Professional Documents
Culture Documents
TABLE OF CONTENT
Page
I. Executive summary 2
II. Introduction 2
1. Background 2
2. Missions 3
3. Vision 3
4. Values 3
III. Marketing Environment Analysis 4
1. Macro Environment 4
3. Internal
IV. Marketing Analysis
1. Positioning
2. Marketing Mix
3. SWOT
4. SWOT Analysis
V. Key issues
A. Objectives
B. Marketing Strategy
C. Action Plan
VII. Controls
VIII. References
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I. Executive Summary:
Coca Cola Company is the world’s leading soft drink maker, operates in more than
200 countries around the world and owns or licenses more than 500 brands of
nonalcoholic beverages.
This paper is a marketing plan recommended for Coca Cola Company. Firstly, we are
going to analyze the Coca Cola Company (PESTLE, Marketing Mix and SWOT). Then,
there are some key issues regarding Coca Cola Company concluded after the
analysis. And finally, we have gave solutions for Coca Cola to solve the issues.
II. Introduction:
1. Background:
Coca-Cola (also Coke) history began in 1886 when the curiosity of an Atlanta
pharmacist, Dr. John S. Pemberton, led him to create a distinctive tasting soft drink
that could be sold at soda fountains. He created a flavored syrup, took it to his
neighborhood pharmacy, where it was mixed with carbonated water and deemed
“excellent” by those who sampled it. Dr. Pemberton’s partner and bookkeeper, Frank
The first time appear of Coca Cola in Vietnam is in 1960. After that, Coca-cola
Indochina Pte Company was established officially in Vietnam on August 1995. Since
then, Coca-cola has some locations in Vietnam, which were united as one Beverage
Company called Coca-cola Vietnam with the head office located in Thu Duc District,
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2. Missions:
3. Vision: To achieve above missions, Coca Cola Company has developed a set of goals,
responsibilities
o People: Being a great place to work, where people are inspired to be the best
they can be
loyalty
4. Values: Coca Cola shared values that they are guided by are:
o Leadership
o Passion
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o Integrity
o Accountability
o Collaboration
o Innovation
o Quality
1. Macro environment:
a. Political:
Government has the power to set fines for the companies not meeting their standard
government regulations, social welfare policies, political risks might affect the
company as well as their entry in foreign countries. The political conditions, even
the civil conflict can impact to the markets and other governmental changes that
affect their ability to penetrate the developing and emerging markets that involves
the political and economic conditions. However, Coca Cola continuously monitoring
Tax policy
Tax is the issue which any business operating in Vietnam is under the impact of laws
and regulations. However, the tax service has recently questioned for many large
foreign companies in Vietnam. Tax Agency has written requests for consideration
companies report losses for the purpose of increasing costs to evade taxes or not.
Among them, Coca Cola Company reported losses in continuous operation for 20
years in Vietnam.
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The biggest difficulty is prompted many experts to be the multinational corporations
often use the " guise " of proprietary material or technology , that agency is difficult
to determine the actual cost of inputs Vietnam businesses spend. Coca Cola,
according to the tax agency costs flavorings imported from the parent company
accounts for about 70-85 % of the cost of plant in Vietnam. The data cannot be
determined by the agency because of not knowing whether the proportion of flavor
additives from Coca Cola parent company in Vietnam is, compared to other markets
to put conclusions. However, this is the major reason Coca cola Vietnam proves for
their losses to dodge the government policy of tax. It also makes a bad reputation for
Government regulations
Coca-Cola Company and other soft drink manufacturers are subject to antitrust laws
distribute and sell a soft drink product if its product is in substantial and effective
competition with others of the same general class in the market. It is the general
regulation in business in every country. However, there are some regulations strictly
limited and prevent the expanding. For example, the Coca cola has experienced
public policy which challenges them about the sale of soft drinks in elementary,
middle and high schools. At January 1, 2006, a number of states had regulations
restricting the sale of soft drinks and other foods in schools. Many of these restrictions
have existed for several years in connection with subsidized meal programs in schools.i
This regulation cares about the youth’s health as well as nutrition. This led to obesity
among students and it affected directly to the business of Coke Company in that
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period. Moreover, the restrictive legislation, if it enacted for a long time widely, it
Coca cola offer high-quality brands and reputation in many countries on over the
world. Company significantly understand and believe that everyone should have
benefit. The business should bring benefit and refreshment to the people, which is
central to the way The Coca cola operate in communities around the world. The
company plays the role as a good neighbor and responsible citizen by helping
people. In Vietnam, the company set up many regional and local foundations,
Overall, Vietnam has a steady political condition. All above pose opportunities for
Coca cola Vietnam to develop the reputation with social programs. They do these
well to gain the people support. However, political situation or state regulation is
also the important point that Coca cola Vietnam must notice. It can prevent their
The opportunities for Coca Cola are Social welfare policies to improve their image.
