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 Marketing Environment Of The Coca

Company
Submitted by vickyf on March 25, 2011

• Category : Business and Economics

• Words: 1656 | Pages: 7
• Views: 985
• Report this Essay

Analyse the marketing environment of the Coca Cola Company and critically eva
Coca-Cola Company is responding to its changing environment by adapting bran

Word Count 1510

Introduction
The Coca-Cola Company, the world’s leading manufacturer in the beverage indu
in 1886 by the pharmacist John Pemberton in Atlanta, USA. Today the company
in more than 200 countries with a portfolio of more than 3300 products and 1600
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11/19/2019
yMarketing
p Environment of the Coca Cola Company | Coca Cola | The ,Coca Cola Companyy p y
in more than 200 countries, with a portfolio of more than 3300 products and 1600
Coca-Cola’s missionSearch is to create best quality  products that will manage
optimism while they target to refresh the whole world. The Coca-Cola Compan  to inspire


the marketing channels in cases like planning, pricing, promoting and distributin
company has been operating successfully for over a century as it has carefully an
and the external business environment, in order to follow the most suitable marke
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that will asses effectively the external threats and opportunities. Coke’s effective
its internal and external environment preserves its survival in the soft drink indus
Cola Company, Heritage,2011).

Assessing the Internal and External Business Environment

Coca-Cola’s internal environment offers efficiency in the production process, by
 personnel management skills and proper communication channels. The company
inefficiencies in any phase of the production line as it constantly monitors the int
Organizational environment.
Project Report on Coke Marketing Marketing Plan Business Strategy 5 Marketing
Structure of The…On Marketing… Strategies
the other hand the "Rewaj
Coke’s external Boutique"
business on Coca Colacan affect
environment Environment Kfc
the whole
consists of powerful forces, which can bring changes that create opportunities an
 beverages market, such forces are fluctuations, changing in consumers habits and

restrictions etc.
PESTEL Analysis
The pestel analysis is a powerful tool for evaluating the marketing environment a
Political, economic, social, technological, environmental and legal issues, like th
which influence the acquisition of inputs and generation of outputs (The Coca-C
Sheet, 2011).
Political: Unfavorable political conditions in international markets can hurt Cok
71% of its net operating revenues derive from sales in international markets. Gov

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changes may damage consumer confidence and reduce his purchases.

Economic: Changes in foreign currencies fluctuations and interest rates affect fin
Related titlesmost of Coke’s revenues, expenses and liabilities are in other currencies than the
Social: Trends for healthier lifestyles affected the non-alcoholic beverage industr

the demand forchange:

Technological healthierNew
beverages such aslike
technologies bottled water
internet canandbe diet
usedsodas.
for effective a
technology’s cans and plastic bottles that come to replace the prior glasses bottles
 product more
more attractive.
attractive. Apart
Apart from
from all the
the above new
new technology
technology offers
offers best qua
Environmental: Water’s scarcity can affect the production of all of its products as
ingredient, causing increasing production costs that can affect the long run profit
Organizational Catastrophic events
Project Report on likeMarketing
Coke major natural disasters
Marketing Plan can Business
affect the production
Strategy as they
5 Marketing
Structure of The… Marketing…
to raw materials. Strategies "Rewaj Boutique" on Coca Cola Environment Kfc
Legal: Changes in laws and regulations like the legal requirements that demand e
nonrefillable beverage containers can also create additional costs. Jurisdictions fo
warning requirements about the chemical content can affect the product demand.
All the forces above are part of the macro marketing environment that affects all
Assessment of competitive forces
The nonalcoholic beverage market is a highly competitive industry, where plenty
 businesses
 busines ses compete
compete in multiple
multiple geographic
geographical al areas.
areas. Competitive
Competitive products
products cover
cover a
nonalcoholic beverages like water,You're Reading
juices, fruit drinks,a energy
Preview drinks, coffees, tea
drinks. Great competitors of the company can be considered firms like PepsiCo.I
Groupe Danone, Kraft Foods and Upload your (The
Unilever documents to download.
Coca-Cola Company, Investors,
competitive factors have major impact in Coca-Cola’s business can promote sale
 product innovation
innovation and increased
increased efficiency OR
efficiency in product
production
ion line. Coke’s competit
competitii
the wide acceptance of the consumers, devoted associates, increased marketing c
Become a Scribd member for full access. Your
great network of bottlers and distributors.
The micro marketing environment first 30 days are free.
The competitors mentioned above are part of the more specific forces that influen
Continue
the organization such as suppliers, marketing for Free buyers and publics.
intermediaries,
Suppliers: Coke preserves a stable relationship with its suppliers who provide the
from raw materials to machinery, goods and services. Its suppliers are obliged to
manner and to preserve the standards applied by the law (The Coca-Cola Compa
Citizenship/suppliers, 2011).
Marketing Intermediaries: Coca-Cola does not have the ability to sell directly to i
every case and for this reason it uses intermediaries in its distribution. The compa
importance of the existence of the intermediaries dealing them as partners and no
channels and for this reason every Coke’s provider such as Mc Donald’s is a pow
support.
Buyers: Buyers are the most important factor in the Coke’s marketing environme
is the prior target of the company. A company such as the Coca-Cola can target t
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customer markets as it can serve individuals, business markets for further process
such as supermarkets,
international markets.
 to provide to their 
Search governments that wants citizens with
 go

