malik safdar saharan marketing plan
TRANSCRIPT
12/3/2015
| Malik Safdar
COCA
COLA MARKETING PLAN
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CONTENTS
ContentS .................................................................................................................................................................................. 2
EXECUTIVE SUMMARY……………………………………………………………………………………...………..3
2 INTRODECTION ..................................................................................................................................................... 3
2.1 MISSION ..................................................................................................... 3
2.2 Vision ......................................................................................................... 4
2.3 Goals .......................................................................................................... 4
3 PRODUCT AND SERVICE .................................................................................................................................... 5
3.1 Product ...................................................................................................... 5
3.2 Price ........................................................................................................... 5
3.3 Place .......................................................................................................... 5
3.4 Competition ................................................................................................ 6
4 MARKETING FOCUS ............................................................................................................................................. 7
4.1 Market search ............................................................................................. 7
4.2 Strategies ................................................................................................... 7
4.3 Demand of Market ...................................................................................... 8
5 Marketing plan ....................................................................................................................................................... 9
5.1 Television Advertisements ......................................................................... 9
5.2 Newspaper Advertisements ...................................................................... 10
5.3 Documentary ............................................................................................ 11
5.4 Budget ...................................................................................................... 11
6 Plan B .......................................................................................................................................................................11
7 Summery ................................................................................................................................................................12
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1 EXECUTIVE SUMMARY
I am the student of BBA studies in BZU LAYYAH CAMPUS and I have established this marketing
plan after critically examining and thoroughly researching over it. It consists of examining market
research, auditing situation analysis and carefully scrutinizing the soft drink industry and
possibilities for Coca Cola in the market. We have carefully analyzed the internal and external
business environments and critically examined the industry in general, considering all external
threats and opportunities. 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 will enable to
reach a market size of an estimated 8,688,300 people (targeted) with a forecasted sales growth
prospect of 7.3% over the next 4 years ($243,029.47 profits), 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 shares within this market, while strategically carrying the company up to the
top spot as the market leader in the functional drinks segment of soft drinks. Export potential will
be considered in China.
2 INTRODECTION
The Coca-Cola Company traces it’s beginning to 1886, when an Atlanta pharmacist, Dr. John
Pemberton, began to produce Coca-Cola syrup for sale in fountain drinks. However the bottling
business began in 1899 when two Chattanooga businessmen, Benjamin F. Thomas and Joseph B.
Whitehead, secured the exclusive rights to bottle and sell Coca-Cola for most of the United States
from The Coca-Cola Company. The Coca-Cola Company’s core undertaking is to benefit and refresh
everyone it reaches. The objectives of the marketing plan are strategically cantered around 3
criteria: to create a strong consumer awareness towards a completely new bubble tea product from
Coca-Cola, to establish a wide brand recognition through the capture of market shares in the
functional drinks segment, and to become the top market leader in that particular segment within
the forecasted sales figures.
2.1 MISSION
“Our mission statement is to maximize shareowner value over time”
In order to achieve this mission, we must create value for all the constraints we serve, including our
consumers, our customers, our bottlers, and our communities. The Coca Cola Company creates
value by executing comprehensive business strategy guided by six key beliefs:
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1. Consumer demand drives everything we do.
2. Brand Coca Cola is the core of our business
3. We will serve consumers a broad selection of the nonalcoholic ready-to–drink beverages
they want to drink throughout the day.
4. We will be the best marketers in the world.
5. We will think and act locally.
6. We will lead as a model corporate citizen.
Everything we do is inspired by our enduring Mission:
To Refresh the World...in body, mind, and spirit.
To Inspire Moments of Optimism...through our brands and our actions.
To Create Value and Make a Difference...everywhere we engage.
2.2 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 to work
Portfolio: Offering the world a portfolio of drinks brands that anticipate and satisfy people's
desires and needs
Partners: Nurturing a winning network of partners and building mutual loyalty
Planet: Being a responsible global citizen 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, lean and fast-moving organisation.
2.3 Goals
Our goal is to try to give back as much, or where possible, more, than we take. We divide our
commitment into three main areas of focus: women, water and wellbeing.
Women
5 by20 is our commitment to empower five million women entrepreneurs by 2020. We’re
implementing programmes across the world which addresses the most common barriers women
face in the marketplace, and giving women access to training, financial services and mentoring.
5by20 is currently working in more than 40 countries.
Water
we understands the priceless value of water and we work vigorously to conserve water worldwide.
We’re working to replenish the water we use to make our drinks with the ultimate goal of being
water-neutral by 2020. At Our system is becoming more efficient in its water use by reducing the
amount used per litter of product. And Coca-Cola bottling plants around the world are recycling
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wastewater, treating it to stringent standards and returning it to nature at a level that supports
aquatic life - sometimes returning it cleaner than we found it.