The threats are Tax policy, government regulations to disclose negative information
and labels.
b. Economic:
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The economy in Vietnam is growing rapidly. It is advantages for the company's
president of Coca-Cola, Muhtar Kent said that this was still an attractive market as
In Vietnam, the amount of Coca cola users is competitive with many other beverage
companies. Internal company operating in this industry such as Tan Hiep Phat is
important role in sharing the marketing with Coca cola Vietnam. There are both
The predicted GDP of Vietnam in 2014 will increase to ~ 6%. Growth of economy
will directly effect on the purchasing power of consumers. This growth will rise
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Coca-cola inflation adjusted price from 1997 to end of May – 2013
Vietnam has a high inflation rate per year. It is also control by the government but
its level still impact to the company’s operation, and particularly affects to the price
of Coca Cola’s products. In addition, the inflation rate of Vietnam economy also has
been fluctuating for years, which also affect directly to Coca Cola consumption in an
unexpected way.
The threats: Inflation rate require to increase the price of products. So the
c. Social, demographic:
sector for many customers desiring to bottled water and diet colas like Coca-Cola
Light or Zero, instead of beer or other beverages. Most of the population is within
the youth. Many customers are more concerned about their health in a long term. In
Vietnam, young people more and more prefer to use soft drinks nowadays.
Besides the young population factor, income distribution also is the impact on
business of Coca Cola. The ability of paying for beverage depends on income. People
who have a high income are willing to pay for beverage more usual. Income
distribution is not equal among all people. However, in urban and industrial areas,
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where has economic development capita income is higher than other places. In
Vietnam, HCMC, Hanoi and other big cities have more amounts of people using Coca
cola.
Additionally, another factor is the buying habits. Retailers can use consumer buying
habits to facilitate their own product placement and retail strategy. Buying habits
can be understood with the mean of the buying habits of different people. Coke’s
price is not expensive which adapt to most of people in every class. However, people
who have ability to pay have more chance to choose Coke for their beverage than
someone who can’t afford and do not want to spend their money for entertainment
beverage. Otherwise, the youth trend to drink Coke more than the older or the kids.
The opportunities:
beverage.
water consumption
The threats: Demography, income distribution (the less crowded the places
d. Technological:
Technological techniques are valued. This creates opportunities for new products
and advanced products. High and modern technology will increase the company’s
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Researches are necessary for the understanding customers and create the new
products. Coca Cola company always observe and update information from their
investigate the habits or income, ability to pay, including taste and health needs.
From the study of mass, Coca Cola launched products and services best suited to the
continually grow the business, The Company need to be increasingly efficient in use
will enable Coca cola’s system to meet the new market demands.
promotional programs. The new technology advances of television and internet that
use incomparable effects for advertising through the use of media. Those advances
make the products seem attractive. This supports the selling promotion of the
products. Coca-Cola in media tends to use this technology so, to sell effectively its
products.
