Marketing Strategy Development The Coca-Cola Company

Question: Discuss about theMarketing Strategy Developmentfor the Coca-Cola Company. Answer: Introduction Coca-Cola is an American non-alcoholic beverage company founded in 1886 with Atlanta, GA., USA as the headquarters. They boasted of about 123,200 in 2015 and annual revenue of about US $ 44.294 billion (Wang, 2015). It is present in over 400 beverage brands including Maaza, Coke, Coke-zero, Sprite and Kinley; in about 200 countries worldwide. The company has distribution channels spread in these countries except in both Cuba and the North Korean republic. Coca-Colas mission is to refresh the world in mind, body and spirit and further to inspire moments of optimism and happiness through our brands and actions. The company values include collaboration with stakeholders, integrity, accountability, passion, diversity and quality (Waldemer, 2008). The company uses slogans such as creating value and making a difference in order to communicate its purpose in the markets within different countries. Coca-Cola uses two market orientation strategies; product, and market orientation. For product orientation, it focuses on uniform but high quality production process and products. The company protects its trademark by using a uniform formula for its beverages not accessible to its competitors (Sundar, 2012). For market orientation, Coca-Cola continuously reviews identified needs among the consumers and analyses them. Coca-Cola brand motivates buyers to purchase the companys products world over, creates customer loyalty, confirms the companys credibility and further, connects the target customers with the Coca-Cola products and services. 5Cs Analysis for Coca Cola Company SWOT Analysis First, Coca-Colas s major strengths and key resources include its worldwide presence, the large network of product distribution, customer loyalty and its marketing orientation strategies. Further, its large market share to date gives the company huge yearly revenue approximated at US $ 44.294 billion in 2015. The companys weaknesses include growing health concerns on carbonated beverages, considered unhealthy (Waldemer, 2008). The fluctuation in foreign currency also affects the returns of the company in these countries. Further, the company currently is affected by water scarcity in countries where droughts are rampant. This also has led to a preference of bottled water produced by other companies other than the companys carbonated drinks. Despite the above weaknesses, Coca Cola boasts of opportunities including huge markets in developing countries, opportunities to venture in packaged water sale, and the continuously improving road networks (Sundar, 2012). This increases the compan ys potential to expand its distribution channels further and cheaply. Threats facing the company include competition from Pepsi and other smaller companies, water scarcity, continuous preference for noncarbonated drinks. Other threats include the deterioration of dollar value in several developing countries and further, the possibility of entry of other new firms. Customers Coca-Colas customers include people of all ages including children and adults from all races and gender. The products are bought by different classes of people all over the world. However, majority of the customers are from either middle or high class as they have enough money to spend on luxuries (Waldemer, 2008). The company also trades in fruit juices and diet drinks in order to cater for the needs of the wide range of customers. Thus, the typical behaviour of these customers includes a liking for refreshments and beverages. Collaborators The major suppliers to the Coca Coal Company include the NutraSweet Company, Ajimoto Company Inc., both of which are the primary sources of aspartame, a sweetener, among other ingredients. Other suppliers include Tate Lyle PLC, chemical manufacturing industry suppliers, containers and packaging suppliers, suppliers from the food industry and further, suppliers of scientific and/or technical instruments. Competitors Competitors of the Coca Cola Company include the Monster Beverage Corporation, Pepsi Company, Dr Pepper Snapple Inc., and the Suntory Beverage Food Limited. The competitors also deal in the sale of non-alcoholic beverages using their own brands. However, Coca Cola brands stand out as the most valuable beverages in the market. The growing popularity of some of these brands worldwide poses a threat to Coca-Cola as they are venturing also in noncarbonated non-alcoholic drinks. Context While Coca-Cola faces little political impacts, its distribution channels get affected in times of political turmoil in market states. The company ensures that its dealers operate legally across the world and thus little legal problems for the company (French Gordon, 2015). The customers are currently more health-conscious thus particular in the type of beverages they purchase. Coca-Cola also contributes heavily to charity. Technological factors include research and development of novel products, high-rate technological changes, automation of process and innovation. This has enabled Coca-Cola to be very efficient and thus ahead of its competitors in addition to its worldwide presence. How the Coca-Cola Collects Info on the 5Cs The Coca-Cola Company has a global research and development department with 6 branches across the world. This