Unit 2 : Marketing Essentials NSAB502B2

Submission Front Sheet

Assignment Code: …NSAB502B2…
Programme: BTEC Higher National Diploma (HND) in Business Marketing
Unit Title and Number: Marketing Essentials (Unit 2)
QFC Level: 4
Unit Code: R/508/0486
Credit value: 15 credits
th
Date Set: 16 September 2016
Name: ………………………………………….
Registration Number: ……………………………………………

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I certify that the work submitted for this assignment is my own. Where the work of
others has been used to support my work then credit has been acknowledged. I
have identified and acknowledged all sources used in this assignment and have
referenced according to the Harvard referencing system. I have read and
understood the Plagiarism and Collusion section provided with the assignment
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Unit 2 : Marketing Essentials NSAB502B2

Executive summary
In this assignment, the important roles and responsibilities of Coca-Cola Company’s marketing
function and the relationships between roles and responsibilities of marketing department with
other functional units. The impacts of other functional units on marketing have been analyzed.
Comparing the ways of applying different marketing mix has helped to understand the marketing
mix used by Coca-Cola Company. In addition to this, the difference between the usage of 7 P's
of marketing mix by Coca-Cola and Pepsi as competitors to compete in the market has been
understood. This report helps to understand the marketing mix to achieve the business objectives
of Coca-Cola. As a manager of Coca-Cola Company, I have set the objectives and strategies to
perform the marketing plan for Coca-Cola Company. For my company I have segmented the
market and selected the target segments to achieve various goals and objectives. In case
performing the function, I have used situational analysis tools and techniques, allocated
resources and created marketing strategies.

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Table of contents

Introduction: 4
LO 1: Explaining the various roles of marketing and the interrelation with an organization’s
functional units: 4
P1: Explaining the various key roles and responsibilities of marketing function of Coca-Cola: 4
P2: Explaining the way of roles and responsibilities of marketing to relate with wider
organizational context: 7
LO 2: Comparing the ways of use of marketing mix elements (7Ps) to attain business objectives:
8
P3: Comparing the ways to apply marketing mix towards the planning process of marketing to
attain business objectives: 8
LO 3: Development and evaluation of a basic marketing plan: (Refer to PPT) 11
P4: Production and evaluation of a basic marketing plan for an organization: 11
Conclusion: 13
Reference List: 14
Appendices: 16

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Introduction:
Marketing is the set of institutions, activity and processes for making, interacting, delivering and
exchanging specific offerings, which have value for the customers, partners, clients as well as
society at wide. According to (Kotler, 2012, p.50), marketing is related to the science and arts of
making, exploring and delivering value according to the needs of a targeted market at a profit.
Marketing orientation means the philosophy of a company, giving focus on the inventing and
meeting the desires and needs of customers through its products. The meaning of marketing
process is to identify market opportunities, select target markets, develop relevant marketing mix
and managing the effort of the marketing (Jobber and Chadwick, 2012, p. 66). The learner
considers the use of various environmental analyses related to macro and micro levels.
Moreover, the learner will investigate the necessity of market segmentation and the way to lead
the recognition and total specification related to target groups. According to the consideration of
buyer’s behavior, the learner focuses on the main elements of original as well as extended
marketing mix. The marketing mix covers the introduction to the idea of PLC, development of
new product, pricing strategies, distribution patterns as well as promotion mix. Coca-cola, UK
has been chosen as a case study in this present report.

LO 1: Explaining the various roles of marketing and the interrelation with an

organization’s functional units:

P1: Explaining the various key roles and responsibilities of marketing function of Coca-
Cola:
Coca-Cola is one of the top most soft drink companies in the UK, which uses the roles and
responsibilities of their marketing function in a specific way. Coca-Cola provides respect and
supports the roles of parents because they give focus to create the accurate dietary choices for
own children. The roles and responsibilities of marketing function of Coca-Cola depend on two
types of marketing environment named as the micro environment and macro environment
(Kotler and Armstrong, 2013, p.78). Another important responsibility of marketing function does
not sell Coca-Cola to the youths of less than 12 years of age.
The micro environment consists of various factors like the company, customers, suppliers,
competition. In the case of the micro environment, the company has strong ethic like treat the
people well, help the people to develop and provide the people a rewarding life. Coca-Cola

