Table of Contents

1.0 Executive Summary

2.0 Mission statement
3.0 Internal and External Environmental Analysis of Coca-Cola
3.1 External Analysis
3.1.1 PESTLE
3.1.1.1 Political Environment
3.1.1.2 Economic Environment
3.1.1.3 Social / Cultural Environment
3.1.1.4 Technological Environment
3.1.1.5 Legal Factors
3.1.1.6 Environmental Factors
3.2 Internal Analysis
3.2.1 Customer analysis
3.2.2 Company analysis
3.2.2.1 Coca-Cola Company Background

3.2.2.2 Business Vision of Coca-Cola

3.2.2.3 Critical Success Factors of Coca-Cola
3.2.2.3.1 Marketing at Coca-Cola
3.2.2.3.2 Innovation at Coca-Cola
3.2.2.3.3 Globalization
3.2.2.4 Competitor analysis
3.2.2.5 Porters 5 forces
3.2.2.6 SWOT analysis
3.2.2.7 Marketing Objectives
4.0 Marketing Strategy
4.1 Product Strategy
4.2 Pricing
4.3 Place
4.5 Promotion
4.6 People
4.7 Processes
4.8 Physical Evidence

5.0 Budget
6.0 Control Mechanisms
7.0 Reference List

1.0 Executive Summary

This report is aimed at comprehensively developing a strategic marketing plan for the
famous cola-cola drink that is produced by the Coca-Cola Company (herein after known
as the company). This report would be focused on making a proper analysis of the
internal and external business environment of this company, making an assessment of the
key/critical success factors of this company, evaluating the strengths, weaknesses,
opportunities and threats facing this company and also the basis for the strategic thrust.
Having done this, the next step would be to develop a medium strategic options and a
marketing strategy for this product would then be recommended. The strategic marketing
mix would also be discussed and then the strategic direction taken by this company
would also be managed and directed. In essence, the strategic marketing plan that will be
developed for this product by the Coca-Cola Company would be for the development of
broad marketing objectives and strategy that is based on the current market situation and
opportunities in America. This marketing strategy normally consists of specific strategies
for target markets, marketing mix and marketing expenditure level (Kottler, et al, 2012).
For this strategic marketing plan, the product that will be the subject of the plan would be
a new Coca-Cola beverage, Nutri Coke, a non carbonated fruit juice which is highly
nutritional, low in sugar and tasty, meant for young, middle aged and old people. This
product is likely to cater to all the present changes in consumer preference towards soft
drinks and hence bring the company profitability.
2.0 Mission statement
The main mission of Coca-Cola is to accomplish the following:
1. Refreshment of the world in body, mind and spirit
2. Inspiration of moments of optimism via Coca-Cola brands and their actions
3. Creation of value and differentiation in what the company engages in
(The Coca Cola Company.com Mission, Vision, Values, 2013)
3.0 Internal and External Environmental Analysis of Coca-Cola

3.1 External Analysis

3.1.1 PESTLE
3.1.1.1 Political Environment
Marketing decisions are normally affected by the developments in the political
environment and this normally consists of laws, government agencies and pressure
groups which influence and limit various organizations and individuals in a given society
(Kotler et al, 2012). The political environment is American can be described as quite
stable as the new Obama Administration has taken over much to the delight of
Americans. It is likely that this political trend of stability and security in America would
continue for some time. However, the US government has changed its stance towards
companies like Coca-Cola mainly due to health related concerns of their products.
Practically speaking, Coca-Cola soft drinks have been alleged to contain very high levels
of sugar and this could have a negative impact on the health of consumers. The
consumption of excessive amounts of sugar has been connected with the health problems
among children and adults who are at risk of type 2 diabetes. Also, the high sugar content
in Coca-Cola drinks have a bad effect on a persons oral health, leading to decaying of
teeth. In taking all these matters into consideration, the US government has banned the
sale of Coca-Cola in school canteens across the US (Just Drinks.com Soft Drink
Companies under Pressure, 2013). The UK is likely to follow suit also. Trends like
these would cause a dent in the profitability of the company because of decreased sales,
as a large number of consumers of Coca-Cola are children and young teenagers.
3.1.1.2 Economic Environment
The economic environment here normally comprises of factors which have an affect on
the buying power of the consumers and spending patters. Markets normally require
buying power and people as well and it is important for this company to be aware of the