The threats: Internet have a bad sight also (any scandals can spread widely
and quickly)
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Technology is good and bad too. It can contribute to the improvement but getting
e. Environmental:
The Coca cola work for low carbon products, zero waste business, and inspire and
lead change for a more sustainable future. Coca Cola worked with the Carbon Trust
responsible. Since 1994, the Company has managed to reduce the weight of our
plastic bottles by 38.5%. At the same time, Coke’s glass bottles are already 37%
recycled and cans are 50% recycled aluminum. The Company also introduced Plant
Bottle packaging in 2011, which is 100% recyclable and made partly from
sustainable plant materials, reducing the reliance on fossil fuels for plastics.
beverages, which help people to slake. It’s most suitable for summer when the
f. Legal:
Competitive laws are the important laws for business and their same sector
or limit of competition… However, it more perfect day by day. Government has built
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Environmental protection laws are a mandatory rule for manufacturing
enterprises, especially the production of food and drinking water. The fuel,
chemicals, gases released from the manufacturing process can negatively pollute the
environment of land, water, air ... The law stipulates the allowed level of the toxic
great concern in these issues nowadays. There are many company violated this law
of environment protection. Aware of this issue, Coca cola usually organize program
people.
Health and safety: The Coca cola are committed to conducting business in ways
that provide all personnel with a safe and healthy work environment. Coke’s Safety
Management System Standards and supporting requirements are for worker safety
managing occupational safety and health and loss prevention. The system globally
operates under the same standards and requirements. The Company also has a
statement of occupational safety and establishes the Safety Board of the Company as
a body authorized to solve and cares about health and working conditions of
employees.
Product safety is the most concerned issues of consumers. The Coca cola always
cares about the safety and quality in every parts from products to services. The core
criteria of Coke are to ensure safety and quality through strong governance and
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In Vietnam, the problem of product safety is extremely important. There are so
much food poisoning in current time that make people worry and not believe in
undefined drinks and foods. Coca-Cola Vietnam customers accused of being "prime"
the bottle mold Minute Maid Teppy (fresh orange juice) type of 240ml, affecting the
mold floating on the water bottle containing anything, whether hazardous or not,
which shows that the two bottles of orange juice Minute Maid Teppy client was
shipment. This document is for that reason "error" in the bottle is due to the can "no
All above is to link to the success of Coca Cola so that they surely keeps the promise
The Coca cola maintain and improve their reputation. However, it also requires the
continuous efforts to adapt these laws to bring the best products and services,
Finance
To enter the soft drink industry, it requires high fixed costs for production,
warehouses, trucks, labor and marketing activities. As there are limited bottlers,
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new entrants may need to build their bottling plants. It requires large amount of
capital. This makes it extremely difficult for an entrant to compete with the
Coke has a long history of heavy advertising. This makes them dominate with their
strong brand name and loyal customers all over the world. This makes it virtually
impossible for a new entrant to match this scale of share in this market.
Fear of Retaliation
players are present such as Coke and Pepsi in this industry. So these players will not
allow any new entrants to easily enter the market. They will give a tough time to
new entrants which could result into price wars, new product line, etc in order to
This industry is enriched with enormous statistics of substitutes such as: water, tea,
beer, juices, coffee, etc presented to the end-consumers. As consumers concern more
about health, bottled water and sport drinks are increasingly popular. This trend is
epitomized in the beverage consumption pattern of the ageing baby boomers. But all
the suppliers of these substitutes need massive advertising, brand equity, brand
loyalty and making sure that their brands are effortlessly accessible to the
consumers. Most of the substitutes cannot counterpart the existing players' offers or
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Aggressiveness of substitute products in promotion
Soft drink industry companies spend huge amount of money on advertisement and
marketing to differentiate their products from others and also create brand equity,
Switching cost
Switching cost of the substitute products is very low so consumers can easily shift
Perceived price/ value in this industry is very low because all products are
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c. Bargaining power of Suppliers – Low
The Coca Cola Company is the largest beverage producer in the world and exerts
significant power over its suppliers to receive the lowest price available from them.
