Marketing Process at Coca Cola

Company
Crafted by Global Consultancy Service
Marketing Officer Ms. Mubeena Ibrahim












Name:Mubeena Ibrahim National ID No.A12392 College ID No.
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Contents
About the Company .............................................................................................................. 2
Marketing Plan ...................................................................................................................... 3
a. Marketing Audit .......................................................................................................... 3
b. Environmental Analysis .............................................................................................. 4
c. SWOT Analysis ............................................................................................................ 5
d. Marketing mix (4ps) .................................................................................................... 6
e. Target Markets ............................................................................................................ 7
a. Marketing Orientation ................................................................................................ 8
b. Benefits of Marketing Orientation ............................................................................. 8
- More Focused Production .................................................................................................. 8
- Concentrated Strategy ....................................................................................................... 8
- Long-Term Profitability ...................................................................................................... 8
c. Costs of Marketing Orientation ................................................................................. 9
- Risk of Underestimating the Market ................................................................................. 9
- Challenges of Quickly Responding to Market Changes ..................................................... 9
a. Extended Marketing Mix .......................................................................................... 10
b. How the additional Marketing mix Assist the Company ....................................... 10
a. Business to Business (B2B) Marketing .................................................................... 11
b. Business to Consumer (B2C) Marketing ................................................................. 11
c. How B2B Differ from B2C ........................................................................................ 11
V. International and Domestic Marketing compared: P4.3 ....................................... 12
a. International and Domestic Marketing ................................................................... 12
b. How International Marketing Differ from Domestic Marketing (with examples
from the company) ............................................................................................................ 12
Conclusion .............................................................................................................................. 14
References: ............................................................................................................................. 14





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Executive Summary
Global Consultancy Service has created this marketing plan after critically examining
and thoroughly researching over it. It consists of examining market research, auditing
situation analysis and carefully studying the soft drink industry and possibilities for
the products of Coca Cola Company in the market. We have carefully scrutinized the
internal and external business environments and critically examined the industry in
general, considering all external threats and opportunities.


About the Company
The Coca-Cola Company is an American internationalbeveragecorporateof
nonalcoholic refreshment concentrates and syrups. The companys corporate
headquarters is located in Atlanta, Georgia, United States of America. The current
chairman of Coca-Cola is Muhtar Kent (Wikipedia, 2014).
The Coca-Cola Company operates in more than 200 countries and has more than 3500
beverage products. Its products include, sparkling beverages, like waters, juices,
sports drinks, teas and also energy drinks. It produces four of the top nonalcoholic
beverages which include Coca-Cola, Fanta, Diet coke and Sprite (Coca-Cola, 2014).











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North
America
Operations,
24%
Internation
al
Operations,
76%
OPERATING INCOME
Marketing Plan

I. Internal & External Environmental Analysis: P1.1

a. Marketing Audit
A marketing audit is a comprehensive, systematic, periodic evaluation of a companys
marketing capabilities.
Being the leading company in the soft drink industry, the Coca-Cola Company boasts
of the largest market share (Project on Marketing Strategy, 2014). The operation
revenue earned by the company can be illustrated by the following pie chart.


The global unit sales of the products of Coca-Cola Company is increasing from the
last ten years. The data can be represented by the following chart.
So there is positive growth in the market of the Coca-Cola Company.
0
2
4
6
8
10
12
14
1971 1981 1991 2001 2011
Global Unit Sales
Unit Sales in
Figure 1: Operating Income of Coca-Cola
Figure 2: Operating Income of Coca-Cola
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b. Environmental Analysis
The market analysis investigates both the internal and external business environment.
It is vital that like any other product Coca-Cola carefully monitor both the internal and
external aspects regarding its business as both the internal and external environment
and their respective influences will be decisive traits in relation to Cokes success and
survival in the soft drink industry.

I nternal Business Environment
The main attributes in the internal environment include efficiency in the production
process, through management skills and effective communication channels. To
effectively control and monitor the internal business environment, Coke must conduct
continual appraisals of the businesss operations and readily act upon any factors,
which cause inefficiencies in any phase of the production and consumer process.

External Business Environment
The External business environment and its influences are usually powerful forces that
can affect a whole industry and, in fact, a whole economy. Changes in the external
environment will create opportunities or threats in the market place Coca cola must be
aware off. Fluctuations in the economy, changing customer attitudes and values, and
demographic patterns heavily influence the success of Coca Cola on the market and
the reception they receive from the consumers.












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c. SWOT Analysis
SWOT is the study of strengths, weaknesses, opportunities and threats. This is
analysis helps with the anticipation of future developments for the company.



































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d. Marketing mix (4ps)
Marketing involves getting the right product to the right place, at the right time, at the right
price and with the most suitable promotional activity (marketing strategy, 2013).