major trends in income and the changing consumer patterns (Kotler et al, 2012). The
economic environment is American is characterized by various uncertainties as this
country pulls itself out from the financial crisis that swept across the nation not long ago.
The economic downturn is certainly not very good for a number of large American
companies such as Coca-Cola, who would find themselves concentrating on various
international markets in order to promote and sell their products.
3.1.1.3 Social / Cultural Environment
The cultural environment is normally made up of institutions and forces that affect the
societys basic values, perceptions, preferences and behaviors. In essence, it is the people
in a particular society which shape their very basic beliefs and values. In essence, they
tend to absorb a world-view that defines their relationships between themselves and
others (Kotler et al, 2012). In the United States and other developed and developing
countries, social and cultural trends do not seem to favor Coca-Cola at all as Americans
are starting to become more health conscious. More and more Americans are starting to
regulate their calorie intake and are meticulous with the type of food they eat and type of
drink they consumer (Calorie Control Council.com Health Conscious Trend in
America, 2013). They are starting to understand that many of these soft-drinks are bad
for their health and starting to adopt healthier drinking habits. Obesity, for instances, is a
major problem and has been linked to the excessive consumption of soft drinks and many
soft drink companies like Coca-Cola have reported slower volume growth. The
consumers are now turning to healthier foods and drinks as obesity is becoming more
commonplace (Vegan Represent.com Countervailing Social Trends, 2013). Also,
research carried out by independent organizations have demonstrated that drinks like
Coca-Cola only serve to add to the calorie intake of a persons without bringing any other
benefit to its consumers (CNN.com Consumer Health and Soft Drinks, 2013).

3.1.1.4 Technological Environment

This is the most dramatic force that shapes our destiny and this company also needs to
observe current trends in technology (Kotler et al, 2009). America is a country that is
well known for its advancements in technology and companies like Coca-Cola can
benefit from this technology because they are capable of using available technology to
improve their operations to gain cost effectiveness, to improve their products to appeal
more to consumers and to also protect the environmental technology (US Embassy .de
Science & Technology, 2013). Technology is also advancing in the sphere of food
production and Coca-Cola is capable of capitalizing on the advancements on such
technologies to make their drinks safer and more nutritious.
3.1.1.5 Legal Factors
This normally concerns the change in legal factors that can affect the environment which
the company does business in. Legal trends that persist now towards soft drink and fast
food companies in America would likely to change and the influx of legal suits against
soft drink companies are likely to rise (Vegan Represent.com Countervailing Social
Trends, 2013). Medical evidence unearthed from scientific research has found a link
between consumption of soft drinks and obesity and hence there is a possibility of
floodgates of litigation being opened. Furthermore the changing judicial thinking and
trends in America seem too favor the protection of consumers and Coca-Cola would
likely to be exposed to an increase in legal action brought against them by the
government in terms of no compliance with new regulations on consumer health and
safety and also by consumers that experience health problems when they consume CocaCola drinks in the long term.
3.1.1.6 Environmental Factors
The US government and also governments in other parts of the world have stepped up
their effort to ensure that companies like Coca-Cola adhere to various environmental
protection laws and that these companies do not carry out their operations in a way that

