GREAT ZIMBABWE UNIVERSITY

MUNHUMUTAPA SCHOOL OF COMMERCE

DEPARTMENT OF MANAGEMENT STUDIES

NAME : MAORERA NYARADZI

REG NUMBER : M142278

PROGRAMM : MASTER IN BUSINESS ADMINISTRATION

COURSE TITLE : STRATEGIC MARKETING MANAGEMENT

LECTURER : DR ZIMUTO
1. It can be noted from the case study that Coca Cola sought growth and profitability through
cost cutting measures. Coke’s Indonesian officials, for instance, relinquished their downtown
office space and moved into a bottling plant. To make drinks more affordable, Coke switched
from refundable glass packaging and introduced cheaper 6.5-oz.bottles. It scaled back ad
campaigns in favor of in store “instant win” promotions. In Poland, Coke bundled free candy
bars with its half-liter bottles—one of several moves that had helped boost firstquarter1999
sales there 17 percent. For the long term, Ivester’s response to his company’s myriad
problems has been remarkably consistent. The purpose of the cost cutting measure was to......

In as much as the company implemented short term goals its CEO Ivester was doing
whatever it took to keep the syrup flowing that is he also had long term strategies in place for
the company. By investing in new capacity around the world, he was making a bet that the
global economy would recover swiftly and in China, where Coke volume grew 20 percent
during 1998, Coke managers were taking the ultimate long-term view, putting together a 100-
year plan at Ivester’s request. The Company CEO believed that where there is a crisis there
are also opportunities and therefore the company did not focus on the threats from new
entrants for instance Pepsi. The company took advantage of the crisis to grow its market
share in and around the world.

In addition to the above, rather than pulling back as the going got rough, Ivester the CEO had
repeatedly doubled his bets by spending lavishly in order to win an ever-bigger slice of the
global market. That meant using the downturn as a chance to buy bottlers, distribution, and
even rival brands cheap. As a CEO he planned ahead as evidenced by his 100year plan
which he introduced to his managers. This simply shows that he was a strategic thinker who
could come up with strategic issues and he knew how to tackle problems faced by the
company.

The company did not focus only on the international market but it had its focus on the local
market for example the company targeted North Carolina by increasing its capital spending
and increasing 25 000 new vending machine in that area, each machine could generate 30 to
50 percent annual return and this has an impact on growth and profitability of the firm since
new employees would be needed. The vending machines were meant to ensure that the brand
name of coca-cola will be known all over America despite the size of the city. The vending
machines will attract customers and increase the client base of the company in North Carolina
leading to increased revenue and profitability in the long run
2. A lesson which can be withdrawn from Ivester’s style of management is strategic thinking.
As part of that strategic effort, Ivester had encouraged more of his troops to think boldly to
take more risk, even encouraging one manger who had a scheme to use a laser to beam
Coke’s trademark off the moon to “go for it.” The CEO maintained tight oversight as seen in
the case study as he trained the employees to focus on details hence showing that he had an
eye for a bright future. Ivester told employees in his gentle Georgia accent. “There’s nothing
about economic change that is going to change people’s thirst.” His management style shows
that he was a very smart thinker. He knew how to fight competition from Pepsi and how to
overtake Pepsi in the game.

To secure its position in the industry and to fight competition the company did not only
implement short term strategies but it also implemented long term strategies. Ivestor as a
CEO he planned ahead as evidenced by his 100year plan which he introduced to his
managers. This simply shows that he was a strategic thinker who could come up with
strategic issues and he knew how to tackle problems faced by the company. The company
CEO believed that where there is a crisis there are also opportunities and therefore the
company did not focus on the threats from new entrants for instance Pepsi. The company
took advantage of the crisis to grow its market share in and around the world.