The 4 Ps of Marketing: Product, Price, Place and Promotion
Product (Soft Drinks)
Coca-Cola is the leading provider of soft drinks in the world. In 2010, it not only had the No.
1 selling soda with regular Coke, but its Diet Coke brand outpaced Pepsi for second billing.
Within the pop category, Coca-Cola has a number of brand variants, including Dr Pepper and
Sprite. The company also produces fruit juices and sports drinks. Emphasis on the soft drink
industry, though, has contributed to Coca-Cola's ability to distinguish itself as a quality
provider.
Place
Coca cola is the worlds most favourite brand and is available all over the world.
Selling in mostly everywhere in the world, you can find all the favourite different
brands of Coca Cola in every big chain super market and in most little shops like
corner shops.
Price
The long-term pricing strategy of Coca-Cola can be best described as value oriented. Despite
being a leader in its industry, its fierce rivalry with Pepsi has forced Coca-Cola to maintain
affordable price points to appeal to its vast middle class market. The company was criticized
by shareholders and analysts in 2011 for maintaining relatively low price points in response to
economic recession in the United States (Insight Analysis, 2013). While this point emphasizes
the risks to any company of adopting a price-driven strategy, Coca-Cola's strong global brand
allows for brief periods of price drops.
Promotion
Coca-Cola invests billions of dollars a year in advertising and promotions around the world to
maintain its position of industry leadership against rival Pepsi. Pepsi increased its TV ad
budget by 30 percent in 2011 when it fell behind Diet Coke. Coca-Cola spends a good portion
of its ad budget on television advertising. It has used polar bear characters and a message of
nostalgia and tradition as part of its branding over time. Magazine ads, online and social
media have also been used as media for Coca-Cola marketing. Sales promotions at the store
are used to drive revenue during slow periods.





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e. Target Markets
Coca Cola Company desires to satisfy the need of all different kinds of people. All
consumers have drinks where their target is different, like age group, ethic groups,
sexes, lifestyles, etc. Coca Cola has many various brands and are targeted to different
markets. The company has more than 400 different products line(Products, 2014)
The following table shows target market for some of the strongest products of the
Coca-Cola Company:









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II. Market Orientation: P1.2

a. Marketing Orientation
A market orientated company is one that organizes its activities, products and services
around the wants and needs of its customers. By contrast, a product-orientated firm
has its primary focus on its product and on the skills, knowledge and systems that
support that product.
Coca-Cola follow market (customer) oriented marketing, in doing this Coca-Cola
conduct marketing research to find out their consumer interests and desires, in finding
this they make amends to the production of their product depending on the results.
(The Times 100, n.d)

b. Benefits of Marketing Orientation
Companies with a marketing orientation give the foremost priority to keep the
consumers happy leading to more benefits for the company as the consumers buy
company products repeatedly (Kokemuller, 2007). Some of the benefits include;
- More Focused Production
By making customer needs a primary focus, companies will more likely develop
products that match up with the needs of the customers. For example: with the rise of
health concerns, Coca-Cola produced Coke Zero and Diet Coke specially designed for
health and Diet concerned population.
- Concentrated Strategy
By adopting the marketing concept, companies have all functions aligned with the
strategic vision of meeting the needs of customers. This helps define the role of
employees more clearly. For example: Coca-Colas mission statements itself also
convey the message that their priority is consumers.
- Marketing Advantages
When companies have a good understanding of what the market needs or wants, they
have better ability to market effectively to them. For example: Coca-Cola Companys
slogans and ads are based on the latest trends.
- Long-Term Profitability
Consistently understanding and delivering what the marketplace wants leads to long-
term profitability. Companies can turn one-time buyers into repeat customers, with an
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ultimate goal of developing many loyal customers. For example: because of the
needful and quality product many people choose products of Coca-Cola over others
resulting more profitability for the company
c. Costs of Marketing Orientation
In several ways a company's approach to market orientation can hurt, rather than help, its
mission (McQuerrey, 1994) .
- Risk of Underestimating the Market
A successful approach to market orientation involves a systematic approach to
researching customer behavior. Missing the mark in this process creates a system
where a company is using ineffective data in its approach to reaching out to
customers. For example: when first the Coca-Cola Company produced Coke Zero (a
sugar free version of Coke) they named the product as Light Coke and targeted it
towards the male population who want to be fit. Because of the name and packaging
males considered it too girly a product for men. So again the company launched it
with the Coke Zero. This could be a result of ineffective data.
- Risk of Underestimating the Customer
A global marketplace has increased competitiveness across all consumer brands.
Companies that have established an approach to market orientation but fail to update
it as needed run the risk of alienating their customers.
- Challenges of Quickly Responding to Market Changes
Markets that rapidly change have just as great an impact on a company's market
orientation strategy as educated consumers. New players entering or exiting the
market, advances to existing products and an ever-changing cost of raw materials,
products and services all impact market orientation. Following an established market
orientation and failing to take new external factors into consideration can put a
company at a disadvantage.
Judgment
With the help of the mentioned examples it can be concluded that the Coca-Cola
Company get more benefits than costs from the chosen marketing concept. As Coca-
Cola is well established already they get higher revenues, and because of this they can
invest as much as needed to do flawless and effective researches and to understand
their consumers.


