MARKETING PLAN

COMPANY: Coca – Cola

Contents
Executive Summary:- ...............................................................................................................................3
Mission:- ..................................................................................................................................................3
Vision:- .....................................................................................................................................................3
Objectives:- ..............................................................................................................................................3
Introduction:- ...........................................................................................................................................4
Product and services:- .............................................................................................................................4
SWOT ANALYSIS:- .....................................................................................................................................5
PESTEL Analysis:-......................................................................................................................................6
Porter’s Five Forces Analysis:- .................................................................................................................7
Marketing mix:-........................................................................................................................................8
Customer analysis- STP Analysis:- ..........................................................................................................10
Segmentation:- ..................................................................................................................................10
Targeting:- ..........................................................................................................................................10
Positioning:- .......................................................................................................................................10
Competitors:- .........................................................................................................................................11
Market share:- .......................................................................................................................................12
Financial analysis:- .................................................................................................................................13
Executive Summary:-
The following marketing plan forms the basis for the introduction of an innovative new
product by the coca- cola company. The analysis allows us to outline the best strategies to
follow for the achievement of the company‘s strategic goals. “Bubble Buzz” will be marketed
as a unique functional drink while striving to reinforce the company’s status as the leader in
innovation and successful product launches. The marketing strategies with a forecasted sales
growth prospects of 7.3% over the next 4 years. , while satisfying the needs of the still
unserved market for ready to drink bubble tea. Success will be reflected by a sizeable capture
of market , while strategically carrying the company up to the top spot as the market leader in
the functional drinks segment of soft drinks.

Mission:-
“our roadmap starts with our mission, which is enduring. It declares our purpose as a
company and serves as the standard against which we weigh our actions and decision. To
refresh the world… to inspires moments of optimism and happiness. To create value and
make a difference .

Vision:-
“To achieve our mission, we have developed a set of goals , which we will work with our
bottlers to deliver people. Inspiring each other to be the best we can be by providing a great
place portfolio , offering the world a portfolio of drinks brands that anticipate and satisfy
people’s desires and needs partners and building mutual loyalty planet. Being a responsible
global citizens that makes a difference by helping to build and support sustainable
communities profit maximising long term return to shareholders, while being mindful of our
overall responsibilities productivity. Being a highly effective , learn and fast moving
organization”.

Objectives:-
1. To create a service based company whose primary goal is to exceed customer’s
expectation.
2. To increase the number of clients served by at least 20% per year through superior
performance and word of mouth referrals.
3. To develop a sustainable financial management company that generates value for
their customers.
4. To stay at the forefront as the market leader in innovative products introduction and
successful products launches.
Introduction:-
The coca- cola company is an American multinational beverage corporation. The coca- cola
company has interests in the manufacturing, retalling and marketing of non-alcoholic
beverages concentrates and syrups. The company products coca- cola invented in 1889. The
beverages will have a green tea base with enhanced fruit flavours. It will bring an entirely
unique drinking experience to its customer. According to the company’s 2005 annual report,
it had sold beverages products in more than 200 countries that year. In 2010 it was announced
that company had become the first brand to top 1 billion in annual UK grocery sales. In 2017,
company sales were down 11% from the year before due to consumer tastes shifting away
from sugary drinks.

Product and services:-

The coca cola company sells the products form of soft drinks include beverages concentrates
and syrups, with major beverages products. Business has more than 300 beverages all over
the world with a major to be coke , Fanta, lift, sprite, Fruitopia 100% fruit juice, and powder.
The coca cola company beverages its packages into plastics bottles of sizes 2 litres, 1.25 litres
600ml and 300ml, these are also available of aluminium cans of 375ml. coca- cola is well
known trademark , recognized by 94 % of the world population . business was successful and
has an excellent reputation. The price of the coca- cola are various according to size, place
and packaging. May be if coca- cola sells in the school will have different price if the coca-
cola sells in the bazar or market.
SWOT ANALYSIS:-
1. Strength :-
a. Company has an incredible brand identity. It’s a home name by millions around the
world.
b. 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.
c. Coca- cola has a nearly $80 billion company evaluation. Sales saw an increase when they
launched their campaign of putting customer names on their bottles.
2. Weakness :-
a. Coca- cola ‘s major competitors is Pepsi. But unlike Pepsi which has branched away from
the soda only model of revenue, coca- cola has yet to develop a food or snack. This put
them behind Pepsi.
b. People have become concerned with obesity and diabetes carbonated drinks are a big
influencer of these health complications. Coca- cola as a major carbonated drink
manufacture can contribute to obesity epidemic. They haven’t addressed or found a
healthier solution yet.
3. Opportunities :-
a. Company can create new products and diversifies their current offerings. They have the
brand identify, customers manufacturing and evaluation to back this up. It’s possible to
find niches untouched by Pepsi to develop products especially in the heath food spaces.
This way they branch out from soft drinks.
b. Coca- cola is in hundreds of countries. They could focus on moving into developing
countries with humid temperatures. These countries will enjoy the treat of coca- cola in
a way developed countries already accustomed to the choice, may not.
4. Threats:-
Coca- cola was suspected pesticides in their water. But water is also becoming limited
because of climate change. Considering coca- cola needs plenty of water to create their
soft drink empire should water become scarce, they would be in trouble.
PESTEL Analysis:-
Political:-
Coca- cola can have a direct impact by the laws and regulation of the government on the food
products. These laws may vary from country to country. Earlier due to some trade sanctions
of US and Burma, the sales of coco- cola was banned in Burma. After nearly six decades the
sale was started in the year 2012 when the sanction was suspended. There are still two
countries Cuba and north Korea where Coca- cola cannot be bought or sold due to political
condition of these countries. The recent tiff between US and China resulting in a trade war
has a major impact on the prices of coca- cola canned products. The company is facing cost
pressure due to rise in the tariffs on steel and aluminium.