Most of the raw materials desirable to manufacture soft drink are basic merchandise
such as flavor, color, caffeine, sugar, and packaging etc. The suppliers of these
commodities have no bargaining power over the pricing due to which the suppliers
Raw materials for soft drink are basic commodities which are easily available to
every producer and have low cost which makes no difference for any supplier.
Switching cost
All the raw material ingredients are basic merchandize and easily accessible to
manufacturer. Switching cost to the suppliers is very low; manufactures can easily
Availability of substitutes
Soft drink products have standard raw material ingredients which could not have
the soft drinks need huge manufacturing plants, bottling network, strong
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distribution network and best shelf space. Suppliers could not afford such kink of
well-established network.
Soft drink industry is very important to the suppliers because buyers purchase
larger amount of raw material. This encourages suppliers to remain in good contact
with buyers.
Product of the suppliers is very important input for the manufacturers in this
The buyers of Coca-Cola and other soft drinks are mainly large grocers, convenience
stores, supermarkets, and restaurants. The soft drink companies distribute the
beverages to them for resale to the consumer. The bargaining power of the buyers is
strong. Large grocers, convenience stores, supermarkets and fast food restaurants
buy large volumes of the soft drinks, which allow them to bargain a lower price.
Besides, with end-user, they have many choices because of diversity in beverage’s
Therefore, buyers can have a larger bargaining power on the soft drink.
The industry is almost dominated by the Coke and Pepsi. This industry is well
known as a doupoly with Coke and Pepsi as the companies competing. These both
players have the majority of the market share and rest of the players have very low
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market share. Otherwise; competition is comparatively low to result any turmoil of
industry structure.
The competitive pressure from rival sellers is the greatest challenging faced by Coca-
Cola. PepsiCo is the main competitor for Coca-Cola and these two brands have been
in a power struggle for more than a century. PepsiCo is fiercely competing with Coca
Cola over market share. Coke and Pepsi primarily are competing on advertising and
differentiation rather than on pricing. This resulted in higher profits and disallowed
strategies. Moreover, there are some rivals of Coca Cola in Vietnam market, such as
Wonder Farm, Tribeco, Tâ n Hiệp Phá t,… Although Coke goes behind in the beverage
Composition of competitors
Except the Coke and Pepsi, other competitors are of unequal size especially in local
markets. Coke and Pepsi both players have the majority of the market share and rest
This industry needs huge manufacturing plants and contracts with bottling network
companies. These contracts make sure that bottler's must have standard
Degree of differentiation
Marketing and product differentiation have become more significant. Coke and Pepsi
mainly are competing on advertising and differentiation rather than on pricing. Coke
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has diverse advertisement campaigns according to conditions. Coca-cola is
recognized as the bet-know brand name in the globe. More prominetly, its
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Strategic Stake
Coke's core operation is the manufacturing and distribution both for itself and
strategic stake the main brands of the Coke has been around for a lot of years
3. Internal:
Coca Cola has strong brand recognition across the globe. The company has a leading
brand value and strong brand porfolio. According to Business Insider, approximately
94% of the world population aware of the red and white logo of Coca Cola, and “Coca
Cola” is the 2nd understandable word in English. There are nearly 10,450 Coca-Cola
products are consumed in the world in each second. Interbrand, a branding consultancy,
ranks Coca Cola the top leading brands in their best global brands ranking in 2009 and
Besides, Coca Cola owns a large porfolio of product brands: more than 500 brands, with a
profolio of more than 3,500 beverages; product lines include diet and regular sparkling
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beverages, 100% fruit juices, fruit drinks, waters, sports and energy drinks, teas and
coffees, and milk. It owns and markets four of the world’s top five soft drink brands:
Cocacol, Diet Coke, Sprite, and Fanta. The fact show that Coca Cola now significant
The best global brand in the world is strength of Coca Cola, it helps company
b. Resources:
Tangible
located in Ho Chi Minh city, Hanoi, and Da Nang. In 2011, this three factories
were merged under centralize management structure, the factory in Ho Chi Minh
city plays the key roles, and the two others became subsidiaries of the Coca Cola
With three direct manufacturers in Vietnam, Coca Cola makes sure about their
