COCA-COLA CASE STUDY

COCA-COLA REPORT 2 COCA-COLA REPORT Contents 1. Executive Summary...................................................................................................................... 2. Background..................................................................................................................................... 3. Situational Analysis...................................................................................................................... 3. 3.1. Strengths........................................................................................................................... 3.1. Weakness.......................................................................................................................... 3.1. Opportunities..................................................................................................................... 3.1. Threats............................................................................................................................... 3. Marketing Environment Analysis............................................................................................ 3.2. Demographic..................................................................................................................... 3.2. Economic........................................................................................................................... 3.2. Natural............................................................................................................................... 3.2. Technology........................................................................................................................ 3.2. Political.............................................................................................................................. 3.2. Cultural.............................................................................................................................. 3. Customer Analysis................................................................................................................... 3.3. Target Market Segment................................................................................................... 3.3. Analysis off customer purchasing behavior.................................................................. 3. 4. SWOT Analyze......................................................................................................................... Competitor Analysis................................................................................................................. 3.4. PEPSICO.......................................................................................................................... 3.4. REDBULL.......................................................................................................................... Marketing Strategy........................................................................................................................ 4. Segmentation and Targeting Strategy.................................................................................. 4.1. Targeting........................................................................................................................... 4.1. Positioning......................................................................................................................... 4.1. Segmentation.................................................................................................................... 4.1.3. Geographic................................................................................................................ 4.1.3. Demographic........................................................................................................... 4.1.3. Psychographic........................................................................................................ 4.1.3. Behavioral................................................................................................................ 4.1. 4Ps – Marketing Mix...................................................................................................... 2 COCA-COLA REPORT Coca-Cola, or Coke, is a carbonated soft drink manufactured by The Coca-Cola Company. Originally intended as a patent medicine, it was invented in the late 19th century by John Stith Pemberton and was bought out by businessman Asa Griggs Candler, whose marketing tactics led Coca-Cola to its dominance of the world soft-drink market throughout the 20th century. The drink's name refers to two of its original ingredients: coca leaves, and kola nuts (a source of caffeine). The current formula of Coca-Cola remains a trade secret, although a variety of reported recipes and experimental recreations have been published. The Coca-Cola Company produces concentrate, which is then sold to licensed Coca-Cola bottlers throughout the world. The bottlers, who hold exclusive territory contracts with the company, produce the finished product in cans and bottles from the concentrate, in combination with filtered water and sweeteners. A typical 12-US-fluid-ounce (350 ml) can contains 38 grams (1 oz) of sugar (usually in the form of high fructose corn syrup). The bottlers then sell, distribute, and merchandise Coca-Cola to retail stores, restaurants, and vending machines throughout the world. The Coca-Cola Company also sells concentrate for soda fountains of major restaurants and foodservice distributors. 