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III. Extended Marketing Mix: P3.5

a. Extended Marketing Mix
Booms and Bitner included three additional 'Ps' to accommodate trends towards a
service or knowledge based economy(Leadley, P. & Forsyth, P., 2004). They are:
People
Process
Physical Evidence
People
All people who directly or indirectly influence the perceived value of the product or service,
including knowledge workers, employees, management and consumers
Process
The process of the product is essential in marketing. This determines the capability of
the product to supply the demand of the consumers.
Coca-Cola's distribution process is a key element of its offering. The company's
products are available in cans and bottles in supermarkets and other retail stores
around the world. Additionally, the company provides supplies for fountain drinks in
many restaurants.
Physical Evidence
Physical appearance is the first distinction of a product. A product could be easily recognized
by its appearance. For example: Coca-Colas logo is sufficient for identifying its products
from others.

b. How the additional Marketing mix Assist the Company

People: the experience and skill of companys people, i.e.workers, employees,
managementhelp to provide the best to their consumers. How the companys people serve to
consumers have great influence in the target market.
Process: a smooth process helps the marketer to employ relevant and supportive
services to their customer in order to give them more satisfaction for their patronage.
As theseprocesses when effectively employed will go a long way to create brand
loyalty and also a long lasting relationship with the customer.

Physical Evidence: it is also another influential marketing tool as consumers are likely
to be influenced by what they see and a more conducive atmosphere to attract more
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customers. When the consumers confidence is built for the company it helps to create
brand loyalty and also a long lasting relationship with the customer.

All of these elements are very much important to the marketer because its one of the
most important keys use to open and close and adjust doors of opportunities in the
target market.

IV. Types of Marketing: P4.2

a. Business to Business (B2B) Marketing

Business to Business marketing: when one business sells to another business rather
than to an end user(Lake, 2014). For example: When Coca-Cola Company sells its
products to MacDonalds, it is business to business marketing.

b. Business to Consumer (B2C) Marketing

Business or transactions conducted directly between a company and consumers who
are the end-users of its products or services(Lake, 2014). For example: when Coca-
Cola Company sells its products through vending machines directly to consumers.

c. How B2B Differ from B2C
When marketing B2B, there is little to no personal emotion involved in the purchasing
decision. The selling company wants to focus on understanding the organizational
buyers and how they operate within the confines of their organization's procedures.
The B2B market has a thirst for knowledge and they are information seekers. Be more
in-depth with your marketing materials. Your most effective marketing message will
focus on how your product or service saves them time, money and resources.
Your business-to-business market is more interested in the logic behind your product.
They will want to hear more about the features and how it will help them in saving
time, money or resources.
Whereas, B2C marketing purchase depend more on emotion. They are more interested in
the benefit of the product. They will want to hear more about how their product or service
helps them and what benefits it brings to them personally.






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d. Justification
Coca-Cola uses the both B2B and B2C marketing.
It has a wide B2B market as it provides branded beverages throughout the world. For
example: In all most all countries the known restaurants provide Coca-Cola products.
The B2C market of beverages of Coca-Cola Company is also very wide, as
everywhere products of Coca-Cola are available through vending machines, retail
shops etc.


V. International and Domestic Marketing compared: P4.3

a. International and Domestic Marketing
International Marketing
When there are no boundaries for a company and it targets customers overseas or in
another country, it is said to be engaged in international marketing. Example: Coca-
Cola Company is an internationally marketing organization as it operates its business
all over the world.
Domestic Marketing
The marketing strategies that are employed to attract and influence customers within
the political boundaries of a country are known as domestic marketing. For example:
local companies like, Lilly Enterprises are domestic marketing as they do business in
the local country only.
b. How International Marketing Differ from Domestic Marketing (with examples
from the company)
Difference between International and Domestic Marketing
International Marketing Domestic Marketing
i. Social and Cultural
Aspects