number of products provided, saves both time and money instead of importing
- Materials
+ Raw materials: carbonated water, high fructose corn syrup, caramel color,
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- Distribution chanel: Coca Cola uses parallel distribution system, include 1 level
+ 2 levels chanel: Coca Cola uses sole distributors, wholesalers and retailers to
expand their products coverage. In 2009, Coca Cola has 56 sole distributors and
Cola
Intangible
- Technological resources: Coca Cola owns numerous patents, copyrights and trade
generally relates to the products and the processes for production; the packages;
the design and operation of various processes and equipment used in business; and
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- Intellectual property: Coca Cola own numerous trademarks that are very
important. Trademarks are valid as long as they are in use and their registrations
are properly maintained. Besides, Coca Cola is a very powerful brand with strong
identity and huge value (according to the Annual report 2013 of Interbrand
consultant company)
In 2012, Coca Cola gained US$48 billion in revenue equal to the 70 th largest economy in
the world. When Coca Cola penetrated in Vietnam market, they invested US$163 million
approximate US$38,500 million. In 2012, Coca Cola announced a new investments worth
US$300 million in Vietnamin the next three years, and the total investment during the
period from 2010 to 2015 up to US$500 million. This new investments will be used to
build new infrastructures, branding, create more new jobs, and implement sustainable
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Strong finance background is an advantage helps Coca Cola to invest and
1. Positioning:
Coca Cola's brand positioning to consumers as carbonated soft drink No. 1 in the
world - a No.1 trademark product of world. Currently, Coca-Cola still place at the
third position in the list of top brands with a value of U.S. $79.2 billion in 2013.
Coca Cola is a global brand and 98% people in the world knew Coca Cola.
The table below shows the brand’s value of top 10 leading brand in the world
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As a beverage product makes people awake and strong to back, bring amazing
The promise of Coca-Cola: "Bring benefits and enjoyable for all those who are
served by us", the company strives to make "fresh new "market, enriching the
its activities and the first step on the path of different development the
benevolent efforts of the company's focus on education and build dreams for
youth.
Slogan: "All our customers in the world are people who deserve to enjoy the best
quality beverage".
Coca Cola lead far away Pepsi in the beverage market in the world, but the
various sectors of the Pepsi business helped it earn more money. Specifically, the
market share of Coke drinks is 42% compared to 31% of Pepsi, but Coke's annual
revenue reached only 35.2 billion compared with 57.8 billion figure of Pepsi.
Each year, Coke spent $ 2 billion on advertising, while Pepsi only $ 1.1 billion loss
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In the context of social networks becoming more powerful today, Coca-Cola and
Pepsi both use social network to serve for branding. It looks like Coke leads on
the social network. Coke has 139 600 employees, compared with 294,000 staff
working for Pepsi. However, on Twitter, Coke has 391 248 followers, compared
with some 142 766 people watched Pepsi. On Facebook, Coke has over 80 million
2. Marketing Mix:
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a. Products:
Coca-Cola is the most popular and biggest-selling soft drink in history, as well as
Coca-Cola might owe its origins to the United States, but its popularity has made
it truly universal. Today, you can find Coca-Cola in virtually every part of the
world.
such as:
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o Coca-Cola Classic
o Diet Coke: also known as Coca-Cola light, is a sugar- and calorie-free soft
drink with a deliciously crisp taste that gives you a light boost in your busy
day. Today, Diet Coke/Coca-Cola light is one of the largest and most
o Coca-Cola Zero: was created with young adults in mind and offers great Coke
o Fanta: with Orange, Strawberry and Fruit taste. Fanta is the second oldest
brand of The Coca-Cola Company and our second largest brand outside the
US. Fanta Orange is the leading flavor but almost every fruit grown is
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available as a Fanta flavor somewhere. Consumed more than 130 million
times every day around the world, consumers love Fanta for its great, fruity
taste.
o Sprite: Sprite is the world's leading lemon-lime flavored soft drink. Sprite is
sold in more than 190 countries and ranks as the No. 3 soft drink worldwide,
with a strong appeal to young people. Millions of people enjoy Sprite because
of its crisp, clean taste that really quenches your thirst. But Sprite also has an
honest, straightforward attitude that sets it apart from other soft drinks.