Economic:-
Coco –cola dominates the market with almost 50% market share in thye carbonated
beverages market. Despite all the increase in price due to the tariffs, it has reported 8%
growth in the net revenue in quarter 3 of the financial year 2019. Though the margin was
unfavourably impacted by acquisition of company like Chi ltd in Nigeria. The new trade
agreement between US, Mexico and Canada is supported by the company for free and fair
trade between the nations. The demand of consumers has shifted from sugary drinks to low
calories drink. The coca- cola company has reported 8% increases in retail value of its
products like diet coke and zero sugar. The CEO of the company said that coke zero sugar
has had its best year in 2018 and grew the fastest. The demand of these products is expected
to rise in the future.

Social:-
Coca- cola has always come with some social campaigns to connect to its consumers. In 2014
it had launched a campaign #sharecoke which was mega successful . people were
encouraged to find bottles with the name they feel connected to and then give it to their
families or friends and share the same on the social media platform with the hash tag share
coke. Coca- cola store also let the customers customize their name on the bottles. The brand
connected to the consumer on the personal level.

Technological:-
The Coca- cola company has been experimenting in its products line. It is coming with first
ever ready to drink frozen beverages in Japan. The company has a innovation driven culture.
It invites consumers to play games online and associate with the coca- cola products. It uses
social networking technology to stay young fresh and current. The company provides
freestyle dispenser which allows consumers to create its own beverage in various
combination through computer like interface. It also saves data for market research which
will be further used by the company to understand the taste and preference of the consumers.
it uses online advertising to make you feel like you want the product.

Legal:-
Coca- cola has faced trouble due to quantity of caffeine in its products in different countries
in the past. The company was also accused of paying low wages and inappropriate treating
their employees which attracted various protests from labour unions. It has alleged suits
against racial discrimination to its employees mislabelling of one its products as a
pomegranate and blueberry juice in spite of apple and grape juice has led it to an serious
concern. Issues regarding packaging, water usage and air pollution has been a topic of
concern for the company. It should majorly focus on its corporate ethics. They are of primary
concern to the coca- cola company.

Environmental:-
Coca- cola has faced massive amount of backlash for the reason of draining off the ground
water in India. It has been reported as the biggest consumers of freshwater in the world. It has
taken steps to eliminate these problems and reduce its carbon footprints to near zero. It has
used water smart farming methods like RAIN and CARE which uses as less water as
possible. Coca- cola company are also turning to solar energy to make their beverages in Fiji.
In their sustainability report 2018 they said they will be working towards a world without
waste and set various goals for 2020 like percentage of improvements in water efficiency by
25% which is at present 18%.

Porter’s Five Forces Analysis:-

1. Bargaining power of suppliers:-
The bargaining power of suppliers of coca- cola is weak. It is also because the number
of suppliers is high and the switching costs for coco- cola low. While coca- cola can
easily switch from one supplier to another, it is not possible to switch away from
coca- cola as easy. That can lead to losses for any of the suppliers while there are
several suppliers is small. Moreover, forward integration is a distant possibility for
most of its suppliers.
 2. Bargaining power of customers :-
The bargaining power of customer in case of coca- cola is low. Individual customers
generally buy small volumes and they are not concentrated in specific markets either.
However, the level of differentiation between Pepsi and coca- cola is low. Mostly
they sell similar flavours switching costs are not high for customers and still the two
brands enjoy high brand loyalty. The customers of coca- cola are not price sensitive.
3. Threat of new entrants:-
In the beverages industry there are several factors that discourages new brands from
entering. Growing a brand overnight is impossible. There are significant investment
to be made. From operations to marketing every part requires a large investment.
Some local brands may start it at smaller scale and still marketing and hiring qualified
staff requires generous investment. The level of customer loyalty in the industry is
moderate and it will take some time. So, while new entrants can compete with brands
like coca- cola at a smaller or local level, to build a brand as big is a big task requiring
both capital and skilled human resources.
4. Threat of substitute:-
Main substitute of coca- cola products are the beverages made by Pepsi, fruit juices
and other hot and cold beverages. The number of substitutes of coca- cola products is
high. There are several juices and other kinds of hot and cold beverages in the market.
The switching cost are low for the customers. Apart from it, the quality of the
substitute products is also generally good.
5. Competitive Rivalry between the Existing players:-
There are two majors players in the soda industry and they are coca- cola and Pepsi.
There is intensive rivalry between the two major players. There are few smaller
players too but they do not pose a major competitive threat. The two main players are
nearly of the same size and they have similar products and strategies. The level of
differentiation between the two brands is also low and therefore the price competition
is intense. People have already heard of the coca- cola wars. So. The level of
competitive rivalry between the existing firms is a strong force.