particular department is headed currently by Nancy Quan, who is the Global Research Development Officer. The six worldwide research centres have been usually linked to hubs of external technology assessment and/or acquisition (Foster, 2014). These connect Coca-Cola to potential partners, other entrepreneurs, technological start-ups and researchers in the universities. The company utilizes a well distributed, connected and shared Research and development model. This helps the company to understand any emerging needs of customers across the world, the performance of the companys products in comparison to that of competitors like Pepsi Co, Dr Pepper Snapple Inc. among others. Each of the six Coca-Cola research centres closely work with the existing regional marketing teams so as to address the local-based needs while focussing on particular areas of innovation (Elmore, 2013). T he company boasts of now reaching the worldwide market with full understanding of customer needs and preferences as compared to the strategies used by the competitors. The network of the RD centres and its collaboration with marketing teams enable the company to address the track a change in the business context. Political, technological, legal and economic factors are monitored by these teams and thus provide possible solutions to the company. The centres also have enabled the company to develop and launch novel technologies (Elmore, 2013). One of the centres include the Shanghai RD centre which developed the Minute Maid Pulpy Orange Coca-Cola brand in China that later spread to other parts of the world as a partly juice drink. Further, the research centres enable the company to understand the role the collaborators including suppliers, partners, distributors and retailers play in towards the performance of the company brands across the world (French Gordon, 2015). Through time-to -time market research studies, the company is able to understand the factors influencing the performance of the collaborators in regard to the business context within their areas of jurisdiction(French Gordon, 2015). The company thus provides any necessary adjustments on its policies except that it remains steadfast to its values of integrity, accountability, and quality, among others. Worldwide suppliers of ingredients, technologies and consultancies are picked and/or appraised based on the recommendations of the marketing teams, technical staff and the information provided by the regional research and development centres. Developing Marketing Strategy Choice of Target Markets Choosing a target market for products and services includes deciding first on the general market and/or industry to pursue. In this case, the Coca-Cola Company mainly targets beverage consumers and thus remains in the non-alcoholic beverage industry. The target market for the Coca Cola product can be divided into smaller characteristics in regard to the customers. Geographically, the company can sell its products in any part of the world. This is because currently, it has presence in more than 200 states except Cuba and North Korea (Elmore, 2013). Demographically the beverage company can sell its products to people of all ages including children and adults. Demographics of the market thus favor the company as it has a worldwide acceptance. Majority of the customers are however from the middle and high class as they are the ones who can afford the beverages as a luxury. In regard to the buying situation, a company must clarify the desired benefits of the products and services to be of fered to the customers (Elmore, 2013). Among the desired benefits of Coca Cola beverages include health benefits through Diet Coke that has nutritious value. The company also can sell its branded fruit juices like Minute Maid among other noncarbonated products. Customers buy the products, when they first asses their condition. Value Proposition for the Target Market According to Foster (2014), value proposition refers to the set of benefits which can satisfy the existing consumer needs. The components of value proposition include the products/services being offered to the target market, the target market itself, and further, the value that the services/products provide. These include for instance, saving on time, saving on expenditure and improving individuals health. Coca-Cola drinks provide benefits such as quenching thirst using non-alcoholic drinks, drinks for energy, nutritious value of the Diet Coke. The products are also relatively cheap and provided in different quantities for affordable purchase. Consumers thus, safe money through purchasing coke products which offers cheaper and standard prices for them The Positioning Statement for the Target Markets A properly conceived positioning statement comprises first, the target market and thus describes the attitude and demographic factors. Secondly, it should delineate reference frame. Thirdly, it should point out the benefits of products. Further, positioning statement provides potential consumers with reasons that can make them believe that the brands in the market can deliver the promises (Foster, 2014). Coca-Cola Company has individual brand positioning statements, except the general positioning statement of the company; creating value and making a difference. Another slogan reads to inspire moments of optimism and happiness through our brands and actions (Foster, 