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Marketing Plan and Research Report of Coca-Cola

Table of Content

Executive summary (2)

External environment analysis (2)

Market strategy (6)

Marketing research result (6)

Marketing mix summary (7)

Detailed strategy for promotion (9)

Controls (11)

Reference list (13)

Executive summary

The Coca-Cola Company (“Coca-Cola”) was founded in 1886 which is ranked number one in the beverage industry. The company manages more than 500 nonalcoholic beverage brands, and four of the top five nonalcoholic sparkling beverage brands are owned by Coca-Cola. According to its 2012 annual report, the whole group’s net operating revenue amounted to 48.02 billion USD (The Coca-Cola Company Annual Review, 2012). In addition, Coca-Cola accounts for approximately 37.1% of all the soft drink market, followed by PepsiCo at about 30.2%, and Dr. Pepper Snapple Group at 21.4% (Faber, 2012).

In the long-standing viewpoint, Coca-Cola has an inclination to expand its market share to 50% and its sales revenue to 500 billion USD in the 2015 (Hofstede, 2012). Although its prosperous status quo, the company is also facing against an intensified competition. This report is aimed at analyzing the overall marketing strategy of Coca-Cola to find out the potential vulnerabilities. Then, based upon the analysis and in-depth research, it will outline the strategic plan for the future in order to further enhance Coca-Cola’s marketing status.

External environment analysis

A well-rounded analysis of company’s environment will be beneficial for the comprehensive understanding of the situation. First, it is better to research Coca-Cola’s external situation which includes three parts: macro-environmental factors, micro-environmental factors and competitive strategy.

For the macro aspect, this report utilizes PEST model which examines the changes in a marketplace caused by Politics, Economy, Social and Technological factors.

?Political Analysis

Shifts of government’s attitude towards the foreign-invested enterprise may pose a threat to the company. Especially in the emerging countries, the political stability is essential to a successful business. In addition, changes of laws and regulations, including non-alcoholic drinks regulation should be considered.

?Economic Analysis

According to IMF, while there have been some encouraging signs of economic recovery, the global economic growth seems to be losing momentum. In other words, the company still needs to be vigilant to the outside world and the emerging economy to seize opportunities.According to the Standard and Poor's Industry surveys, "For major soft drink companies, there has been economic improvement in many major international markets, such as Japan, Brazil, and Germany." These markets will continue to play a major role in the success and stable growth for a majority of the non-alcoholic beverage industry.

?Social Analysis

Living a healthier lifestyle is so prevalent all around world that has affected the non-alcoholic beverage industry as some consumers are switching to bottled water and diet colas instead of beer and other alcoholic beverages. This continued tendency will impact the non-alcoholic beverage industry by increasing the demand overall and in the healthier beverages.

?Technological Analysis

The rapid advancement of science and technology may deeply impact Coca-Cola as well. For example, novel distribution channel, diversified promotion campaign and new production line etc.

In terms of micro-environmental factors, it is advisable to use Porter's Five Forces model to analyze the market condition.

?Threat of new entrants

Compared with other industry, soft drinks industry has a relatively higher gross profit rate and lower barriers to entry, accordingly, there do exist many potential entrants. ?Threat of substitute products

As is mentioned above, healthier drinking has been a new trend for the consumers. So, enough attention must be paid to the substitute products such as tea drinks, bottled water and sports drinks.

?Bargaining power of customer

With thousands kinds of non-alcoholic beverage in the market, consumers have a wide range of options. Additionally, they are also becoming sensitive to price which render them to have more bargaining power.

?Bargaining power of suppliers

As the leading company in the market, Coca-Cola stays strong to the suppliers who are willing to collaborate with such a giant enterprise. In other words, bargaining power of suppliers is comparatively weak.

?Intensity of competitive rivalry

Relied upon its sales and distribution channels, Coca-Cola has undoubtedly established a mature marketing network. But what can’t be ignored is the threats posed by companies out of carbonated beverage, they all spare no effort to gain market share in

Broad

Narrow the relevant industry.

After the analysis of the above two factors, keeping alert and further developing the core competency are extremely significant to Coca-Cola. Thus, how will the company compete with the major players in the market?

Competitive Advantage

Lower Cost Differentiation

As can be seen in the chart, the company used differentiation and cost leadership tactics. Differentiation is achieved through superb quality of its product, which surpasses the company’s major rivals in the brand image and high customer recognition. What’s more, its promotion campaign and packaging strategy also differentiate Coca-Cola from competitors, for instance, its unique bottle design has become a world famous symbol.

The positioning of cost leadership is achieved not only through economies of scale in research, development and promotion, but also through learning, knowledge and experience in production and operational processes. Furthermore, the company’s Cost Leadership

Differentiation Cost Focus Differentiation Focus

Competitive Scope

efficient distribution networks and manufacturing systems contribute significantly to its cost saving..

Market strategy

Based on the above analysis, this report researches the interior part of Coca-Cola to determine its marketing and financial objectives, segmentation, positioning, and target market(s) in the future.

Future growth for Coca-Cola will be embodied in two main areas: global emerging market health drinks. Besides United States Coca-Cola will continue to market to countries around the world. The company has an impressive performance in emerging markets like Latin America, the BRIC, and Western Europe which will be their major focus in the future for this is where major growth opportunities lie.

In addition, consumers are moving towards a healthier lifestyle, which accordingly is causing Coca-Cola to expand product line to satisfy their needs. This new market is huge and creates a lot of growth opportunity for Coca-Cola.

More specifically, Coca-Cola intends to increase its current market share in the soft drink to 50% in the end of 2015 (Hofstede, 2012), in particular, it will invest heavily in the health drink product to grab this developing cliché market and to cater for consumer’s aptitude. Then, the whole group will achieve 50 billion USD sales revenue and 13 billion USD profit margin (Marcial, 2007).

Marketing research result

To stay competitive, Coca-Cola has done well in understanding and satisfying consumers. It have been found that customers expect more from their beverages. To fill this desire Coca-Cola has developed the Beverage Institute for Health and Wellness. This institute develops new product ideas that can contribute to their product line. In addition, Coca-Cola is capable of maintaining their market vitality, so they continue to do research that will benefit their consumers, as well as being profitable for the company.

Apart from flavor diversification, profitability in certain region has also been a major consideration. For instance, Coke Zero is a product that carries no carbohydrates or