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excels in their performance, develop their skills and move towards career goals (McDonald and
Wilson, 2011, p.44). According to the customers, Coca-Cola gives focus on brand love and they
believe that in the case of the long term the loyalty of customer will increase the strengthen their
market position. In a case of Coca-Cola, a stable, sound and ethical supply is important to
achieve success. For the competition, Coca-Cola competes with Pepsi with the pricing strategy
because Pepsi had 14% growth related to net revenue in the year of 2011. Pepsi sells the similar
types of products to the customers and becomes number one competitor for Coca-Cola (Coca-
Cola UK, 2016).

Figure 1: Micro Environment

(Source: Hammel et al. p. 35)
According to the macro environment, various factors are there like political, economic, social,
technology, environmental and legal, which affects Coca-Cola in its marketing.

POLITICAL Political factor creates change in regulations like

providing nutritional info of product on packaging,
which fluctuate exchange rates that could give an
outcome in a loss during overseas trading and material
sourcing (Anderson, 2012, p. 134).

ECONOMICAL In the recession of 2010 in the UK, Coca Cola's retail

sales have huge positive influence. The combined sales

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of three different Coke brands reached to 1 billion Euro

and this incident happened the first time.

SOCIAL Social factors increase interest according to the

consumers in case of healthy life lifestyle as well as
basic knowledge of nutritional info related to sugar or fat
content.

TECHNOLOGICAL According to (Kotler and Pfoertsch, 2010, p. 80),

Technology is the fastest changing factor that creates a
huge impact on marketing. Technology introduces
updating of products according to the customer’s needs
because the old technology becomes outdated.

ENVIRONMENTAL Environmental factor creates a challenge to the usage of

environmentally friendly and sustainable products in
case of packaging. Cans and bottles of Coca-Cola
always describe the recyclable process and the proper
process to dispose of the cans and bottles.

LEGAL Legal factors may affect positively as well as negatively.

Changes in income status and corporation tax change the
financial position of Coca-Cola. The increase in various
taxes could affect on coca Cola negatively. As per the
US tax system, the changes in corporation tax earned on
foreign earnings can impact the financial results of
Coca-Cola.

P2: Explaining the way of roles and responsibilities of marketing to relate with wider
organizational context:
Marketing has different roles and responsibilities in case of a wider organizational context of
Coca Cola Company. The first role and responsibility of marketing are gathering information of

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market and analysis of that information (Hammel et al. 2015, p.580). In the context of marketing
information, marketing helps to identify the demand of customers and their likings related to the
advertisements and many others. Marketing helps to achieve the target as well as the objectives
of the company by creating different relevant marketing plans. In the case of designing and
developing a product, marketing plays a significant role. Thus, Coca-Cola has made attractive
cans and bottles to attract their customers. Marketing helps to improve the packaging of the
product so that the customers can handle, and use the package very easily. Moreover, Marketing
creates attractive advertisements to increase the brand value of the product (Gouldson and
Murphy, 2013, p. 125). Brand value provides special identity to Coca-Cola Company and for this
reason, most of the people in the world know about Coca-Cola.
Coca-Cola has various functional units like finance, production, customer service, research and
development and many others which have significance relationships with marketing. In the case
of finance, it creates a report of profit, loss and other costs. With the help of finance department,
marketing can set the objectives and target of the company for next year. Marketing creates a
huge impact on the production of the company. Marketing set a target for the company and
according to that target the production, unit determines and increase their production capability
(Döckel and Ligthelm, 2015, p.58). Marketing is related to customer service because, on the
basis of customer service, marketing unit understands the views of the customers related to the
product. Research and development unit provides various research reports to the marketing unit
so that the marketing department can set strategies for product development and for competing in
the market.
The functional units of Coca-Cola like finance, production, research and development and
customer service has importantly interrelated with the marketing function. On the basis of the
reports and information provided by other functional units, marketing unit set different strategies
to develop the product. Moreover, marketing department set the target for the production unit. In
addition to this, customer service has the small impact on marketing department because the
function of those two units is different.