2014). These slogans not only target the customers but the collaborators of the company to relevant action; purchase and due supply respectively. Developing Marketing Tactics The Marketing Mix Product In working out an effective mix, companies must first, provide quality products to the market made using high quality raw materials. High quality services and products must be considered (Collier, 2014). A business must provide products in different quantities and types in order to fit all the options of the target market. Brand names should also be made special but easy for customers to grasp. The name of a brand may match its characteristics and the target audience preferences. For instance Diet Coke or Coke Zero refers to Coca-Cola brands which offer nutritious benefits and contains zero sugar respectively (Sundar, 2012). Packaging of the products must be done using high quality containers and effectively in order to instill confidence in the consumers of the products. Timely quality services remains a major requirement for businesses and this is part of Coca-Colas main strength as it offers its services all over in its areas of reach (Solis, 2011). Through its distributors and af filiated local retailers, the company is able to also provide warranty to its products. Any bottled beverage that shows signs of breakages and expiry is returned to the regional bottling companies and replaced. Price Setting of prices for products must consider a number of factors. First, a business must consider the quantity of goods and the extent of services provided and assigns them the right price. If the prices are not regulated, the company has a moral responsibility to avoid over-pricing of goods (Solis, 2011). Secondly, discounts must be considered for purchases made in bulk and/or where the company has middle men who take the goods and services to the market. The discounts allow the retailers and distributors to make their own profits while earning the company due revenue. The Coca Cola Company offers discounts to its distributors and retailers worldwide by lowering the prices of their products in the production industries to allow them trade in the market. Being the most valuable non-alcoholic beverage brand, Coca-Cola sets its prices in line with the quantity, and most of its products are affordable to even lower class consumers (French Gordon, 2015). Businesses require credit servic es and this must be considered in pricing of products for sales. Coca Cola like other companies sometimes allow distributors and retailers to take products in bulk on credit terms and agree on later but assured payments. However, quick payments for consumers at the end of the supply chain are preferred as buyers buy direct from retailers and small scale beverage vendors in the localities. Place Place in this context describes the need for strategic product /service positioning. Using wholesalers and retailers is encouraged for huge businesses. They aid in distribution and sale of products on behalf of a business (Blythe, 2009). More wholesalers and retailers reflect boosts the potential of making more profits from the business. This also reflects a high demand for the products, which calls for a higher supply of the same. The Coca Cola Company has a wide market and a high demand that is relatively stable across the world. The favorable business situation in majority of the countries it exists in has made the company have many retailers and wholesalers for its products. The company has numerous subsidiary distribution companies that feed the wholesalers and retailers with the company products (Collier, 2014). The length of a distribution channel influences the efficiency of marketing tactics. While the company is based in the US, it sells its standardized ingredients to regi on-based bottling companies which they certify to manufacture and sell their products. These final products are thus distributed locally to the customers in most areas in the worldwide market. Transportation is thus done distributors who apply to the marketing teams and local Coca Cola bottling companies for permission to distribute the products at a particular fee and discount. Promotion Businesses can promote their market deliverables through the use of different media alternatives available (Blythe, 2009). These include Television, radio, magazines, newspapers, billboards among others. The coca Cola company also relies on these media alternatives to reach its potential and loyal customers across the world. The company prepares regional media promotional messages on its brands depending on the type of language spoken within the areas targeted by the company marketing teams. The messages must thus be clear and easy to understand, incorporated with the positioning statements and slogans. The Coca Cola Company is in charge of its worldwide media budget and thus enables its subsidiary companies to have their goods locally and internationally recognized (Collier, 2014). Personal selling is also important and it has been embraced in the Coca Cola Company through allowing vending of Coke products. Sales promotions are done through roadshows in urban centers and even in rur al areas. A companys management must ensure that the sales promotion being carried out is effective within the area. References Blythe, Jim (2009). Key Concepts in Marketing. 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