Wellbeing
our priority is always our consumers and helping them to be healthy and happy. We believe choice
and information are two fundamental requirements to help consumers make healthy lifestyle
choices for them and their families. We also want to inspire people to move more, more often,
which is why we have pledged £20million to doing this between now and 2020.
3 PRODUCT AND SERVICE
3.1 Product
Businesses must think about products on three different levels, which are the core product, the
actual product and the augmented product. The core product is what the consumer is actually
buying and the benefits it gives. Coca Cola customers are buying a wide range of soft drinks. The
actual product is the parts and features, which deliver the core product. Consumers will buy the
coke product because of the high standards and high quality of the Coca Cola products. The
augmented product is the extra consumer benefits and services provided to customers. Since soft
drinks are a consumable good, the augmented level is very limited. But Coca Cola do offer a help
line and complaint phone service for customers who are not satisfied with the product or wish to
give feedback on the products.
3.2 Price
Since Coca Cola Intl faces a major threat from its competitor Pepsi Co., so naturally the Pricing is
done keeping in view the increasing rivalry with Pepsi. Pricing is basically standard for all over the
world. Price changes occur seldom after a longer period of time say, a year etc. Mostly prices are
devoid of governmental and/or political laws and regulations but in Pakistan, due to an ever
increasing rate of Inflation, prices have increased in a short span of time.
3.3 Place
The Coca Cola Company has always focused wide scale distribution. This is the reason, 94% of the
world’s population knows about Coke. “Coca Cola” is the most recognized word after OK.
Coca Cola sets its own distributions directly to stores. Stores include a wide variety of Supermarket,
Marts, Convenience Stores, Retail Stores and Departmental Stores. The channel distribution of Coca
Cola Intl is extremely large.
Over time, they have produced many products and thus have increased number of warehouses for
specific products.
Coca Cola Intl has also improved services via setting up a national service network.
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3.4 Competition
MAJOR COMPETETOR: PEPSI CO.
PepsiCo is a world leader in convenient foods and beverages, with revenues of about $27 billion and
over 143,000 employees. The company consists of the snack businesses of Frito-Lay North America
and Frito-Lay International.
Pepsi-Cola beverages are available in more than 190 countries and territories. In Asia, they selected
Lahore to make their regional office. This was done in 1970. This regional office is monitoring all the
operations carried out in South West Asia.
Pepsi Co. has focused on these marketing principles to attain their higher share of market in Asia:
Measuring Satisfaction using various techniques
Increasing customer perceived value (CPV)
Increasing shareholder wealth. The earnings per share are expected to grow to 116 Rs. In
2010.
Maintaining its supply chain management to ensure that the customer gets Pepsi exactly
when he requires.
Mass Marketing via advertising Pepsi with customer attraction areas e.g. celebrities
(Shahrukh Khan, Junaid Jamshed, Adnan Sami), Sports (Cricket), concerts (Haroon etc)
Price Indiscrimination all over the region
Focusing on Brand image
Customer retention schemes such as lucky draw, meeting your favorite celebrity etc
Adding social and ethical benefits to every bottle they sell.
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4 MARKETING FOCUS
4.1 Market search
The primary target market of the Coca-Cola Company is all consumers of all nations that have a
thirst for a high-quality beverage from a reputable brand that cares about small communities and
saving the environment. The Coca-Cola Company is well known for advertising to persons of all
ages, genders, incomes, ethnicity and lifestyles. Nevertheless, more specifically, over the last
decade the Coca-Cola Company has focused on a secondary target market, based on specific
psycho-graphic characteristics, of consumers that are health conscious and interested in buying
products to support their overall wellness. The Coca-Cola Company has reached this market through
many product lines, and has customized their website to provide healthy resources and marketing
of products that are considered smart choices.
4.2 Strategies
Product Strategy
The Core: Bubble Tea beverage in a pre-bottled, ready-to-drink format. Branding Colourful, aspect of play, round shaped, prominent Bubble Buzz logo written in modern font, catchphrases such as “Think outside the Bubble” and “Get Your Buzz”. Trade name: Bubble Buzz™, a Coca-Cola product Brand personality: energy, funky, cool, functional, original, funny, healthy, etc. Brand equity: Coca-Cola provides a quality, consistent, innovative and accessible soft drink reputation. Augmented product: Nutritional information, Status (social drink), Features promoting the
website, Health benefit of a green tea base. Marketing considerations
Product life cycle: Bubble Buzz is a low-learning product. With a strong marketing campaign, “sales
[will] begin immediately and the benefits of the purchase are readily understood” Since Bubble Buzz
is prone to product imitation, Coca- Colas strategy is to broaden distribution quickly, which is
currently feasible thanks to the company’s high manufacturing capacity.