3. Situational Analysis 3. SWOT Analyze 3.1. Strengths Coca Cola has an incredible brand identity. It’s a home name by millions around the world. You’ll come across at least one of their product in over 200 countries. [ CITATION Kie16 \l 1033 ] Because of their known name, they have strong customer loyalty. The particular taste of Coca Cola makes it easy to identify and hard to find a substitute for their customers. [ CITATION Kie16 \l 1033 ] Over all these years of its existence, Coca-Cola has built an extensive network of Supply chain and Distribution Network. Present in over 200+ countries, it’s because of the strong supply chain and distribution network that you can get coca-cola even at the most remote places of the world. 3.1. Weakness Unlike Pepsi, which has branched away from the Soda-only model of revenue, Coca Cola has yet to develop a food or snack. This puts them behind Pepsi in terms of competition since Pepsi has Lays chips and other foods under their belt. [ CITATION Kie16 \l 1033 ] People have become concerned with obesity and diabetes. Coca Cola, as a major carbonated drink manufacturer, can contribute to the obesity epidemic. They haven’t addressed or found a healthier solution yet. [ CITATION Kie16 \l 1033 ] 3.1. Opportunities Coca Cola can create new products and diversifies their current offerings. They have the brand identify, customers, manufacturing, and evaluation to back this up. [ CITATION Kie16 \l 1033 ] Coca Cola is in hundreds of countries. They could focus on moving into developing countries with humid temperatures. [ CITATION Kie16 \l 1033 ] 2 COCA-COLA REPORT 3.1. Threats Consumers are giving up sweetened carbonated drinks and are moving towards health and energy drinks. This change in demand is likely to impact the sales of Coca-Cola as their major chunks of sales come in from carbonated drinks. [CITATION Hea18 \l 1033 ] There are number of local beverage manufacturers that are trying to eat away the market share of CocaCola. Companies such as Starbucks and Dunkin’ Brands Group have managed to place a dent in the company’s market share. [ CITATION Hea18 \l 1033 ] 3. Marketing Environment Analysis 3.2. Demographic Demography is a study of human is terms of size, density, location, age, gender, race, occupation, and other statistics. Demography is important to a company as people make up markets. Coca cola is produced for people of all genders, races, densities, occupations but not ages. Age is a factor that is relevant as the organization has to obey by certain laws and regulations. Coca cola stated that they will not advertise directly to children and will not be on children’s TV channels since its products have high level of sugar and are unhealthy. [ CITATION Sta15 \l 1033 ] 3.2. Economic Markets require buying power as well as people. The economic environment consists of factors that affect purchasing power and spending pattern of customers. Coca cola marketers have to keep track of the economy when there are changes and inflation is one of them. Consequently, Coca cola has been uncontrollable of increasing their prices. They must follow the economy to make profits. With this increase they risk losing customers who cannot afford their products because it is a desired product not a necessity. However, coke’s price has always been affordable to people around the world. 3.2. Natural Environmental friendly has always been deeply concerned by the government and society. In many countries around the world, air and water conditions are in danger. Marketers are aware of several trends in natural environment. Coca cola also has some plans to reduce the effects on environment. Firstly, Coca Cola say that they are always looking at ways on how to improve their packaging and use less raw materials when creating them. At the moment they use raw materials like petroleum and other fossil fuels to create their plastic bottles. To reduce their use of these fuels they have create a new ‘Plant Bottle’ packaging which will bring them one step closer in creating a completely petroleum free bottle. They aim to achieve this goal by 2020.[ CITATION Coc15 \l 1033 ] . Secondly, in every can or bottle, it is always stated if they recyclable and how to dispose of correctly without harming the environment. Finally, Bottles/ cans which are recycled has a positive effect on environment. 3.2. Technology Coca Cola are breaking into other markets with the help of technology. They are doing as much as they can on technical field- produced various applications for smartphones. They created an app called share a coke. The ‘Share a Coke’ campaign first launched in Australia in 2011, and involved changing the traditional wrapping around the Coca-Cola bottle to say ‘Share a Coke with…’ and a popular name. The purpose of the campaign was to create a more personal relationship with consumers and inspire shared moments of happiness. 