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LO 2: Comparing the ways of use of marketing mix elements (7Ps) to attain business
objectives:

P3: Comparing the ways to apply marketing mix towards the planning process of
marketing to attain business objectives:
Coca-Cola is a beverage company which sells soft drinks to most of the countries of the world.
The company is based in the UK and their customers are all generations of people, whose age is
above 12. Coca-Cola uses 7 P's of marketing in the context of the marketing mix to achieve their
target and objectives. The 7 P's of marketing mix used by Coca-Cola Company are a product,
promotion, price, place, people, process and physical evidence (Kotler et al. 2015, p. 90). In the
case of product, Coca-Cola has the knowledge to assess the customer's mood and market. The
company can understand the demand of the customers and according to the customer's demand
they have varieties of products like Diet coke, Coke zero, Sprite, Fanta and many others. Coca-
Cola also sells a fruit drink named an Oasis, an isotonic sports drink named Powerade, packaged
water named as Schweppes Abbey Well water. Coca-Cola set the price of their products
according to the other competitors as well as a geographic segment. The fluctuation of the price
depends upon the competitors because the competitors sell those similar products at the same
price like Coca-Cola offers.
The company also evaluates the spending amount of people for a specific product and thus, sets
the price of a specific product. Coca-Cola Company supplies their various products to all over
the world. The company has very much effective distribution network so that they can easily
reach to any country in the world. Moreover, the company sells their products in rural and
remote areas of different countries. In the case of promotion, Coca-cola spends a huge amount of
money in advertising and promotion (Armstrong et al. 2014, p.70). Coca-Cola creates some
innovative advertisements with a catchy line like “open happiness",” taste the feeling" to attract
their customers. The company spends a huge amount of money on television advertising as well
as for sponsorship purpose. Moreover, the company gives advertisements in international and
local magazines newspapers as well as different social media to attract the regional customers.
Coca cola also organizes some promotional events in colleges, shopping malls and many other
places. The people relates to the targeted customers of the coca Cola company. The company
targets to sell their products to those people, who are above 12 years, age Coca-Cola UK, 2016).
The company has also reached to the rural people, who live in remote and rural areas. The

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company understands the demand of huge percentage of people, who live in rural and remote
areas. (Refer to appendix 1)
The process of marketing mix includes the manufacturing process and the distribution channel of
Coca-Cola. The company has so many manufacturing industries in all over the world. The
process of making the drink is very unique and it passes several quality check process. Coca-
Cola also manufactures and distributes drinks top the other brand owners like Capri-Sun,
Monster energy drinks and many others. The distribution channel of Coca-Cola Company is very
strong and it reaches every corner of the world. The company supplies their various products
immediately according to the customer's demand and they concern on the availability of products
in every retail shop (Chikweche and Fletcher, 2012, p.511). The physical evidence of Coca Cola
is very attractive and can easily identify by observing it looks. However, the logo of Coca Cola is
enough to identify the brand of Coca-Cola.

Figure 2: 7 P’s of Marketing Mix

(Source: Kotler, 2012, p.52)
The first competitor of Coca-Cola in beverage market is Pepsi, which sells the similar quality of
products. The comparison of 7 P's of marketing mix between Coca-Cola and Pepsi are given
below

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Different marketing mix Coca-Cola Pepsi

Product Coke, Thums up, diet coke, Pepsi, Mirinda, 7 up,

Fanta, Sprite, Limca, Maaza, Mountain dew, Tropicana and
Kinley and many others many others

Price Follows cost based pricing. Follows competition based

Similar to other competitors pricing. The prices of
like Pepsi. different soft drinks are equal
to Coca-Cola products Coca-
Cola. UK, 2016). Pepsi is
very flexible to make an
adjustment with the price.

Place All over the world. Follows Most of the countries in the
Hub and Spoke model of world. Also follows Hub and
distribution in rural areas spoke model to distribute
products in rural areas.