would harm the environment. Companies that do not comply with such requirements are
likely to be penalized by the law and acquire a bad image on part of the society. CocaCola is a company well known for its socially responsible practices and its sustainable
operations and hence they are likely to not have to worry about being on the wrong side
of the law.
3.2 Internal Analysis
3.2.1 Customer analysis
The customers of Coca-Cola are normally people that come from all age groups, mostly
teenagers, young adults and also older people. These customers come from all segments
of society. However, as of late, the consumer preference for Coca-Cola has been
influenced by changes in cultural trends that now see more and more consumers favoring
more healthy drinks and this would make Coca-Cola soft drinks which are high in sugar
to become unpopular. These consumers are starting to become aware of the problems
linked to consuming excessive soft drinks and would simply change their preference to
some other drink. However, this is still an emerging trend and Coca-Cola continues to
have a very large and loyal customer base all over the world (Baker, 2008).
3.2.2 Company analysis
3.2.2.1 Coca-Cola Company Background
Coca-Cola can be described as one of the largest companies in the world and it has
enjoyed a tremendous amount of successful and is very widely recognized all around the
world (Yahoo Biz.com Coca Cola Company Profile, 2013). This company is a
dominating force within the beverage industry and its sets certain high standards for
competition. From research that has been performed in the past, it was revealed that the
Coca-Cola trademark is recognized by approximately 94% of the worlds population
(Wmich.edu - Coca-Cola Company Information, 2013). The company has achieved

very high profits and continues to do so even presently. For instance, in 2007, 2008 and
2009, this company had earned revenue that was worth $28,857M, $24,088M, and
$23,104M respectively. Within these years, the company's gross profit margins stood at
63.9%, 66.1%, and 64.5% respectively (Market Research.com The Coca-Cola
Company, 2013).
The Coca-Cola Company has ownership to four of the top five soft-drink brands and
these include:

Coca-Cola

Diet Coke

Sprite

Fanta

(Yahoo Biz.com Coca Cola Company Profile, 2013)

The other brands of Coca-Cola include Minute Maid, Barq's, POWERade, and Dasani
water. This company is said to manufacture or licenses approximately 400 drink
products in approximately 200 nations (Yahoo Biz.com Coca Cola Company Profile,
2013).
3.2.2.2 Business Vision of Coca-Cola
It is understood that the mission, vision and values of Coca-Cola effectively outlines what
Coca-Cola is seeking to achieve and they method by which they intend to achieve. The
vision Coca-Cola essentially guides every aspect of their business and it does this by
describing what is required to be accomplished for the purposes of continuing to achieve
growth that is sustainable (The Coca Cola Company.com Mission, Vision, Values,
2013). Coca-Cola has the following visions:
1. Being a place that is great to work in

2. Providing the world with beverage brands of very high quality which are capable
of satisfying the needs and desires of people
3. Creating a winning network between customers and suppliers
4. Responsibly constructing and supporting communities that are sustainable
5. Effectively maximizing the long-term return to Coca-Cola shareowners
(The Coca Cola Company.com Mission, Vision, Values, 2013)
3.2.2.3 Critical Success Factors of Coca-Cola
The company has a number of success factors which normally comprise of marketing,
innovation and globalization. An overview of these success factors will now be made.
3.2.2.3.1 Marketing at Coca-Cola
Coca-Cola is pioneer of advertising techniques and styles used to capture an audience.
Via its very strong marketing campaigns, Coca-cola have developed an image that is
positively reflected in what goes through the mind of the consumer when he or she
purchases a coke drink (Wmich.edu - Coca-Cola Company Information, 2013).
3.2.2.3.2 Innovation at Coca-Cola
Coca-Cola Company has been able to survive for long periods of time because this
company normally strived towards the systematic innovation and delivering of new and
improved products (Baker, 2008). Over the years, Coca-Cola has moved from having just
one core product to becoming a total beverage company. The strategy that was adopted
by Coca-Cola was entitled play with innovation. By adhering to this strategy, it has
helped Coca-Cola in diversifying its offerings to up to 400 different products
(Wmich.edu - Coca-Cola Company Information, 2013).

