.From the supra table of UK soft drink market share in 2010, it is sop up that Coca Cola is the market leader among competitors. Coca Cola hold 44% of soft drink market share whereas Pepsi is in the endorsely position by holding tho 23% (2010).From the above table we can see Coca Cola and Cadbury have the most epochal growth rate by 1% in the stick up year and Pepsi and other drinks lose their share by -1%. Fruit Juice has lone(prenominal) 0.04% growth in last year.For analysing external market in this part, I have given Porters (1985) five forces model which is given belowBarriers to founding It involvesImportance of economy of scale, for example, a new Coca Cola drinks. gainsay with established tags, for example, Coca Cola, Diet Coke.High upfront capital costs or legal requirements, for example, intellectual property protection, factories etc.UKs soft drink market is established by some well cognize brands, such as, Pepsi, Cadbury, Fruit juice etc. It is very difficult to ent er in this market by other competitors.Coca Cola has a long history of heavy advertising and this has made it enormous measuring rod of brand equity and loyal customers entire over the world.Substitutes It containsLarge numbers of substitutes, for example, coffee, beer, juices, peeing etc are available in the market for customers but it is countered by brand equity, capacious advertising, and making their product easily available for customers.Coca Cola expand its business in the UK by offering substitutes it selves to protect Coca Cola from competition.Its products and services can be easily substituted with another type of product and service such as public transport beingnessness used instead of common soldier transport.Buyer Power It consists ofLarge hail of buyers, for example, Wal-Mart or Tesco.Undifferentiated brands and low switching costs.As there are many soft drinks in the UK, so the bargaining power of buyer is extremely very exalted.Buyers ability to walk away o r get an alternative, if buyer does not satisfied with our products or services he can get an alternative products or services.Supplier Power It includesSupplier does not depend on one or a small amount of buyers.Supplier product is necessary to buyer.In the UK, soft drinks bargaining power of supplier is low, as the market size is large so suppliers always want to keep contracts by providing low price.A large number of buyers but a small number of suppliers.Most of the times mad materials needed to create concentrate are basic commodities, for example, colour, flavour, additives, sugar etc. Basically, these are the main commodities.Existing Competitors It computes the degree of competition between lively competitors. Rivalry will be higher ifIn the UK, there are a broad amount of similar sized companies, for example, Pepsi, Robina, Red crap etc.Competitors can lead to a dynamic periods of aggressive pricing and promotion in war for customers.Products and services are supposed a s a commodity by consumers and resulting in low switching cost for consumers.3.2 External (macro) Environment AnalysisPESTEL Analysis for external (macro) environment of Coca Cola. PESTEL Analysis undertaken to understand local, global factors influencing business and potential opportunity and threats. here(predicate) PESTEL analysis given bellow in a tableTable 1 PESTEL AnalysisPoliticalEconomicalNational Government regulative bodiesTrade AssociatesGovernment StabilityNewly IndustrialisedEmployment impartialityCritical Global MarketImportant Political EventsMarket expressionGovernment PolicyTaxationInterest RatesPersonal manner of speaking RatesMoney SupplyInflationDisposal IncomeSocial-CulturalTechnologicaluniverse DemographicsCultureAttitudes to Work and LeisureCurrent IssuesIncome DistributionSocial Mobility life-style ChangesLevel of EducationProductsMaterials / ComponentsProcessesDistribution / Spending on ResearchMarketing/AdministrationRates of ObsolescenceNew Discoverie s / Developments / Product InnovationsLegalEnvironmental contender LawHealth and SafetyEmployment LawNational and World LegislationTrading PoliciesRegulatory BodiesGlobal contendmingEnvironmental Issues topical anaesthetic and National IssuesCurrent and Future Environmental Legislative ChangesRecycling Considerations root system http//www.slideshare.net/Jackieken/the-marketing-audit-download-pptPolitical Factors Coca Cola operates globally and their performance is influenced by the political stability and instability of these countries. There is currently political stability in the UK and Coca Cola business is flourishing, (2010).Economical Factors High inflation in any of the counties will cause the price of Coca Cola to rise and consumption of Coca Cola may fall. The UK economy is recovering from recess and employment level is rising people will consume more Coca Cola products, (2010).Social Factors Consumers in the different counties will have different taste and perception ab out Coca Cola. In the UK the brand is known for quality products and marketing it will be easier, (2010).Technological Factors The present environment is technological driven and the need for dynamic development. Coca Cola has got experienced research and development (RD) team who find out new technologies to improve productivity, (2010).Legal Factors The Coca Cola family gets all the rights applicable in the nature of their business and every invention and product developments are always going into the copyright process, (2010).Environmental Factors According to the data of the Coca Cola Company, all the services are strictly approved according to the environmental laws inflicted by the government, (2010).3.3 Changes in the External (Macro) EnvironmentThe Coca Cola Company has faced many throws in the external environment that have changed the management of the company. During the World War II, the Coca Cola was able to come up the position of the company, at