Sprite encourages you to be true to who you are and to obey you.
o Dasani water
o Others
diverse market, so Coca-Cola was oriented its products into the youth segment
(with sophisticated style, youthfulness and enthusiasm). That was the right
direction of Coca-Cola when it was successful and well received by the youth a
b. Packaging:
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- Glass bottle
of “Fanta Fun”, this type of bottle with fancy shape create the
events, such as in Tet Holiday, it uses the image of swallow bird (the symbol of
Spring) in all designs – can, bottles, boxes. Or in some special events like World
Cup, Coca-Cola products use colorful images of soccer players and some
countries’ flag.
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Note: about the materials of all packs:
- Glass bottles are 100% recyclable and contain an average of 30% recycled
materials
- Plastic bottles are made from PET (polyethylene terephthalate) and are
100% recyclable
- All cans are made from 100% recyclable aluminum and contain around
c. Price:
Coca-Cola Company set price for products based on the value received of
than the spending cost of sellers, so this company built the prices depend on
are different in form, size, materials … then they are priced at different scales
Currently, the price of Coke products in Vietnam market is higher than the
corresponding products of the same type, but the difference in price is not
high. It is possible to look through the price list is updated recently between
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Glass bottle 5.000
d. Promotion:
of consumers, and realize that promotion activity is one of the best tools to
promote the image of any products. Coca-Cola Company has launched many
promotions to attract buyers, gain the market share and even get the
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o “Flip Coca-Cola, Find the Lucky” from June 10 th to September 7th in
Sprite and Samurai, both plastic bottles and glass bottles). Person can
flip the bottle caps and find the lucky code under caps to have a
kit,etc.)
districts across the country in order to contribute a cozy New Year and
convey the good wishes for people having difficult circumstances. That
was the 8th year organizing this activity to give gifts into poor families
directly brought 2,500 gifts to each person at Thuong Tin (HN), Dong
Anh (HN), Hoa Vang (DN), Lien Chieu (DN), Thu Duc (HCMC), Can Gio
rice, 7,500 bottles of soft drinks, valued at more than 1.2 billion.
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o In Tet Holiday of 2014, Coca-Cola has launched 3 impressive
programs:
e. Place:
role of CCBV in Ho Chi Minh City. Three manufactories in three parts of Vietnam
distribution network, which is the most important part for the sales of
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company - in region and always provide products enough for the retailers
Because Pepsi – biggest rival of Coca-Cola – entered into Vietnam market before,
so Pepsi has reached more retailers than Coca-Cola. So company often focus on
expand and attract more retailers by providing support activities such as gifting,
3. SWOT:
a. Strengths:
Interbrand, The Coca Cola Company is the most valued ($77,839 billion) brand in
the world.
World’s largest market share in beverage: Coca Cola holds the largest
for more than $3 billion in 2012 and increased firm’s sales and brand
Besides, Coca Cola also invests strongly in ads on television. These ads are so
Suitable price with almost social class: Coca Cola is very popular beverage in
the world and their price is also cheap. In Vietnam, Coca Cola is suitable with
200 countries and more than 1.7 billion servings a day. In Vietnam, two main
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distribution channels of Coca Cola are very effective:
Customer loyalty: The firm enjoys having one of the most loyal consumer
groups.
beverage producer in the world and exerts significant power over its suppliers to
change, active healthy living, water stewardship and many others, which boosts
b. Opportunities:
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Bottled water consumption growth: Consumption of bottled water is expected
fight obesity, demand for healthy food and beverages has increased drastically.
