Coca-Cola Executive Summary

Company:

By: Marketing Strategy MGMT622

Coca-Cola has been offering products people want at affordable prices for 113 years. This commitment and experience has allowed the company to stay ahead of its rivals. Coca-Cola continues to pursue new technologies that will improve sales and increase availability of products to consumers. However, a recent backlash from the new media regarding smart vending machine technology has left the company fighting to repair its tarnished image.

Key Issue:
An internal and external analysis of the Coca-Cola Co. gives a clear picture of the key issue affecting the company at this time. The new vending machine technology, provides Coca-Cola with many opportunities to increase profits, accessibility to consumers and efficiency. However, the threat of an unfavorable consumer response makes it difficult to continue to pursue such technology. Therefore the key issue affecting Coca-Cola is: The positioning of vending machine distribution

SWOT Analysis:
Strengths: Ranked as the No. 1 soda company Strong Vending Machine Sales Strong Brand Weaknesses: Recent damage to image Opportunities: New vending machine technology can help increase profits and efficiency Sales information received wirelessly from vending machines can be used to improve marketing and distribution efforts Threats: Competition-PepsiCo Media speculation regarding vending machine technology Price War at supermarkets

Alternative Solutions:
1. Coca-Cola should position its vending machine distribution as customer focused. This open ended strategy allows Coca-Cola to introduce new technology in a way that improves consumer acceptance and decreases fears. 2. Coca-Cola should position its vending machine distribution as innovative and interactive. This strategy will attract consumers by catering to their curiosity and desire for new technology. However, fears of technology being utilized to over-charge customers may persist. 3. Coca-Cola should position its vending machine distribution as standard and classic. This strategy will align with consumers current expectations and calm any fears of using new technology to price gouge. However, this will limit the companys opportunities to improve sales and revenue through the use of its new technology.

Recommended Solution
Coca-Cola should position its vending machine distribution as customer focused. Coca-Cola should pursue a positioning strategy that places the customer first. This will improve consumers perceptions and increase acceptance of new technology as it is implemented to improve the consumer experience.

Implications for Marketing Mix:

Product: Improve the style of current vending machines to improve consumer appeal and prepare machines for new technology to increase consumer acceptance when new technology is added Price: Start with pricing strategy that lowers prices during off peak hours and on products with lower volume sales to encourage consumers that pricing strategies are to benefit consumers. Gradually raise prices on all products and stay consistence with price reductions during off-peak hours/days/months. This will allow consumers to fell they are still getting a deal. Place: Place vending machines in locations that are easily accessible and differentiate product placement to suit the location. Promotion: Promote vending machines as the customers personal beverage dispenser. Promote personalization and sell new technology as an enhancement to that experience.