Coco Cola Marketing Plan by shuifanglj


									Coco Cola Marketing Plan
Summary: Marketing Details for Coco Cola.

Marketing Plan - Coca Cola

Executive Summary

The Coca-Cola Company was first established in 1886 by Dr John Styth Pemberton. Today, the company is
the world's leading manufacturer in the beverage industry, operating globally in more than 200 countries
with its head office located in Atlanta, USA. It produces more than 300 beverage brands and over 1.06 billion
drinks are consumed per day around the world.

Mission Statement

The Coca-Cola Company's mission statement is:

`Remind Coca-Cola is the read thing' but their motto now has changed to `To benefit and refresh everyone
who is touched by our business.'

Also Coca-Cola would hope to provide the best quality drink for everyone, all the employees working for
them being at their top and fulliest.


Marketing is the role used by the business to plan, price, promote and distribute products/services to
individuals. The Coca-Cola Company's marketing includes:

(i) Situational analysis

(ii) Target Market

(iii) Objectives/Goals

(iv) Marketing strategies and the marketing mix

(v) Monitoring & Controlling

(i) Situational Analysis

The Coca-Cola Company has been operating for over a century and is highly successful. It is currently in the
renewal level of the post-maturity stage in the business life cycle. This is shown in Fig. (10).

Sales ($)

Fig. (10) The Coca-Cola Company's business life cycle

SWOT Analysis

Strengths (S) Weaknesses (W)

· Has been operating successfullyfor over a century.· Is known world-wide and operates in more than 200
countries.· Coca-Cola has a large share of the cola segment - holding approximately 85 per cent.· The Coca-
Cola Company is the mostrecognised trademark in the world. · The contract The Coca-Cola Company has
with its bottlers is under constant negotiations.
Opportunities (O) Threats (T)

· Has significant growth opportunities.· Has sufficient capital to expand.· Has the potential to innovate and
differentiate the company's products to sustain a competitive advantage.· May merge with other global
businesses to eliminate competitors.· Capable of expanding into other markets other than the soft drink
market. · Has many major global competitors with its main one being PepsiCo.· Coca-Cola can be substituted
by other soft drink products made by its competitors. These competitors may develop marketing strategies
to eliminate The Coca-Cola Company.· There may be an economic downturn in the business cycle.

(ii) Target Market

The company's beverages are generally for all consumers. However, there are some brands, which target
specific consumers.

For example, Coca-Cola's diet soft drinks are targeted at consumers who are older in age, between the years
of 25 and 39. PowerAde sports water target those who are fit, healthy and do sport. Winnie the Pooh sipper
cap Juice Drink target children between the ages 5-12.

This type of market approach refers to market segmentation.

The Coca-Cola Company when advertising, has a primary target market of those who are 13-24, and a
secondary market of 10-39.

(iii) Objectives/Goals

Coca-Cola main objectives are to supply everyone their favourite drink and to satisfy the consumer needs
and wants. Coca-Cola second main objectives are to provide profit to the shareholders and increase the
market share.

(iv) Marketing strategies and marketing mix

Marketing mix:


The Coca-Cola Company's products include beverage concentrates and syrups, with the main product being
finished beverages.

The business has over 300 brands of beverages around the world with the main ones being Coke, Fanta, Lift,
Sprite, Frutopia 100% Fruit Juice, and PowerAde.

The Coca-Cola Company packages its beverages into plastic bottles of sizes 2 litres, 1.25 litres, 600mL and
300mL. These are also available in aluminium cans of 375mL.

Coca-Cola is the most well known trademark, recognised by 94 per cent of the world's population. The
business is very successful and holds a very good reputation.

Marketing strategies for product

The Coca-Cola Company uses marketing strategies to differentiate its product from its competitors to gain a
competitive advantage. These are listed in the table below.

Marketing strategy Explanation of marketing strategy

Extension/product differentiation In 2002, the Coca-Cola Company extended the products of Coke and
developed the new products Coke with lemon and Vanilla Coke. This extension:· Responded to consumer
demands.· Generated sales and profit.

Innovation In 2001, Coca-Cola had innovated and developed the introduction of purchasing the company's
products from vending machines via SMS messaging.In 2002, the company innovated and came up with a
new packaging idea, the Fridge Pack. The Fridge Pack consists of cans packed 2-by-6. This innovation has:·
Increased consumer awareness and preference.· Increased rate of consumption and profitability.

The prices of Coca-Cola's products vary according to the brand and the size. The prices of the main products
are shown below.