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3.2.2.3.3 Globalization
The third key success factor of this company is its expansion of its operations on a global
basis to serve various types of diverse markets all around the world. This company is
enjoying immense success in offering its products to well over 200 countries all around
the world (Wmich.edu - Coca-Cola Company Information, 2013).
3.2.2.4 Competitor analysis
The soft drinks industry is growing at an average pace with Coca-Cola being number one
in the industry after Pepsi (Encyclopaedia.com Soft Drink Industry Growth, 2013).
The main competitor of Coca-Cola in America and the world is Pepsi. This is a huge
competitor and has a large market share in the American soft drinks market and
internationally also. The quality of their products is quite high and the employ the use of
sound marketing strategies to compete with Coca-Cola. Pepsi beverage brands typically
encompass Mountain Dew, Gatorade, Diet Pepsi, Tropicana Pure Premium, Aquafina
water, Mug, Sierra Mist, Tropicana juice drinks, SoBe, Propel, Tropicana Twister, Slice,
Dole, and Tropicana Season's Best (NY Job Source.com PepsiCo, 2013).

Pepsi

possess a US market share for Pepsi brands which is about 40% (Yahoo Business.com
Pepsi Bottling Group, 2013). During year 2007, Pepsi Company had managed to
acquire revenues of $39 billion (NY Job Source.com PepsiCo, 2013).
3.2.2.5 Porters 5 forces
3.2.2.5.1 Threat of New Entrants
In the soft drink industry, the threat of new entrants is low to moderate. The reasons are
that new companies in the industry would have to incur high fixed costs of production,
logistics, and marketing activities. Also, new entrants would have to build their own
bottling plants and this requires high capital. The presence of strong and well established

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competitors like Coca-Cola and Pepsi make it hard for new entrants to competitive
effectively in the industry (Kotler et al, 2007).
3.2.2.5.2 Threat of Substitutes
This threat is high because there are many substitutes for Coca-Cola products and these
include sports drinks, bottled water, fruit juices, coffee and tea. The increasing awareness
of consumers about their health has increased the popularity of bottled water and sport
drinks. There is a large variety of teas, bottled water, coffee and sports drinks within the
market to appeal to a variety of consumers tastes (Baker, 2008).
3.2.2.5.3 Threat of Suppliers
The main suppliers of Coca-Cola mostly suppliers of the ingredients used to make their
carbonated and non carbonated drinks. These include colouring, flavouring, caffeine or
sugar, and other additives that are easily available. Hence, suppliers do not have much
bargaining power over large companies like Coca-Cola and Pepsi and threat of supplier
bargaining power is low (Kotler et al, 2007)
3.2.2.5.4 Bargaining Power of Buyers
The bargaining power of main Coca-Cola buyers such as large grocers, supermarkets,
convenience stores and restaurants is high because these customers buy very large
volumes and hence they can bargain to get a lower price (Baker, 2008). Also, the
decreasing demand for soft drinks because of the health effects has increased the
bargaining power of buyers also.
3.2.2.5.5 The Competitive Rivalry
The competitive pressure is very high in the industry and the challenges come mostly
come from PepsiCo who is the main competitor of Coca-Cola. Pepsi dominates the sales

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of soft drinks in North America but Coca-Cola much higher sales within the international
market (Kotler et al, 2007)
3.2.2.6 SWOT analysis
Strengths

Weakness

Very high brand awareness

Low nutritional value of drinks

Loyal customer base

High sugar content of drinks

Long presence in the industry

Brings about health problems if consumed

Competitive pricing

in excess

Popular commercial taste

Lack of diversification on non carbonate

Large international presence

soft drink segment

Good management
Effective promotional strategy
Good research and development
Opportunities

Threats

Increasing the nutritional aspect of product

Competitors that produce similar products

Reducing the sugar content of product

Competitors producing products of higher

Expansion into new markets

nutritional value

Adding more health related drinks to its Legal action brought about by dissatisfied
product line

consumers

Using available technology to make drinks Changing consumer preferences towards

safer and healthier

healthier beverages
Changing government regulations that lead
to restrictions placed on Coca-Colas
marketing activities

