The Back Story of Coca Cola (marketing strategy and planning)

 

cThe Coca Cola Company is the largest beverage company in the world (Jurevicius, O 2016). Over 500 non-alcohol beverage brands are owned by The Coca Cola Company, and also it has operated in over 200 countries in the world. They are not only making sparkling beverages, but also produce a wide range of other beverages such as juice, enhanced waters, sport and energy drinks. Four sparking brands of their beverages are ranking into top five popular non-alcohol sparking beverages, including Coca Cola, Fanta, Sprite and Diet Coke. The total revenue of the company is US $ 44.294 billion in 2015 (Jurevicius, O 2016). Moreover, they have 123,200 employees in 2016 (Jurevicius, O 2016).

A well development of marketing strategy and planning is cornerstone for the successful of Coca Cola Company (Marketing91 n.d.). This is because strategic planning and marketing can become an important guide for long-term direction of a company (Brooksbank, Garland, & Werder 2012, p459). If we apply three strategic and planning steps for Coca Cola Company, it is not hard to find out reasons why they will be the leader of beverage company. These strategic and planning steps include 5Cs (Company, Customer, Context, Collaborators, Competitors), STP (Segmentation, Targeting, Positioning), and 4Ps (Product, Price, Place, Promotion) (Iacobucci 2014, p222).

5Cs:

By 5Cs analysis, we can have a well know internal and external environments of the Coca Cola Company (Lackman & Lanasa 2013, p100).

For Company, the company own many different brands of beverage, and people are well-known this company from TV, radio, newspaper and so on.

For customer, Coca Cola Company has offer their products to a lot of places, so the customer is easily to buy it in everywhere of the world. And also, their products’ information can be found many areas for customers, including web sites, events, medias and social networks. A variety of products can be chosen by different age customers or different demands customer, for example, obesity people can choose diet coke for drinking.coca cola

Context refers as assessing the macroenvironmental issues you have to attend, such as social changes, trends, technological and policies (Iacobucci 2014, p225). Coca Cola Company has use the good technology way to spread their marketing strategy.

For collaborators, they have many distributors around the world, such as small shops, restaurants, supermarkets and vending machines.

For competitors, Coca Cola Company has many competitors in the world due to they own a wide business. The main competitor is PEPSI company for them.

STP:

STP can help us to clearly identify our targets for business.

Segmentation: The Coca Cola Company has used ‘multi-segment’ targeting strategy, including geographic segmentation, demographic segmentation, psychographics segmentation (Elbaz88, 2011). It means the company is not only focus on marketing segment. For geographic segmentation, the consumption of coca cola in summer is higher than winter, 60% and 40% respectively (Elbaz88, 2011). Hence, the company is pay more attention in hot area in the world. For demographic segmentation, the level of income has sold different products, for example, returnable glass bottles are selling for low income people. For psychographics segmentation, people who have brand conscious are more likely drink Coca Cola, because they are famous company in the world.b

Targeting: The Coca Cola Company is not only target a specific segment. Different ages, lifestyle, occupation, habits, favour of taste are considered by them.

Positioning: Obviously, the Coca Cola Company has positioned themselves into soft drink market in the world. They are always challenging their position, trying to develop new products for healthier drinks to suit modern lifestyle.

4Ps:

Product: including widest type of beverages which are divided into fruit drinks, diet category, energy drinks, tea, etc. Coca cola sells their products in about 200 countries.

Price: Coca cola has different pricing strategy due to the market and geographic segment. The pricing strategy has to consider the competitors pricing. For example, the Pepsi is the direct competitor to coke (Marketing91 n.d.).

Place: Coca cola put their products at restaurants, supermarkets, stores, gas stations, vending machines, etc. The reason is that the company wants to provide much more convenience for consumers to find their products at anywhere and at whatever time.a

Promotion: Coca cola use various promotional strategies to attract customers and increase demand in the market based on different advertising in different methods to present their product, for example, they post their advertising on television, on the magazines or on the Internet. Also, the company hires famous people to advert their product. The aim of the advertising is want to attract more customers to purchase their products. Because of the great marketing strategy of Coca cola, it becomes a famous company in the world.

Post by Mao Dong Ren, 210025799

Reference list:

Brooksbank, R, Garland, R, & Werder, W 2012, ‘Strategic marketing practices as drivers of successful business performance in British, Australian and New Zealand golf clubs’, European Sport Management Quarterly, vol.12, no.5, pp. 457-475, retrieved 23 July 2016, SPORTDiscus with Full Text, EBSCOhost.

Elbaz88, 2011, ‘Ch. 8 – Segmenting and Targeting Markets’, Blogger, 20 November, retrieved 23 July 2016, <http://elbaz-coca-cola.blogspot.com.au/2011/11/ch-8-segmenting-and-targeting-markets.html&gt;.

Iacobucci, D 2014, Marketing Management (MM4), South-Western, Cengage Learning, Mason.

Jurevicius, O 2016, Coca Cola SWOT analysis 2016, strategic management insight, retrieved 23 July 2016, <https://www.strategicmanagementinsight.com/swot-analyses/coca-cola-swot-analysis.html&gt;.

Lackman, C, & Lanasa, J 2013, ‘Competitive Intelligence and Forecasting Systems: Strategic Marketing Planning Tool for SME’s’, Atlantic Marketing Journal, vol.2, no.2, pp. 98-110, retrieved 23 July 2016, Business Source Complete, EBSCOhost.

Marketing91 n.d., Marketing mix of Coca Cola – Coca cola marketing mix, Marketing91, retrieved 23 July 2016, <http://www.marketing91.com/marketing-mix-coca-cola/&gt;.

Marketing91 n.d., Marketing strategy of Coca cola – Coca cola marketing strategy, Marketing91, retrieved 23 July 2016, <http://www.marketing91.com/marketing-strategy-of-coca-cola/&gt;.

 

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