Product Size Prices (approx. not on sale prices)

Coke, Fanta, Lift, SpriteCoke, Fanta, Lift, SpriteCoke, Fanta, Lift, SpriteCoke, Fanta, Lift, SpriteCoca-Cola soft
drinksCoca-Cola soft drinksPowerAde 2L bottle 375 x 18 cans --- $2.57$1.35$2.10 -

 Product                 size                Price
 Coke                    2L bottle
 Fanta                   0.25L bottle
 Lift                    1600mL bottle
 Sprite Coke             300mL bottle
 Franta                  375 x 30 cans

Pricing Methods/Pricing strategies

The Coca-Cola Company's products are sold in retail stores, convenient stores, petrol stations etc. The
pricing methods/strategies are set by those the company sells to. Petrol stations and convenient stores
usually sell Coca-Cola products at a fixed price.

However, retail outlet uses pricing methods and pricing strategies when selling Coca-Cola products.

Pricing methods

Pricing method Explanation of pricing method

Competition-based pricing Coca-Cola products are usually priced below, above or equal to its competitors'
prices.For example, during Easter (2003) sale periods (Coca-Cola vs. Pepsi):Coca-Cola soft drinks 2L -
$1.68Pepsi soft drinks 2L - $1.87Coca-Cola soft drinks 375 x 18 - $9.98Pepsi soft drinks 375 x 24 - $9.98

Discount price Coca-Cola products are often marked down during sale periods and special occasions. This
will:· Generate sales· Increase profits

Pricing strategies

Pricing strategy Explanation of pricing strategy

Meet-the-competition pricing The Coca-Cola products pricing are set around the same level as its

Psychological pricing Most of the Coca-Cola products use this method of pricing. For example, for a pack of
375mL x 18 cans of Coca-Cola soft drinks it is priced at $9.98 instead of $10.00.This pricing strategy makes
consumers perceive the products to be cheaper.

Promotional strategies

The business uses a range of promotional activities, shown in the table below.

Promotional strategy Explanation of promotional strategy

Advertising The Coca-Cola Company uses advertising as its main source of increasing consumer awareness.
It mainly uses the television. There are many television advertisements on Coca-Cola products. This source
allows the company's products to reach a large audience.The latest television advertisement for Coca-Cola
soft drinks was the `You know you want it' advertisement. One of the older one are ` If you drink it, you get
better of life' The company also uses the radio as another source of advertisement. This is a cheaper source
of approach compared to the television.Recently, the company benefited from its involvement in the world's
celebrated games such as the Olympics and the FIFA World Cup. Where millions were watching these games,
the business had substantial advertising and promotions of the company's brands.The cost of advertising
over the past 3 years is shown in Fig. (11).Cost ($ mil) YearFig. (11) The Coca-Cola Company's advertising

Personal selling Every year, The Coca-Cola Company has a highly trained sales team, which acts as a
representative of the company to the retailers. This strategy helps to maintain service and product loyalty. It
has been demonstrated by the business to be highly effective.

Publicity In February 2003, Vanilla Coke was released to the media as a news brief outlining the huge profit
achieved by the business (from the Sydney Morning Herald 14th February 2003). This helped The Coca-Cola
Company to strengthen the image of the business's products.

Place of distribution

The Coca-Cola Company sells its products to bottling and canning operations, distributors, fountain
wholesalers and some fountain retailers. These then distributes them to retail outlets, milk bar and corner
stores, restaurants, petrol stations and newsagents. This is shown in Fig. (12).

The Coca-Cola Company


Retail/corner stores

Restaurants, petrol stations


Fig. (12) The Coca-Cola Company's distribution channel

Place strategies

Place strategies Explanation of place strategy

Indirect distribution The Coca-Cola Company uses intermediaries in its distribution. That is, the company
does not sell its products directly to its consumers.

Intensive distribution The Coca-Cola Company uses the intensive distribution strategy. The business's
products are sold in almost every outlet including: · retail outlets · small shops · restaurants · petrol stations
· newsagents · schools · sports and entertainment venues· from vending machines

(v) Monitoring & Controlling

          Share price – relative performance

         Coca-Cola Amatil
         S&P ASX 100 Industrials
CCA’s share price and the S&P ASX 100 Industrials Index have been indexed to 100 from 1
January 2001 to 28 February 2007 to allow meaningful comparison.

       Revenue split

Share price – relative performance

   Carbonated beverages
   Non-carbonated beverages

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