Strategic planning is one of the lessons which can be drawn from Ivestor’s style of
management. Planning is essentially a process directed toward making today’s decisions with
tomorrow in mind and a means of preparing for future decisions so that they may be made
rapidly, economically, and with as little disruption to the business as possible. Ivester began
the delicate task of shifting Coke’s corporate culture, which had developed a reputation in
some quarters for arrogance and stodginess. To speed the decision-making process Ivester cut
several layers out of Coke’s organizational Hierarchy Under Goizueta he began scrapping
Coke’s grueling December planning marathons with managers in favor of real-time
budgeting, giving his field generals more freedom to respond to any opportunities that might
arise. And, he tried to soften Coke’s old “tough-love” style of management. According to
Ivester, “Many employees today did not grow up in traditional households.” You’ve got to
transition to a modern style of motivating people. “We’re dealing with human thirst,”

In conclusion, Investor’s style of management was to a greater extend meaningful although

he continued facing problems from new market entrants
4. Using case study examples, demonstrate the rationale for strategic marketing
management

According to Subashu CJ (1997:30) the battle for market share is intensifying in many
industries as a result of declining growth rates. Faced with insignificant growth, companies
have no choice but to grasp for new weapons to increase their share, and strategic marketing
can provide extra leverage in share battles.

Second, deregulation in many industries is mandating a move to strategic marketing. Thus

emphasis on strategic marketing is no longer a matter of choice if these companies are to
perform well. With deregulation, it is an entirely different story (Drucker P. 1974). The
prospect of Sears, Roebuck and Merrill Lynch as direct competitors would have been
laughable as recently as ten years ago.

Third, many packaged-goods companies are acquiring companies in hitherto non marketing-
oriented industries and are attempting to gain market share through strategic marketing. For
example, apparel makers, with few exceptions, have traditionally depended on production
excellence to gain competitive advantage. But when marketing-oriented consumer-products
companies purchased apparel companies, the picture changed. General Mills, through
marketing strategy, turned Izod (the alligator shirt) into a highly successful business. On
acquiring Columbia Pictures in 1982,the Coca-Cola Company successfully tested the
proposition that it could sell movies like soft drinks. By using Coke’s marketing prowess and
a host of innovative financing packages, Columbia emerged as a dominant force in the
motion picture business. It almost doubled its market share between 1982 and 1987 and
increased profits by 20 percent annually.

Fourth, shifts in the channel structure of many industries have posed new problems.
Traditional channels of distribution have become scrambled, and manufacturers find
themselves using a mixture of wholesalers, retailers, chains, buying groups, and even captive
outlets. In some cases, distributors and manufacturers’ representatives are playing more
important roles. In others, buying groups, chains, and cooperatives are becoming more
significant because these groups bring greatly increased sophistication to the buying process,
especially as the computer gives them access to more and better information, buying clout is
being concentrated in fewer hands.
Fifth, competition from overseas companies operating both in the United States and abroad is
intensifying. More and more countries around the world are developing the capacity to
compete aggressively in world markets. Business people in both developed and developing
countries are aware of world market trends and are confident that they can reach new
markets. Eager to improve their economic conditions and their living standards, they are
willing to learn, adapt, and innovate. Thirty years ago, most American companies were
confident that they could beat foreign competitors with relative ease. After all, they reasoned,
we have the best technology, the best management skills, and the famous American “can do’’
attitude. Today competition from Europe, Japan, and elsewhere is seemingly insurmountable.
To cope with worldwide competition, renewed emphasis on marketing strategy achieves
significance.

Sixth, the fragmentation of markets—the result of higher per capita incomes and more
sophisticated consumers—is another factor driving the increased importance of strategic
marketing. In the United States, for example, the number of segments in the automobile
market increased by one-third, from 18 to 24, during the period from 1988 to 1995 (i.e., two
subcompact, two compact, two intermediate, four full size, two luxury, three truck, two van,
and one station wagon in 1978 to two mini compact, two subcompact, two compact, two
midsized, two intermediate, two luxury, six truck, five van, and one station wagon in 1985).
Many of these segments remain unserved until a company introduces a product offering that
is tailored to that niche. The competitive realities of fragmented markets require strategic-
marketing capability to identify untapped market segments and to develop and introduce
products to meet their requirements.