Table 1: SWOT Analysis of Coca-Cola

3.2.2.7 Marketing Objectives
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The marketing objectives of Coca-Cola in this integrated marketing plan are presented in
the table below:
Coca-Cola Marketing Objectives

To obtain an increase sales by 3% in the US by the 4th quarter of 2014

To obtain an increase in sales by 3.5% in international markets by the 4 th quarter
of 2014
To increase the companys market share by 5.6% by the 4th quarter of 2014
To achieve an increase in profitability by 7.8% in the non carbonated drinks
segment by the 4th quarter of 2014.
To market the new product in 100 countries by the 4th quarter of 2014

Table 2: Marketing objectives of Coca-Cola

4.0 Marketing Strategy
4.1 Product Strategy
The new product comprises of a non carbonated health drink which can be described a
nutritionally enhanced fruit juice that is non-carbonated and that is nutritionally
enhanced. The main feature of this product is that it would not contain any artificial
colouring or flavouring and only contain natural additives which make this a 100%
natural health drink. Also, the product would come in different fruit flavours, such as
orange, mango, pineapple, strawberry, peach and lemon. Most importantly the sugar
constant of the product would be reduced to ensure that its consumption does not have
undesirable health effects on consumers during the long term. Using state of the art
technology and food processing techniques, Coca-Cola would produce a product that is
100% natural and which caters to consumers growing requirements for health based
beverages (Baker, 2008).

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4.2 Pricing
Coca-Cola needs to understand that its consumers are very sensitive to prices and value
discounts and special offers tremendously (Kotler et al, 2007). However, there is an
irrational side to pricing as sometimes, the perceptions of customers are such that
customers might equate high prices with high quality and vice versa. Hence, competing
on price on a permanent basis is not a very sensible approach (Value Based
Management.com Marketing Mix, 2013). Coca-Cola would introduce the product
using a competitive pricing strategy, which involves the company setting a price for the
product lower than similar products of its competitors (Kotler et al, 2007). It is after the
product has managed to gain sufficient popularity with consumers should Coca-Cola
change their pricing strategy to reflect a slight higher but competitive price (Baker,
2008). The increase in price is premised on the belief that consumers would not mind
paying a little extra for better quality and higher nutritional value.
4.3 Place
The product must be made available at the right place and at the right time and in right
quantities. For this product, Coca-Cola should change their distribution strategy and place
more emphasis on the use of the internet (Value Based Management.com Marketing
Mix, 2013). In addition to having the product sold at its normal distributors, Coca-Cola
should make this product available online whereby customers would be able to purchase
this drink online and have it delivered to them. Obviously there needs to be a particular
limit on the minimum amount that can be ordered. This would be particularly useful for
persons that buy in bulk (Kotler et al, 2007).

4.5 Promotion

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The target market for this product must be sufficiently educated about this new product
and the value it can provide the consumers. Coca-cola must promote this new product
using a very integrated and effective mix relating to advertising. This is very P is very
important if Coca-Cola is to achieve success from this product in that target market
(Value Based Management.com Marketing Mix, 2013). The advertising budget is to
be increased for television advertising by 5%, radio advertising by 3%, internet
advertising by 15%, newspaper advertising by 5%, magazine advertising by 7% and
billboard advertising by 10%. The company would also launch extensive sales
promotions and implement a public relations campaign to help the product gain a strong
foothold in the market (Kotler et al, 2007).
4.6 People
The people at Coca-Cola must all be focused on this new product and to give their full
focus and resources to marketing this new product in the most effective way. The
management of Coca-Cola would implement a culture workshop whereby everyone in
the Coca-Cola organization would be required to attend and learn about how they can
help to make this new product a success by joining hands to create a new culture at CocaCola which is focused on making the new product a top seller at this company (Baker,
2008).
4.7 Processes
The main process of Coca-Cola that is relevant is the marketing process and Coca-Cola
need to ensure that all of its marketing activities are streamlined and integrated across
various parts of the marketing department to ensure that proper focus in given to the
effective marketing of this product (Baker, 2008).
4.8 Physical Evidence
The physical appearance of the product would involve having a simple yet effective
design. The Coca-Cola logo would be prominently placed on the packaging and attractive
colours and graphics are used to attract the eye of consumers. Also, the bottle used to
contain the new drink would be made from recycled plastic. The package would also
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display the nutritional value and information of the product and also the corporate social
responsibility of the company (Kotler et al, 2007).
5.0 Budget