Product class: Food & beverage, Soft Drinks, Functional Drinks
Price Strategy
The price strategy that will be undertaken should consider the following aspects:
1. Consumer demand
2. The product lifecycle
Customer demand
Customer demand is a crucial factor which is driven by tastes, income and availability of others
similar products at a different price (mentioned later in the potential substitutes section). For a lot
of consumers, value and price are highly related: ‘’the higher the price, the higher the value’’.
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Consequently, Coca-Cola’s intention to position Bubble Buzz as a unique, innovative and attractive
product gives it a certain control over Bubble Buzz price. To be able to implement higher pricing
though, the minimization of the non-monetary costs to customers should also be include
along with awareness of the product (notably by advertising) and value (benefits).
The product life-cycle
The company should take advantage also to the fact that the newer the product and the earlier in
its lifecycle the higher the price can usually be. It ensures a high profit margin as the early
adopters buy the product and the firm seeks to recoup development costs quickly and it also
brings a certain prestige to the product.
Promotion Strategy:
Objectives:
To initiate strong awareness about the launch of Bubble Buzz throughout Generation
Y (10-29 years old) consumers as well as their parents.
To win market shares over our top functional drinks competitor, PepsiCo.
Message:
The promotional outputs will convey the clear message that “Bubble Buzz is a healthy
drink for sporty and young people who simply enjoy taking care of their body and life.”
Concepts:
Think outside the bubble”: Be old, be Original, Be Different, Be Yourself.
“A good spirit in a good body.”
“For the out-of-the-ordinary individuals who like to challenge themselves.”
4.3 Demand of Market
Basic Concept of Demand and Supply and demand is perhaps one of the most fundamental
concepts of economics and it is the backbone of a market economy. Demand refers to how much
(quantity) of a product or service is desired by buyers. The quantity demanded is the amount of a
product people are willing to buy at a certain price; the relationship between price and quantity
demanded is known as the demand relationship. Supply represents how much the market can offer.
The quantity supplied refers to the amount of a certain good producers are willing to supply when
receiving a certain price. The correlation between price and how much of a good or service is
supplied to the market is known as the supply relationship. Price, therefore, is a reflection of supply
and demand. The relationship between demand and supply underlie the forces behind the
allocation of resources. In market economy theories, demand and supply theory will allocate
resources in the most efficient way possible. Let us take a closer look at the law of demand and the
law of supply. Demand means desire to purchase a commodity for which the consumer has the
power to purchase. So demand has two conditions:
1. Desire to purchase 2. Purchasing power
FACTORS AFFECTING DEMAND Price of relative goods: Demand for coca cola is also influenced by
the change in price of relative goods. In case of coca cola there are number of substitute goods
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available in the market, we have Pepsi, Miranda,Gorment, etc. now if the price of coca cola
increases from Rs 12 to Rs 22 whereas the price of other aerated drinks remain the same then the
demand for coca cola will fall down. C Quantity demanded coca cola Income of the Consumer:
There is a direct relationship between income of consumer and demand. Now coca cola being a
normal good, if there’s an increase in income, the demand will increase and vice versa. Taste and
preference: Taste and preferences of the consumers also influence the demand to greater extent. In
case of coca cola, if there are hard core consumers who prefer the taste of coca cola, even if the
price of coca cola increases, the demand will remain the same. But if the consumers have no taste
or preference of coca cola, then if the price increases the demand decreases. Government Polices
As the study shows, there was a steep reduction in the demand of coca cola when the pesticides
were found in few samples of coca cola. As a result consumer was shifting from coca cola to other
natural drinks so therefore the demand for coca cola decreased. Time: Time is an important factor
that affects the demand of coca cola e.g. the demand for coca cola goes up during festive seasons
and during summers Age of the population: This product is meant for the children, adults and also
for the old people so the age groups are not much affected the demand of the product so demand
remain same and by the increase in the population, the demand of the product also increases.
SHIFT IN DEMAND CURVES Shift in demand curves refers to the change in demand due to change in
factors other than price. Shift can be of 2 types:
1) Upward shift. 2) Downward shift.
Upward shift: When the demand for product increases, price being constant, due to change in
other factors e.g. Increase in income. If there’s an increase in the income of consumers in the
future, then there’s a possibility that the consumer will shift from local drinks in the market to coca
cola. From this figure we can see that when the income of the consumer increase in the future then
the demand for coca cola increases.