Seventh, in the wake of easy availability of base technologies and shortening product life
cycles, getting to market quickly is a prerequisite for success in the marketplace. Early
entrants not only can command premium prices, but they also achieve volume break points in
purchasing, manufacturing, and marketing earlier than followers and, thus, gain market share.
For example, in the European market, the first company to market car radios can typically
charge 20 percent more for the product than a competitor who enters the market a year later.
In planning an early entry into the marketplace, strategic marketing achieves significance.

Eighth, the days are gone when companies could win market share by achieving cost and
quality advantages in existing, well-defined markets. As we enter the next century,
companies will need to conceive and create new and largely uncontested competitive market
space. Corporate imagination and expeditionary policies are the keys that unlock new
markets. Corporate imagination involves going beyond served markets; that is, thinking about
needs and functionalities instead of conventional customer-product grids; overturning
traditional price/performance assumptions; and leading customers rather than following them.
Creating new markets is a risky business; however, through expeditionary policies,
companies can minimize the risk not by being fast followers but by the process of low-cost,
fast-paced market incursions designed to reach the target market. To successfully develop
corporate imagination and expeditionary policies, companies need strategic marketing.
Consider this lesson
EXPLAIN THE FOLLWOING TERMJS WITH CASE STUDY EXAMPLES

1. COMPETITION

According to Subashu CJ (:73) in a free market economy, each company tries to outperform
its competitors. A competitor is a rival. A company must know, therefore, how it stands up
against each competitor with regard to “arms and ammunition”—skill in maneuvering
opportunities, preparedness in reacting to threats, and so on. To obtain adequate knowledge
about the competition, a company needs an excellent intelligence network. At PepsiCo,
beating the competition is the surest path to success. In its soft drink operation, Pepsi takes on
Coke directly, asking consumers to compare the taste of the two colas. A useful way to define
competition is to differentiate between natural and strategic competition. Natural competition
refers to the survival of the fittest in a given environment. It is an evolutionary process that
weeds out the weaker of two rivals. Applied to the business world, it means that no two firms
doing business across the board the same way in the same market can coexist forever. To
survive, each firm must have something uniquely superior to the other. Strategic competition
is the studied deployment of resources based on a high degree of insight into the systematic
cause and effect in the business ecological system. It tries to leave nothing to chance.
Strategic competition is a new phenomenon in the business world that may well have the
same impact upon business productivity that the industrial revolution had upon individual
productivity.

NEEDS

Firms compete to satisfy customer needs, which may be classified as existing, latent, or
incipient. Satisfaction of customer need is the ultimate test of a business unit’s success. Thus,
an effective marketing strategy should aim at serving customer needs and wants better than
competitors.

PRODUCT CONCEPT

This orientation holds that consumers will favor those products that offer the most quality,
performance, or innovative features.  Managers focusing on this concept concentrate on
making superior products and improving them over time. They assume that buyers admire
well-made products and can appraise quality and performance.  However, these managers are
sometimes caught up in a love affair with their product and do not realize what the market
needs.  Management might commit the “better-mousetrap” fallacy, believing that a better
mousetrap will lead people to beat a path to its door. Apple Inc. is a prime example of this
concept in action. Its target audience always eagerly anticipates the company’s new releases.
Even though there are off-brand products that perform many of the same functions for a
lower price, many folks will not compromise just to save money.

SELLING CONCEPT

It holds that consumers and businesses, if left alone, will ordinarily not buy enough of the
selling company’s products.  The organization must, therefore, undertake an aggressive
selling and promotion effort.  This concept assumes that consumers typically sho9w buyi8ng
inertia or resistance and must be coaxed into buying.  It also assumes that the company has a
whole battery of effective selling and promotional tools to stimulate more buying. Most firms
practice the selling concept when they have overcapacity.  Their aim is to sell what they
make rather than make what the market wants. An example is soda pop. Ever wonder why
you continue to see ads for Coca Cola despite the prevalence of the brand? Everyone knows
what Coke has to offer, but it’s widely known that soda lacks nutrients and is bad for your
health. Coca Cola knows this, and that’s why they spend astonishing amounts of money
pushing their product. 