The Coca Cola Company has an opportunity to further expand its product range
countries, where Coca Cola could increase and maintain its beverages market
share.
c. Weaknesses:
Coke, Fanta, Sprite and other carbonated drinks. This strategy works in short
it will prove weak as the world is fighting obesity and is moving towards
Cola is still focusing only on selling beverage, which puts the firm at
disadvantage. The overall consumption of soft drinks is stagnating and Coca Cola
Company will find it hard to penetrate to other markets (selling food or snacks)
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High debt level due to acquisitions: Nearly $8 billion of debt acquired from
CCE’s acquisition significantly increased Coca Cola's debt level, interest rates and
borrowing costs.
water scarce regions and using harmful ingredients to produce its drinks.
Cola currently sells more than 500 brands but only few of the brands result in
more than $1 billion sales. Plus, the firm’s success of introducing new drinks is
d. Threats:
conscious and reduce their consumption of carbonated drinks, drinks that have
large amounts of sugar, calories and fat. This is the most serious threat as Coca
Water scarcity: Water is becoming scarcer around the world and increases both
in cost and criticism for Coca Cola over the large amounts of water used in
production.
For this reason, many governments consider to pass legislation that requires
Decreasing gross profit and net profit margins: Coca Cola’s gross profit and
net profit margin was decreasing over the past few years and may continue to
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Competition from PepsiCo: PepsiCo is fiercely competing with Coca Cola over
market share in BRIC countries. Although in Vietnam, Coca Cola still leads the
carbonated drinks sales, which is a threat for the Coca Cola as the market of
4. SWOT Analysis:
SO STRATEGIES
($77,839 billion)
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O1. Bottled water consumption S2+S3 vs O1+O4:
healthy food and beverage. Research and develop products which are good
consumption in emerging
markets
WO STRATEGIES
O2: High technology care the healthy consumers with amazing advertising
healthy food and beverage. Products made from healthy materials (related
diversification)
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O4: Growing beverages
consumption in emerging
markets
ST STRATEGIES
($77,839 billion)
PepsiCo
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T5. Negative publicity.
drinks market
From these above SWOT, we are going to conclude following issues regarding to Coca
Cola Company.
V. Key Issues:
conscious and reduce their consumption of carbonated drinks, drinks that have
large amounts of sugar, calories and fat. If Coca Cola still not develop their products,
2. Brand failures or many brands with insignificant amount of revenues: Coca Cola
currently sells more than 500 brands but only few of the brands result in more than
$1 billion sales. Plus, the firm’s success of introducing new drink is weak. Many of
3. Competitor Pepsi: Pepsi is a very strong competitor of Coca Cola. If Coca Cola does
not keep the development, it is completely possible that Pepsi can be exceeding
Coca Cola.
A. Objectives:
To make solutions for above issues regarding Coca Cola, we are going to set
following objectives:
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2. Bringing images of new products popular to customers in an effective way
B. Marketing Strategy:
Coca-Cola offers variety of brands such as Coca-Cola Classic, Diet Coke, Fanta,
Sprite, Dasani water, etc. The Coca-Cola brand has been adopted the strategy of
global brand. They are considering the world market as single market place and
use consistency marketing strategy for many years. However, now the trend is
player in United States, Europe and Asia, Africa. In U.S.A & Europe it has reached
maturity stage where it can’t expand its market more but if we consider Asia, it is
still in the growth phase. Coca-Cola is currently going through the maturity stage
in Western countries. This maturity stage lasts longer than all other stages.
Management has to pay special attention to products during this stage of the
period the previous year, from $ 11.47 billion the same period a year earlier to
11.04 billion U.S. dollars. Meanwhile, in the fourth quarter (2013) profit fell
8.5%, from $ 1.87 billion the same period a year earlier to 1.71 billion U.S.