Marketing mix:-

1. Product:-
 Coca- cola has a large product portfolio of 500 sparkling and still brands. It provides
nearly 3,900 beverages choices its leading product coca- cola is one of the world’s
most recognized and valuable brands. There are 21 billion brands in its portfolio of
which 19 are available in low or no calorie choices.
2. Place:-
Coca- cola has an extensive beverages distribution systems. Its products are sold in more than
200 countries across 6 operating regions including Europe, Latin America, North America,
Pacific, and Africa. Coca- cola sells an average of 1.9 billion servings each day. Traditionally
the company has relied on its bottling partners for the packaging and distribution of its
products.

3. Price:-
Pepsi is the arch-rival of coca- cola and the close competitor in the beverages
segment. Both brands price their products competitively. Prices are not too high to go
beyond the average customers reach and nor too low to give an Impression of low
quality. Coca- cola’s pricing strategy is aimed at driving brand loyalty. Moreover due
to the decreasing demand for soda products, price competition between coca- cola and
Pepsi has gotten even intense. The prices lower as the size of the packages grows
bigger. Bulk buyers of the product may have to pay significantly lower prices than
ones buying single coca- cola products.
4. Promotion :-
Due to the intense competition in the soda industry, the top brands spend much on advertising
to drive higher sales and revenue. Coca- cola’s marketing expenditure in 2016 was $4 billion.
In 2018, the marketing expenditure grew to $4.1 billion. It utilizes both traditional and
modern channels to promote its brands and products. Coca- cola launched its taste the feeling
campaign in 2016 which unites all of its brands. This one brand approach taken by coca- cola
marks a significant shift from its previous marketing strategy. Apart from TV ads and
outdoor ad campaigns, the company serves its ads across the internet and on social media.
Customer analysis- STP Analysis:-
Segmentation:-
Objective of such a process is to analyse and understand market, identify opportunities and
use or develop competitive edge to capitalize on those opportunities. The coca- cola company
segments the customers based on the following criteria:-

Geographic Segmentation:- company has segmented the worldwide market on the basis
of geographies. There are various divisions created for major regions of the world and heads
of each divisions report to the parent company. Lot of autonomy is given to each division to
run the operations.

Place of consumption:- company segment the market on the basis of the place of
consumption of the beverages. Most of the consumption takes place on premise such as
cinemas, railway station, restaurants etc.

Product type:- company segment the market on the basis of the types of products brought
by the customers. The market currently provide majority of the revenues, but the promotion
of non- cola products is increasing.

Demographics:- coca- cola segments the market on the basis of the demographics. The
segmentations is on the basis of age as well on the basis on income.

Targeting:-
Coca- cola target different segments with different ads. Primary market of coca- cola is
younger people in the age bracket 10-25 with people from 25-40 comprising of secondary
market. Coca- cola products are targets towards people who want strong flavour, while diet
cola and its various are targeted towards the sub segment that is health conscious.

Coca- cola uses non- cola beverages to target the health conscious segment of the market.
Some of the products such as sprite specially target teens and college going youth while
others such as Limca target young working populations.

Positioning:-
Company position its products as refreshing and thirst quenching. The products are said to
bring joy as apparent from coca- coal’s latest tagline-little drops of joy. The products are
associated with having a good time with friends and family and enjoying everyday life.
Competitors:-
1. Pepsi:-
Without a doubt one of the strongest coca- cola competitors is Pepsi. One of the
reason these brands fight tooth and nailis because both of them are very strong in their
distribution and have excellent marketing and sales policies. As a result, we will find
that the maximum market share is of these 2 be it any country.

2. Red Bull:-
Red Bull gives you wings , quite literally, Red Bull is one of the strongest growing
energy 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. Red Bull is another brand
which is known for its strong distribution channel.

3. Fanta:-
Again a sub brand of the coca- cola company and one of the most widely loved fruit
flavoured carbonated drink. Fanta has close to 100 flavours
being used across various countries. Fanta is also known for
 a differentiated marketing message in each of the countries which it operates in.

4. Sprite:-
Sprite originally started as a competitor to 7 up but it has ended up being a large
market share holder of soft drinks market and although it from the house of coca-
cola, it is one of the strong competitors in the market. Sprite’s clear formula has
helped the brand amass an excellent fan following and it has captured the market
which previously belonged to Limca.

Market share:-
Financial analysis:-

In case of coca- cola the gross profit margin is very high. Management has realized that their
product commands premium and can change it. The number that they charge is not
astronomically high as in technological sector, because they produce the syrup that it then
sold to bottlers to put into the single serving packaging.