Downward shift: When the demand for the product decreases at same price.eg the demand for
coca cola reduces when people found that there were pesticides found in few samples of coca cola.
5 MARKETING PLAN
5.1 Television Advertisements
Fifty Years of Coca-Cola Television Advertisements: Highlights from the Motion Picture Archives at
the Library of Congress presents a variety of television advertisements, never-broadcast outtakes,
and experimental footage reflecting the historical development of television advertising for a major
commercial product. The online collection includes five excerpts from stop-motion
advertising developed for Coca-Cola between 1954 and 1956 by the D'Arcy agency and makes public
for the first time eighteen excerpts from the Experimental TV Colour Project of 1964, which
determined the best lighting for the cans, bottles, and performers in television advertisements.
Featured advertisements include the 1971 "Hilltop" commercial with an
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international group of young people on an Italian
hilltop singing "I'd Like to Buy the World a Coke"; the "Mean Joe Greene" commercial from 1979;
the first "Polar Bear" commercial from 1993; the "Snowflake" commercial from 1999; and "First
Experience," an international commercial filmed in Morocco in 1999.
5.2 Newspaper Advertisements
The mission of the Library of Congress is to make its resources available and useful to Congress and
the American people and to sustain and preserve a universal collection of knowledge and creativity
for future generations. The goal of the Library's National Digital Library Program is to offer broad
public access to a wide range of historical and cultural documents as a contribution to education
and lifelong learning.
The Library of Congress presents these documents as part of the record of the past. These primary
historical documents reflect the attitudes, perspectives, and beliefs of different times. The Library of
Congress does not endorse the views expressed in these collections, which may contain materials
offensive to some readers.
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5.3 Documentary
Just exactly how Corporations treat people, especially those in the third world. In this feature length
documentary, directors German Gutierrez and Carmen Garcia present a searing indictment of the
Coca-Cola Empire and its alleged kidnapping, torture and murder of union leaders trying to improve
working conditions in Colombia, Guatemala and Turkey.
The filmmakers follow labour rights lawyers Daniel Koala and Terry Collingsworth and an activist for
the Stop Killer-Coke! campaign, Ray Rogers, as they attempt to hold the giant U.S. multinational
beverage company accountable in this legal and human rights battle.
Many union leaders at Coca-Cola's Colombian bottling plants have been murdered. Hundreds of
other Coke workers have been tortured, kidnapped and/or illegally detained by violent
paramilitaries, often working closely with plant managements.
5.4 Budget
Coca-Cola's Commitment to Advertising Spending
Due to the nature of the Industry, Coca-Cola has made a yearly commitment to large ad spends,
spending a total $3.499 billion in 2014, $3.266 billion in 2013 and $3.342 billion in 2012.
Coca-Cola's advertising spend accounted for 6.9% in total revenue for each year from 2012 to 2014.
At the end of the year in 2014, Coca-Cola was the largest advertiser in the beverage industry.
This large advertising spending has allowed Coca-Cola to gain a competitive advantage in key areas.
Its advertising spending and strategy has helped it successfully introduce new products into the
marketplace, increase brand awareness and brand equity among consumers, increase the
knowledge and education of consumers, and increase overall sales.
6 PLAN B
The human mind is wired to detect patterns. We are very good at it; so good in fact, that we
imagine patterns even when they don’t really exist. This means that we all have the inclination to
validate our beliefs and hypotheses. Researchers call this the confirmation bias, and it is so
prevalent that it makes us overconfident in our beliefs and can lead to denial and bad decision
making. It’s also partially to blame for why we tend to stick to plan A instead of evolving plan B. it
creates an unrealistic devotion to our original strategy. In business, it manifests itself in three ways;
how we collect information; how we interpret information; and how we selectively recall this
information from memory. The confirmation bias is the result, in part, of how information is
gathered and stored in the mind: first in first out. Initial impressions tend to be the most significant,
and they are thoughts we want to defend. We remember later information that’s why some people
find it difficult to overcome childhood traumas and why our earliest influences are often the
greatest. It’s very difficult to change someone’s mind once it’s made up according to Jonathen
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Baron, a psychology profession at the University of Pennsylvania ‘his experiments have shown that
initial ideas and information make a much greater impression than subsequent ideas and
information. He says that you’ll naturally form a more positive impression of someone if he or she is
described as ‘’intelligent, industrious, impulsive, critical, stubborn and envious’’ than as ‘’envious,
industrious, impulsive, critical, stubborn and envious and intelligent.’’ Reversing the order of the
description changes the impression we get, leaving a much stronger memory trace. Once we have
the impression, we’ll work to defend its position in the mind, to confirm it.
7 SUMMERY