Publics: Coca-Cola knows the value of the public groups that can affect the organ
to satisfy its target and for this reason aiming to empower 5 Million women entre
Related titlesas women entrepreneurs make a vital contribution to Coca-Cola (The Coca-Cola

Organizational Project Report on Coke Marketing Marketing Plan Business Strategy 5 Marketing
Structure of The… Marketing… Strategies "Rewaj Boutique" on Coca Cola Environment Kfc

dynamic,2011).
Branding as a response to changing marketing environment
Coca-Cola’s managers after careful accession of the forces above respond to the new deman
enhancing their brand portfolio. Coke’s wide range of products tries to cover the needs of e
market that act. In some markets the trends force the consumers to seek for healthier produc
as a result Coke creates diet sodas and nutritional drinks. Its portfolio of more than 3300 be
tries to cover all these varied customers global needs (The Coca-Cola Company, Brands, 20

Coca-Cola as a manufacturer all this years try to develop its products in a way that preserve
constant quality which is the trade mark image for its brand. It spends much money in order
 promotee and to preserve
 promot preserve the loyalty
loyalty to its brand name
name and follows
follows differe
different
nt marketing
marketing strate
strate
acquire its respective success.
A strong brand name leads to a global customer recognition and simplifies customer’s decis
reducing the purchasing risk. The rapid way by which the consumers are being informed ab
 brands through
through media
media or mouth
mouth to mouth
mouth words,
words, demands
demands the establis
establishment
hment of a brand nam
nam
Coca-Cola through its communication channels like media advertisement, public relations a
marketing strategies, delivers a complete opinion about its brands. This knowledge can be u
order to improve the communications consistency and to succeed greater sales. The high
competitive market that the beverage market is, often characterized by the exceed consume
advertising and promotion and that’s why the company spends about $2 billion a year on

marketing campaigns.
With its strong brand name, Coke markets its products globally. It has been connected with
You'reHispanics
Olympics as an official sponsor and elevated Reading a Preview
as one of its top priorities. Further
manages to transform Fanta into a global phenomenon as it is produced in 188 countries wi
Upload
flavors. Apart from this Fanta has been your documents
established to the Latinto download.
America where flavored sof
are norm. The same positioning with the Latin America Coca-cola has in many countries al
OR
the world promoting the message for good time and enjoyment. The slogans varied to the c
that Coke promotes its products for USA market the slogan is “the Coke side of life”, while
Become
China stands the “Fanta is an antidote a Scribd member
to everyday pressures for
pressures on full access
Chinese Your All the he
youth”
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Become
China stands the Fanta is an antidote a Scribd member
to everyday pressures for
pressures on full access.
Chinese Your
youth . All the he


advertisement mentioned above enables Cokefirst to create brand loyalty. Key elements like
Search  30 days are free.  
advertising for establishing a long-term brand image guaranteed the Coca-Cola’s succeeds.
Coke uses efficiently its brand as name, term, design, symbol making its goods and service
Continue
recognizable, its trademark is simply the word “Coke” andfor
anyFree
further recommendations ar
superfluity. Branding is a mean that influence buyers decisions and sellers purchases. Brand
loyalty is being proved by recognition preference and insistence and Cokes has made its di
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to all three aspects. Cokes recognition exists as there is no single consumer in the world tha
not familiar with its products. Cokes brand preference exists by the consumer’s preference w
 brand insistence
insistence is
is the denial
denial of the
the consumers
consumers for a substitute
substitute product.
product.

Conclusion
Coca-Cola’s marketing environment consists of external forces that affect directly or indire
firm’s acquisition of inputs such as raw materials and generation of outputs such as goods.
company’s broader forces that affecting the organization’s operations and the relationship w
customers in the market consist the macro marketing environment and are political decision
Organizationalinternational
Project Report on foreign
markets, Coke Marketing
currencies Marketing Planand interest
fluctuations Businessrates,
Strategy 5 Marketing
changes to the cons
Structure of The… Marketing… Strategies "Rewaj Boutique" on Coca Cola Environment Kfc
habits, promotion strategies through new technology, legal requirements like ecotaxes and

environmental changes that decrease the raw materials.

The forces that derive from the Coke’s internal environment consist the micro marketing
environment and affect the nature of the business. Ethical mannered suppliers, intermediate
Mc’Donalds, and faithful buyers made Coca-Cola to survive in a high competitive market,
its managers evaluate correct all the data mentioned above.
Changes in the marketing environment create needs for strategic change and likely Coca-C
managers manage till now to respond quickly to those changes as they identified the change

through the pestel

manufacturer analysis.industry.
in beverage After all it’s not random that Coca-Cola is the world’s leading

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