SEGMENTATION

Even if the product sold is a commodity, segmentation of the market is possible.

Segmentation is often the key to developing a sustainable competitive advantage based on
differentiation, low cost, or a focus strategy. Kenichi Ohmae, the longtime head of McKinsey
in Japan, tells of a forklift firm that obtained an SCA in part by focusing on the retailing and
construction industries. The firm left the more demanding segments in the heavy-duty harbor
and logging applications to its competitors.^ The focused product line developed a 20 percent
cost advantage and still served the needs of more than 80 percent of the forklift truck market.
The lower-priced, value-engineered product line soon swept to a dominant position. In a
strategic context, segmentation means the identification of customer groups that respond
differently than do other customer groups to competitive

MARKETING MIX

According to Philip Kotler “Marketing Mix is the set of controllable variables that the firm
can use to influence the buyer’s response”. The controllable variables in this context refer to
the 4 ‘P’s that is the product, price, place (distribution) and promotion. Each firm strives to
build up such a composition of 4‘P’s, which can create highest level of consumer satisfaction
and at the same time meet its organisational objectives. Thus, this mix is assembled keeping
in mind the needs of target customers, and it varies from one organisation to another
depending upon its available resources and marketing objectives.

DEMAND

Demand is an economic principle referring to a consumer's desire to purchase goods and

services and willingness to pay a price for a specific goods and services. The demand for a
company’s product depends on the needs, wants, and luxuries of your customer. Ivester the
CEO of Coca-Cola said that the customer’s thirsty will not change this shows the desire the
consumers have to drink beverages.

VALUE

Value is the monetary worth of for example the 87 million the value which coke bought from
a british company. It represents one of the key concepts in strategic management. Over time,
top management values come to characterize the culture of the entire organization. Corporate
culture in turn affects the entire perspective of the organization. It influences its product and
service quality, advertising content, pricing policies, treatment of employees, and
relationships with customers, suppliers,
and the community.

TARGET MARKET

Target market is a group of people with some shared demographics that a company has
identified as potential customers for its products for example Coca Cola diet coke is
targeting the consumer whole are older and between the age of twenty five to thirty nine.
Identifying a target market is important for any company in the development and
implementation of a successful marketing plan and it eases the marketing decision process as
marketers get to know for instance the target market of Facebook has evolved along with the
company. The founders targeted college students of United States in its initial years.
Facebook has now widened its target market and has positioned itself as a social media
platform used mostly by middle aged mobile using adults.

REFERENCES

Blythe, J. and Megicks, P. (2010), “Introduction to marketing planning”, in Blythe, J. and

Megicks, Marketing Planning: Strategy, Environment and Context, Pearson, Edinburgh, p. 1-
22.

Cohen, W.A. 2001. The Marketing Plan. New York: Wiley.

Drucker, P.F. 1974. Management, Tasks, Responsibilities, and Practices. New York: Harper
and Row.

Lehmann, D.R. and R.S. Winer. 1994. Analysis for Marketing Planning, Third Edition. Burr
Ridge, IL: Richard D. Irwin, Inc.
Naisbitt, J. 1982. Megatrends: Ten Directions Transforming Our Lives. New York: Warner
Books.

Porter, M.E. 1980. Competitive Strategy: Techniques for Analyzing Industries and

Competitors. New York: Free Press.

Cannon, T. (1978), “New product development”, European Journal of Marketing, Vol. 12

No.3, p. 217-248

Gilthens, G. (2011), A guide to the three types of strategy and business model scope, [Online]
Available from: http://leadingstrategicinitiatives.com/2011/07/10/a-guide-to-the-three-types-
of-strategy-and-business-model-scope/ [Accessed 24/11/2021].

Henandez, H. (2013), Simple Approach to a high level 3C’s Analysis, [Online]

Availablefrom: http://ochodigital.com/blog/simple-approach-high-level-3cs-analysis/ [Access
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