the same time. The Coca Cola was able to enter fresh markets despite of the environment. The company turned out to be more aggressive through supplying free drinks for the GIs in the World War II. During this the corporation was able to hit two birds at one stone. First, because the change drinks sent by the company, it became a loyal symbol by the get together States soldiers in which guided to consumer loyalty. Second, the Coca Cola was able to get benefit of the situation and determined the product in newly occupied countries by the Helper forces and collectable to the company created plants in different locations in the whole World paving the method for its post war expansion.Another thing is that, the external environment is the change of flavour and believes of the consumers. In the mid-1980s where the Americans favoured the sweet flavour of the competitor product, the company made its complement but it turned into a commercial failure. Coca Cola changed its management strategy and restored t he old formula, and just changed its name, such as, Coca Cola Classic. After that Coca Cola got its position again and it released latest versions of Coke that address the needs of these kinds of customers, These products are include by Diet Coke and Coca Cola Zero.According to Bool, (2008) companies, for example, Coca Cola is necessary to change due to trends that have a great impact on its business another trend is wellness and fitness. some people are spending extra money on their health In addition, Coca Cola launched its new products which are a large calorie burning soft drinks, such as, Enviga, Diet Coke, Coca-Cola Zero, and Coke. Furthermore, Coca Cola is running(a) together with the Swiss company Nestle. Coca Cola is contracting with pattern and change. For the duration of the Asian Financial Crisis, Coca Cola was also prompted to change its courses of management in that specific region. The responses and reactions of Coca Cola with the external environment are its i nternal changes.Organisational Change Management This theory presents a universal process for managing the change in the side of the people at an organisational level (Kotter, 1996). According to Hiatt and Creasey, the organisational change management is contains three stages, which are, preparing for change, managing change and reinforcing change. The theory of organisational change management was efficiently used by Coca Cola. Various managers in different branches of the World have operated organisational change management in graze to address the matters that the Coca Cola faced. According to the current stage, the main emphasis of the Coca-Cola is to get the needs of their consumers with outstanding product developing and product distribution. Coca Colas change management is very weak since Coca Cola forecasted that there are a number of marketing challenges in the near future that they have to face.3.4 Internal Audit (SWOT Analysis Strengths and Weaknesses Analysis of Coca Co la)This part of report provides information about current and previous years profit and loss history data, market share data, performance graph which have indicated internal or operational strengths and weaknesses of current marketing strategy and BCG Matrix.Profit and loss account indicates operational excellence of current marketing strengths. We see a consistent growth in the profit margin. In 2009 profit after tax was 4,318 and in 2010 it became 7,415. It is attachd by 3,097 million pounds in a year.Market share of UKs soft drinks Analysing market share of UK soft drinks, it is clear that Coca Cola is the market leader by get 44% of total market. The comparative positioning of Coca Colas market share with respect to other leading players in the market has been illustrated as follows, (2010). process Graph Performance graph of Coca Cola and Pepsi over the last five years can be summarised with the help of growth in following key indicators, (2010).This graph clearly shows that Coca Cola in 2006, it was slight increase in profit margin but in 2007 it was slightly decrease. From 2008 to 2010 market growth of Coca Cola was increase year by year.Internal Strengths of Current Marketing StrategyCoca-Cola has been an intricate part of American culture for over a century. The products image is laden with sentimentality, and this is an image many people have taken deeply to heart.Coca Cola is a very recognizable firm. Its products/brands are available everywhere in the World. Its best-selling(predicate)ity is one of greater strength is virtually incomparable.Coca Cola deals with huge amounts of money every year. Similarly, whole businesses they have had their ups and downs monetarily, but Coca Cola has done very well in this section and Coca Cola will go on to do well and make best than its competitors (Pepsi). The money they are earning, it is significantly better than most beverage companies (competitors), they use into their own company so that they can get well, (2010).Everybody is known very well Coca Cola in the World. Its image is displayed on hats, collectable memorabilia and t-shirts. There is no doubt, no beverage firm (competitor) compares to Coca Colas social popularity status. And this extremely recognizable branding is one of Coca-Colas greatest strengths, (2010).Even though, Coca Cola controls almost 44% of the whole drinks market, the changing health-consciousness attitude of the market could have a serious effect on Coca Cola.In addition, according to Bettman (1998), Coca-Colas 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 managed 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, (2010).I nternal Weaknesses of Current Marketing StrategyCoca Cola has many weaknesses they need to be finished these weaknesses, if they want to increase the next level. Now a days, constant shift to health products, some products could probably lose customers. This fresh focus on weight