Table 3: Proposed budget for Coca-Colas Nutri Coke

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Table 4: 3 year sales forecast of Nutri Coke

6.0 Control Mechanisms
The marketing department of Coca-Cola has the responsibility to ensure that the
marketing plan is capable of achieving the business objectives discussed earlier. Every
month, the marketing goals are reviews and discussed and it is determined whether the
company is on the right path to achieving these goals (Kotler et al, 2007). The results of
every period are reviewed constantly and there is evidence to show that objectives are not
being met properly, steps must be taken by the marketing manager to ensure that the
strategic plan has not deviated and that the marketing plan is effective enough to help the
company achieve their marketing objectives (Baker, 2008). Coca-Cola must have a
contingency plan to ensure that adequate response can be taken to help cope with changes
in the plan and address problems that arise before they can compromise the ability of
Coca-Cola to achieve their desired objectives (Kotler et al, 2007).

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7.0 Reference List

Kotler P, Brown L, Adam S, Burton S and Armstrong G, 2007 Marketing PEARSON Education Australia: 7th Ed.

Baker, M 2008 The Strategic Marketing Plan Audit Cambridge Strategy Publications
Wmich.edu - Coca-Cola Company Information, 2032: citing from an internet source:
http://homepages.wmich.edu/~s3dohert/project.htm
Accessed on: 8-12-2013
Market Research.com The Coca-Cola Company, 2013: citing from an internet source:
http://www.marketresearch.com/product/print/default.asp?g=1&productid=2018754
Accessed on: 8-12-2013
The Coca Cola Company.com Mission, Vision, Values, 2013: citing from an internet
source:
http://www.thecoca-colacompany.com/ourcompany/mission_vision_values.html
Accessed on: 8-12-2013
NY Job Source.com PepsiCo, 2013: citing from an internet source:
http://www.nyjobsource.com/pepsico.html
Accessed on: 10-12-2013
Vegan Represent.com Countervailing Social Trends, 2013: citing from an internet
source:
http://www.veganrepresent.com/forums/showthread.php?t=1644
Accessed on: 2-12-2013
US Embassy.de Science & Technology, 2013: citing from an internet source:
http://usa.usembassy.de/technology-environment.htm
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Accessed on: 2-12-2013

Value Based Management Marketing Mix, 2013: citing from an internet source:
http://www.valuebasedmanagement.net/methods_marketing_mix.html
Accessed on: 6-12-2013
CNN.com Consumer Health and Soft Drinks, 2013: citing from an internet source:
http://www.cnn.com/2007/HEALTH/diet.fitness/09/18/kd.liquid.calories/index.html
Accessed on: 8-12-2013
Calorie Control Council.com Health Conscious Trend in America, 2013: citing from an
internet source:
http://www.caloriecontrol.org/pr12-16-05.html
Accessed on: 5-12-2013
Encyclopaedia.com Soft Drink Industry Growth, 2013: citing from an internet source:
http://www.encyclopedia.com/doc/1G1-12721359.html
Accessed on: 1-12-2013
Yahoo Business.com Pepsi Bottling Group, 2013: citing from an internet source:
http://biz.yahoo.com/ic/53/53831.html
Accessed on: 3-12-2013
Yahoo Biz.com Coca Cola Company Profile, 2013: citing from an internet source:
http://biz.yahoo.com/ic/10/10359.html
Accessed on: 8-12-2013
Just Drinks.com Soft Drink Companies under Pressure, 2013: citing from an internet
source:
https://www.just-drinks.com/article.aspx?id=85087
Accessed on: 12-12-2013

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