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dollars. During the third quarter, Coca-Cola's profit fell 24% over the same
period the previous year, revenue was only 5.66 billion U.S. dollars.
declaring loss in many years but the revenue of Coke is not stop increase in many
years. According to statistic of Ho Chi Minh City tax department, the revenue of
Coke in 2010 is double times compared to the revenue in 2008, after only 2
years: (http://kinhtedautu.vn/news/detail/1538/dau-tu-nuoc-ngoai-va-doanh-
nghiep-dan-toc.cnv)
Business Strategy:
analyzers and reactors, we define that Coca-Cola act as an analyzer. We think this
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strategy suitable for Coca-Cola market in Vietnam. Analyzer strategy is between
core product-market and continue research and develop to expand new product
Pepsi- the main competitor of Coca- Cola has the number of beverage product
many products such as Fanta, Sprite, Samurai … that developed from carbonated
products. They develop their added product in each brand such as Strawberry
From objectives mentioned above, we are going to offer some solutions for
1. Product Strategy:
Coca-Cola is one of the solution for Coca- Cola to expand competition. It can help
R&D products which are good for health of customers, made from healthy
materials can change the negative image of Coca with difficult people and expand
create new feeling for customer: unique, funny, style and fresh.
Besides good design, the beverage container is unique in the way the consumer is
environment (eco- friendly). Increase brand value for Coca- Cola. This product
2. Price Strategy:
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Price strategy of coca in order to provide appropriate price to consumers and
make them comfortable about price and product quality, short the distance
Coca-Cola have a high market share, competitor pressure has forced customer
sensitivity to price to be fairly high, sales volume is of course high and profit
margin is fairly low as the Coca-Cola products are fast moving consumer goods.
The price strategy based on the customers’ psychology. For example, the
housewives also prefer to buy the cheaper products. This points to penetration
strategy. Penetration pricing means the setting of lower rather than high prices
This can only be done where demand for the product is believed to be highly
flexible, basically demand is price sensitive and either new consumers will be
attracted, or existing consumers will buy more of the product because of a low
price.
A good penetration strategy may lead to large amount of sales and large market
shares. The main product may be priced low to attract sales, customers are then
sold accessories. This strategy will work nicely in promoting re-use of Coca-Cola
important. The product that achieves high market penetration often becomes the
Currently, the price of Coke products in VN market is higher than the respective
products of the same type, but the difference in price is not high.
3. Advertising:
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Advertising is very important with any brands and products, especially with new
products. There are Advertising Forms that Coca Cola Company can apply:
by 2015.
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McDonalds though, The
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SPAM, Opportunities in social site YouTube and good adverts
networking sites for viral have created cult followings on
advertising. the Video websites.
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Besides, in Vietnam, there is just one official website of Coca Cola Company, but
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Introduction about Coca Cola Company: this helps breading the image of
Company.
website. For example, website can provide some interesting games regarding
products of Coca Cola Company. It should also provide online support tools
for customers.
4. Personal selling:
The sales force needs to communicate with current distribution channels for
Coca-Cola. The instant Personal selling of Coca Cola Company in Vietnam is quiet
good. But in Vietnam, Coca Cola should open more vending machines which can
5. Sales promotion:
Now, Sale promotion is the well way to impact on consumer behavior, stimulate
sales. The promotion program must match lifestyle, psychology and personality
attractive prizes (travel, dinning out with idol, smart phones, music concert
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However, more promotions will cause psychological addiction by promotional
for customer, Coke should not make "addiction", especially with targets customer
We find some types of sales promotion and analyze strength and weakness,
requirements.
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purchasing
packaging.
lower.
6. Public relation:
The PR activity bring a new positive image, creative, energetic, familiar and close
Press release can increase brand image appeal, show socially responsible of
company. Coca Cola can often focus on activities for young people such as
contest ...to increase its level of perception and trust from customer.
7. Direct marketing:
customers can be tracked as having responded to the promotion, Coca Cola can
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Besides email, Coca Cola should also take full advantages of social networks such
channels.
C. Action Plan:
to product.
of product
After finish the
Press Release -Portray a better 1 day
Market Test
brand social
responsibility.
Bread image of
TV Advertising After Press Release 6 months
product to customers
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VII. Controls:
Control market testing Collect feedback from customers to After finish Market
Control Sales Promotions Evaluate from the Sales Report and have 2 months after
Promotions
VIII. References:
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