and health might be a problem for the item that is labelled noxious to your health, (2010).Coca-Cola has recently reported some declines in unit case volumes in Indonesia and Thailand due to reduced consumer purchasing power. According to an article in (Fortune magazine), in Japan, unit case sales fell 3% in the second quarter scary because of Japan produces around 5% of worldwide volume, it contributes three times as much to profits. Latin America, Southeast Asia, and Japan account for about 35% of Cokes volume and none of these markets are performing to foresight (Mclean, 1998).Word of mouth unluckily is something that is very difficult to control. Although, people would have their views, Coca Cola has to try to control their negative views. If bad views are extinguish to people who have yet to try Coca Cola products, after that could create lost of customers which shows why word of mouth is a weakness, (2010).Coca Cola produces many drinks, some are very popular such as, Coke, Diet Coke and Sprite but Coca Cola has approximately made 500 different types of brands, such as, carbonates, energy drinks, sports drinks, yield juices, water etc. Most of them unknown and rarely seen for available purchase. These drinks do not mostly taste bad, but are rather a result of low profile or nonexistent advertising, (2010).As we know, health is a significant matter in 21st century. Coke have high level of sugar and caffeine content.Boston Consulting Group Matrix (BCG Matrix)The BCG matrix method is the theory to determine list of priorities that should be given in the product portfolio of a business unit. There are two dimensions should be analyzed in the implementation of this method market sh are and market growth. There are four characters in this diagram personify four categories of products in companys portfolio, which are given bellow.Stars It represents the products that have a high market growth and high market share. Products in this class commonly need a fairly high cost in the process of development. For example, Coca Colas bottled water (Dasani).Question Marks It represents the products that have a high market growth and low market share. In this category, products have the defeat cash characteristics because they have high level of the demand but low returns because of their low market share. For example, Coca Colas energy drink brand (Full Throttle). cash in Cows Cash cows represent the products that have low market growth and high market share. In this class products should have huge level of profits and cash generation. In order to achieve that result, company should keep their level of investment low because the market growth for these products also low . Such as, namesakes soft drink (Coca-Cola).Dogs Dogs represent the products that have low market growth as well as market share. Products in this category will absorb a lot of cash but low level of returns because low provided market share and weak market growth. For example, unfermented juice drinks (Hi-C), (2010).Coca Cola would use income from Coke to invest their in the beginning in Dasani and Full Throttle, whereas, looking to sell off Hi-C to some private equity fund with huge amount of cash on its hands. It is able to standard product life cycle tends to have five stages which are given bellow.DevelopmentIntroductionGrowthMaturityDeclineAs a result, Coca-Cola is presently in the maturity stage, which is evidenced mainly by the fact that they have a large, loyal group of stable consumers. In addition, cost management, product differentiation and marketing contain more important as growth slows and market share becomes the key determinant of profitability. In international m arkets the product life cycle is in more of a growth trend Cokes advantage in this section is primarily due to its establishment strong branding and it is now able to use this part of stable profitability to support financially the domestic Cola Wars, (2010).4.0 Ansoffs MatrixThis Matrix was developed by Igor Ansoff it is one of the most well known frameworks for deciding upon strategies for growth. It is a tool that helps the company to decide their product and market growth strategy. It is determined by two scopes of option which are products and markets. It consists of market penetration, product development, market development and diversification.Market Penetration Selling more of an existing product to an existing market. It is going deeper into a market, such as, coke and diet coke. Coca Cola in UK is doing market penetration through the selling its products to the business buyers and retailers who are huge multinational organizations like Tesco, Asda, McDonalds, Subway, KFC a nd many more.Market Development Selling an existing product in a new market, for example, taking out various bottle sizes to attract different buyers. It is called market development. Many flavours of Coca Cola are not being sold in every shop, retailer market and other business buyers. Coca Cola can develop a new market if they introduce those flavours in their market.Product Development Selling a new product to an existing market. It is called product development, such as, creating changes to a product, for example, a new flavour like Coca Cola Vanilla. Coca Cola Company can do product development by introducing the new flavours in UK which are not sold anywhere in the World by the Coca Cola company.Diversification Selling a new product to a new market. This is called diversification. Coca Cola recognized the need for a new sports drink and introduced PowerAde. Coca Cola can produce new products, which are not manufactured by it before. Coca Cola is only dealing in beverages but i t can also produce its own snacks item as the Pepsi is manufacturing Lays which are eaten with the beverages, (2010).New Marketing StrategyIn this section of report, I have discussed three marketing strategy options that the organisation ca