Promotion Coke spends more amount of Pepsi spends more amount of

money in advertising. money in sponsorship and
creating events.

People All the generations of people, Youth people.

whose age is above 12

Process Have manufacturing Have manufacturing

industries all over the world. industries in most of the
Sales and distribution countries. Sales and
channels are handled by the distribution channel focuses
large huge number of bottlers on main restaurants,
and focus on every possible departmental stores.
retail store.

Physical evidence Very attractive packaging to Attractive packaging to attract

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attract all the generation of the young generation of

people. Mainly recognized by people. The logo is different
the logo. from Coca Cola.

LO 3: Development and evaluation of a basic marketing plan: (Refer to PPT)

P4: Production and evaluation of a basic marketing plan for an organization:

4.1.1: Importance and value of marketing plans:
The importance of marketing plan is to clarify the necessary marketing elements of Coca Cola
Company and figures the objectives, directions and activities for the particular business and the
employees (Balmer, 2013, p.42). The marketing plan to Coca-Cola Company is to give focus on
7 p’s of marketing.
4.1.2: Various objectives and marketing strategies:
The objectives of Coca-Cola Company is
● Maximum sale of the products
● Earn more profit
● Increasing brand image
● To become number one beverage company in the world
The objectives of Coca-Cola are to sale maximum number of products to the customers. By
earning more profit, the company can increase the growth of the business. The increasing brand
image will increase the customer's loyalty and it helps Coca-Cola to become the number one
beverage company in the world (Chikweche and Fletcher, 2012, p.507).
The strategies to fulfill these objectives are
● Study the market segments and competitors thoroughly:
● Reach the product in every possible retail store:
● Make stronger the distribution channel
● Make more innovative and attractive advertisements to attract the customers
● Target hotels, restaurants for bulk selling

Study of market segments and competitors helps Coca-Cola Company to identify the key
competitors of the market. Reach the product in every area increases the business volume of the

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company. Stronger distribution channel will reach the product in remote and rural areas.
Innovative and attractive advertisements help the company to compete with competitors as well
as attract the customers. Moreover, it will create a positive impact on customer's mind. Target
various hotels and restaurants for bulk selling that will increase the profit level. (Refer to
appendix 2)
4.1.3: Monitoring marketing plan
In the case of monitoring marketing plan, sales analysis helps to judge the previous year's sales
of the company whereas, market share analysis helps to identify the market share of the company
comparatively to the competitors. Efficiency ratios and the analysis of cost profitability help to
understand the profit and cost level of every aspect.
4.2.1: Segmentation of market and selection of target market
The market must be segmented according to age, gender as well as demographic regions to
penetrate in the market. The selection of target market means to identify the targeted customers
like all generations of people.
4.2.2: Setting goals and objectives
● To identify the targeted customers
● To know the market position
4.2.3: Situational analysis tools and techniques
In a case of market segmentation, a different tool like SWOT analysis and BCG matrix need to
be prepared. Moreover, Porter's five forces model need to produce to identify the barriers.
4.2.4: Creating a marketing strategy and allocation of resources
Giving huge amount of advertisements in local channels, radios helps in developing the
marketing plan. The company will request the shareholders of the company to invest in business
more.
4.2.5: Monitoring and control measures
As a manager, I will supervise all the jobs and give reports and send those reports to the higher
authority so that they can understand the function.

Conclusion:
From this report, the various roles and responsibilities of organizational functions and the
different environmental factors are described. The relationship of roles and responsibilities of
marketing relating to the wider context of the organization are elaborated. The way of using

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marketing mix according to Coca-Cola Company is stated as well as the different marketing mix
used by two different companies like Coca Cola and Pepsi for targeting the customers. The
production and development of basic marketing plan for Coca-Cola Company and its controlling,
measuring, using different tools are elaborated

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Appendices:
Appendix 1:

Figure 1: Comparison with other brand

(Source: Coca-Cola. UK, 2016)
Appendix 2:

Figure 2: Profit Margin of Coca-Cola

(Source: Coca-Cola. UK, 2016)

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