2 COCA-COLA REPORT Psychological factors: Before customers make their purchase decision, the collect and identify information they needed. Senses delivered by enterprises result in the selective attention of customers. Customers get information of appearance, sound, taste, smell, touch of a product, and then choose their preferring one. These senses and information finally create sensation and perception in the mind of customers. Sensation and perception create basic acceptation of a brand, and learning and memory enhanced the acceptance. That how the psychological influences a brand, or a product, create to customers. Thoughts and decisions of customers may be affected and changed by the psychological factors and finally the whole customer behaviors are different. [ CITATION Lac14 \l 1033 ] 3. Competitor Analysis 3.4. PEPSICO Without a doubt one of the strongest coca cola competitors is Pepsi. One of the reasons these brands fight tooth and nail is because both of them are very strong in their distribution and have excellent marketing and sales policies. As a result, you will find that the maximum market share is of these 2 brands – be it any country. While Coca Cola restrains itself to include celebrities or any kind of socially popular individual in its advertising videos, Pepsi is all about displaying influencers. Pepsi has rich history in celebrity endorsement that includes professional athletes and pop stars, now growing to be impacting bigger audiences through collaborating with social media influencers list of Pepsi celebrity endorsers comprises Michael Jackson, Madonna, Ray Charles, Beyonce, Britney Spears, Kendall Jenner, etc. [ CITATION Luc18 \l 1033 ] 3.4. REDBULL Red Bull gives you wings, quite literally!! Red Bull is one of the strongest growing energy drink/sports drink and is amongst the strongest direct coca cola competitors in terms of brand valuation. The popularity of Red Bull is because of a wide adoption in the pub culture where Red Bull can be mixed in various drinks. Its taste is stronger and loved by Red Bull drinkers. Red Bull is another brand which is known for its strong distribution channel. It was one of the first entrants to popularize energy drinks to such a massive audience (Gatorade is targeted towards sports whereas Red bull is targeted towards the masses). Interestingly, amongst the top 6 direct competitors of Cocacola, Red bull is the only one not manufactured by Coca-cola or Pepsi. It is owned by an Australian company Red Bull GmbH.[ CITATION Hit19 \l 1033 ] 4. Marketing Strategy 4. Segmentation and Targeting Strategy 4.1. Targeting Coca Cola consider each customer as a target and a potential consumer. All age groups are being targeted but the most potential is the age group from 18-25 that covers around 40% of total age segments. More busy life style and mobile generation (youth) are considered to be the most important part of Coke’s consumers. 4.1. Positioning 2 COCA-COLA REPORT - Co-operate with retailer chain to prioritize product and integrated technology into shopping which creates customer satisfaction and retention. - Using different and attractive slogan over time. - Take opportunity on special occasion for marketing and brand recognition 2 COCA-COLA REPORT 4.1.3. Demographic Age and life cycle stage: - Coca-Cola Consumer wants and abilities change with age from 6 – 24 and 40+ years old. Gender: - Gender is also an issue needed to be given prior by Coca-Cola. Coca Cola targets both genders with its wide variety of drinks. This market is relatively large and is open to both genders, thereby allowing greater product diversification. Family size: - Coca-Cola makes a variation in their served bottle size into many ways such as 500ml, 1L, 1, 2L pack base on family size and consumption amount. - Income: - Coca-cola segments different income level such as: Low-income, company has small returnable glass for returning after use to reduce the cost in packaging and decrease the overall price. High income with can or bottle without returnable. 4.1.3. - Psychographic Focus on Busy, Modern and Mobile Generation. 2 COCA-COLA REPORT 4.1.3. - Behavioral Occasions segmentation help firm expand the usage such as: Tet Holiday and Summer 4.1. 4Ps – Marketing Mix Product: - Each design and logo of Coca-Cola has a flexible transformation over time period. Packaging: 2 COCA-COLA REPORT Coca-cola Co. (March 2018). Coca-Cola on the Forbes Canada's Best Employers List. Retrieved from: forbes/companies/coca-cola/#33cb186f438c Essays, UK. (November 2018). Company background and overview of Coca Cola. Retrieved from https:// ukessays.com/essays/marketing/company-background-and-overview-of-coca-cola-marketingessay?vref=1 Coca-Cola History │ World of Coca-Cola. (n). Retrieved from worldofcoca-cola/aboutus/coca-cola-history/ (“Coca-Cola Demographics and Consumer snapshot.numerator/brand/cocacola”) Insights | Numerator. (n). Retrieved from PlanBottle, CocaColaCo. ( 2015 ). Introducing Plan Bottle. Retrieved from cocacolacompany/videos/introducing-plant-bottle-ytaevvjxqwaz8 Frequently Asked Question, CocaColaJourney. ( 2015 ). What was the share a coke campaign. Retrieved from coca-colajourney.com/faq/what-was-the-share-a-coke-campaign Patel, Kunur. ( 2015 ). CocaCola Sportify parent global deal. Retrieved from adage/article/digital/coca-cola-spotify-partner-global-deal/234173/. Lucy. ( 2018 ) . Marketing Strategies of coca cola and pepsi which one is better. Retrieved from medium/@lucygevorgyan12/marketing-strategies-of-coca-cola-and-pepsi-which-one-is-better34ab13f60e9b [ CITATION Hit19 \l 1033 ] – Coca Cola Competitors. Retrieved from marketing91/cocacola-competitors/ Laccobuci. (2014). Marketing Management (MM), in Customer Satisfaction and Relationships. 4th Edition. London: Cenage Learning. Frue, K. (2016). SWOT Analysis of Coca Cola. Retrieved from pestleanalysis/swot-analysiscoca-cola/ SWOT Analysis of Coca Cola | Guide to perfect business strategy. (2018). Retrieved from heartofcodes/swot-analysis-of-coca-cola/ 2