Trade should be done taking diverse into consideration.
Even things like color combination can be affect the trade.
Culture does not affect in
domestic marketing.
ii. Government and
Exchange takes place under government rules and
regulations. There is high degree of government
Government interference
is zero or minimum only
in case of essential
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Political Aspects interference.
International trade is characteristics by tariff and non-tariff
barriers
commodities government
interferes
Domestic marketing has
no such restrictions.
iii. Economic Aspects
It involves exchange on the basis of different currencies.
Letter of credit is normally as mode of payment.
It involves exchange in
the basis of same
currencies
Cash, Cheques, DDs are
the most common.
iv. Financial Aspects
It involves exchange on the basis of different currencies.
Local taxes: They are imposed on imported goods to
make them on par or costlier than local goods
It involves exchange in
the basis of same
currencies.
Local taxes: relatively
low or no tax for local
goods

v. Data (Statistical)
Aspects
International Marketing is subject to complex
documentation
Domestic trade does not
involve much of
documentation.
Stakeholders

More risk to the stakeholders because of high completion
level
Less competition
Justification
As Coca-Cola Company is an international marketing organization they have to carter
always to diverse and multicultural markets and in different areas their marketing
strategy should be different as the market is socially different.
To implement their strategies in the branches all over the world they have to face
strong influences from the government rules and regulations. There is high degree of
government interference.
As political stability is different in different areas of the world political risks are high
for the company
As its international they have to use an international currency varying levels of
development.
It is difficult in many rural areas and developing countries to obtain the relevant data
for market researching. And also it is comparatively expensive to store companys
data available for rural areas and many developing countries.
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Internationally the company can get differing finance systems and from different
regulatory bodies
Stakeholders always have to keep an eye on the competitors because internationally
the company has to face much stronger competitions. Like, for Coca-Cola Pepsi is
giving a hard competence.

Conclusion
With the help of PEST, SWOT & other analysis, the internal & external environment
of Coca-Cola Company has been analyzed. The strength of the companys system
allows infinite growth in the global market. They have the resources available for this
opportunity but they must develop marketing strategies that have local appeal as this
is essential for their success. Through their brand reputation and vast marketing
experience, Coca-Cola Company has the ability to extend the recognition of their
brand and logo. However it would be best to control brand equity and financial
resources, to accelerate global market penetration with a view to long term profits.
Company must continue to evolve its market share. The effectiveness of TV ads is
declining due to media fragmentation. So it is advisable to divert money previously
spent on TV towards more experimental activities like setting up of lounges in teen
malls and offer exclusive music videos, video games.
With the threat of political and economic instability, it must consider each countrys
unique cultural, political, legal and economic environment to extend its market share.
With the threat of increasing health consciousness among consumers, it is advisable
for Coke to further resource their fruit drink product lines as this market sector is
growing rapidly. In laying out an appropriate marketing mix, Coke must consider
product, distribution, promotion & price, therefore developing a marketing mix for
each customer group.
In the beverage industry if Coca-Cola can diversify and expand on their products,
globally they would gain a huger market share and a greater competitive advantage
that would allow for greater long-term profits and increase dominations in the future.



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References:

Insight Analysis. (2013). Retrieved from Global Intelligence Alliance:
https://www.globalintelligence.com/insights-analysis/
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marketing strategy. (2013). Retrieved from businesscasestudies.co.uk:
http://businesscasestudies.co.uk/coca-cola-great-britain/within-an-arms-reach-of-
desire/marketing-strategy.html#ixzz35wvAx6CS
Coca-Cola. (2014). Retrieved from Kenyayote.com: http://Kenyayote.com/coca-cola/
History. (2014). Retrieved from Coca Cola Company: www.coca-cola.com
Products. (2014). Retrieved from The Coca Cola Company : (2013) Available from:
http://www.coca-colacompany/products
Project on Marketing Strategy. (2014). Retrieved from projectsformba.blogspot.com:
http://www.projectsformba.blogspot.com/Project on Marketing Strategy
Kokemuller, N. (2007). Advertising & Marketing: Marketing: The Advantages of Marketing
Orientation. Retrieved from Small Business:
http://smallbusiness.chron.com/advantages-marketing-orientation-20975.html
Lake, L. (2014). Marketing: Understanding the Difference Between B2B and B2C Marketing.
Retrieved from About.com:
http://marketing.about.com/od/plantutorialsandsamples/a/b2cvsb2b.htm
Leadley, P. & Forsyth, P. (2004). Marketing: Essential Principles, New Realities. Glasgow: Bell
& Bain.
McQuerrey, L. (1994). Advertising & Marketing: The Disadvantages of Market Orientation.
Retrieved from Small Busines: http://smallbusiness.chron.com/disadvantages-
market-orientation-15818.html
Wikipedia. (2014). The Coca-Cola Company. Retrieved from en.m.wikipedia.org:
http://en.m.wikipedia.org/wiki/The_Coca-Cola_Company




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