A strategy and marketing plan for Coca Cola
The strategic objective plan must be closed align to achieve targeted goal of any organisation. Effective and achievable market plan can support to meet ultimate goal of business organisation that can be profit maximization or the market leader. The effective marketing plan talks about generic strategies and strategies about pricing, distribution, promotion, advertising and market segmentation. In other hand market penetration, market share, profit margins, budget/finance, technology and culture. These are the way to meet the main objective of business. Beside of these, this research highlight mainly how strategy of organisation impact or supports on the marketing plan. When a business organisation introduces a product the organisation should have concerned marketing action plan that takes construction of the marketing plan. Marketing plan must support and promote the strategic objective of the business organisation.
This research going to talk about coca cola Company which is world's largest beverage company providing beverages such as 100 percent fruit juices and fruit drinks, sports and energy drinks, teas and coffees and milk and soy-based beverage. The main objective of this assignment is enlightening the strategic objective of coca- cola Company by relating with impact, construction and promotion or support of marketing plan. Strategic objective of Coca-Cola Company or formation of marketing plan gives the solid shape or action program of marketing plan. Evaluating and relating marketing plan with strategic objective of Coca-Cola Company.
The assignment is appeared extremely play role in our study to understand the phases of the marketing plan that is situation analysis marketing strategic mix, decision, implementation and control. In one hand this assignment talks about alignment of marketing plan or phases with strategic objectives and on the other hand this assignment gives strategic marketing crucial idea to global challenge on marketing field and solution. And other hand this study gives in-depth knowledge on making marketing decision, on marketing competition, on target market and how to maximize the profit and sales.
This research highlights on five different sections. In first section identifying and justifying objective of assignment and in second sections accessing organisational research, third section evaluating the risk and opportunities fourth section marketing strategies and ultimately in five section is implementing and monitoring the marketing plans and conclude with analysis and recommendation.
1.1 Explaining the strategy of the Coca-Coal impacts on marketing plan.
Every organisation should have business plan which is regularly reviewed in order to regulate the business smoothly. Most of the plans are planed by corporate leader. Normally Strategic plan guides by marketing in a business organisation. It makes three type of plan that is the annual plan the long range and strategic plan. So coca- cola Company's main strategic mission, vision and objectives are to refresh the world, to inspire moments of optimism and happiness, to create value and make difference similarly vision take place within people, known as quality beverage brand, anticipate and satisfy consumer's needs. Create mutual enduring value to stake holders, profit maximization and achieve short term as well long term goal and be brand.
To achieve the above strategic objective as well as vision and mission. Coca-cola Company launched powerade as a new product. (This product has been chosen by FIFA to Hydrate 2010 FIFA world cup)
As per the changes business environment, business organisation must adapt market opportunities so, in order to maintain strategic fit of capabilities with marketplace. The decision implementation which comes from business analysis is called marketing planning.
Strategic objective of coca-cola company gives the answer of question "where we going?" in long term and marketing plan talks about way, from generating business mission to implementing and controlling the result of plan. Jobber's six panning question helping to coca-cola Company, the first question help to sketch the present situation of company, second question gives the analyses of company, third question looking to future plan of company accordingly six question allow to know us the plan remains unchanged, if not then company modify it's plan. Marketing is not evitable component part of the strategic objective. The marketing act as bridge to pass all information of market, which are the basic needs to make strategic planning. The coca-cola company made the every market decision on the basis of market information so marketing is no avoidable from strategic planning.
B1) Coca Cola company is global company to achieve the mission coca-cola Company has been produced Powerade. Now it is in market as new product but as global company it has so many challenge in macro and micro level which is can affect to achieve goal. Mainly in macro factor coca-cola Company has consider following challenge.
Political factors:- Political factors mainly refers to government policy such as financial policy, legislation priority sector of government and affect to business sector directly indirectly and coca cola company cannot escape from this.
Economic factors: - Being global company world's economy can affect coca-cola company. In this category refers mainly interest rates, exchange rates national income, inflation, unemployment, stock market to these.
Social factor: - Change in social factor can affect the business organisation mainly in social impact arise from ageing population, attitudes to work, income distribution. Company should give attention desire of people which are differ to geographically, culturally, environmentally, coca-cola realise it because demand of Europe in different from Asia.
Technological change: - If refers the change in technology change in product. In coca-cola different variety of coca-cola is example of this.
Environment: - Environment include weather and climate change for coca-cola company. According, to Asian trends if weather is hot then the demand of coca-cola will increase.
Legal factor: - Legal factor includes mainly competitor's law these all can increase extra burden for company. Rest of these, the market also play vital role success of mission vision as well as marketing plan. In market there are many components which affect directly indirectly to achieve the goal of company. Generally we consider market size, growth rates, trends, consumer income, interest, market segmentation and supplier of coca-cola company, competitive. Similarly in internal marketing audit or micro side of coca-cola there are many component which varies relation between strategies and marketing plan they are, market share, sales, profit margin, cost, strategic issues, effectiveness of marketing mix, marketing structure, marketing system. Above each and every internal as well as external component are considerable to make marketing plan.
1.2 Identifying the component part of marketing plan of Coca-Cola.
B2) SWOT analysis it examine the company's strength, weakness, opportunities and threats. After SWOT analysis we get the better idea to set marketing plans. In current state, coca-cola strength in terms of human resource, finance, market. But in terms of competition this company is Strength Company because it is market leader of beverage market.
According to above figure (SWOT analysis) sows to coca-cola company how to turn weaknesses into strength and threats into opportunities. These types of change called conversion strategies in this way SWOT analysis helps to develop strategic marketing plan.
The result of marketing audit and SWOT analysis leads to coca-cola company to define marketing objectives. Objectives set the new (powerade) product sell in which market to solve this question direct the company to strategic trust that is the generic option.
FIGURE ANSOFF MARIX
These marketing strategies talks about the alternative comprise:
Market penetration/expiation:- existing product in existing markets, basically this strategies believes old customer will be continue and new customer also begin to buy the brand.
Product development:- new/related products for existing markets, this strategy explain increasing sales by improvement of product.
Market development:- existing product in new/ related markets, this strategies used to sell in same product in new market.
Enter in new market:- new/related product for new/related markets, this strategies will prevail when new product are develop for new market.
In the context product powerade is produced by coca-cola company on the basis of product development.
Market direction and strategic objective must be co-related and this open the way to decide the product BCG matrix is the tools to decide about product. BCG matrix approach can help to understand mistake which is frequently made by any business organisation in this matter the current situation of coca-cola and stand place of coca-cola. This analysis clearly gives product and service portfolio of coca-cola. The strength of company helps to exploit the most alternative opportunities which are available in market for this. The company must analysis its current business portfolio and decide where it should invest and develop the strategies. BCG matrix helps to develop the strategic plans.
Figure of BCG
According to figure starts represents high market growth and high market share so it shows they should generate large amount of cash. Cash cows indicate low market growth and high market share it means investment needed should be low keep profit high. Similarly Dogs category business shows the market growth low and market share also low which means beware of expensive turn around plans. And question mark category business means high growth market and low market share it represent high demand due to low market share.
According this BCG matrix analysis coca-cola company falling on cash cow where a low growth and high market share is. So, the profit and cash generation is high because of low growth, investment needed should be low. The amount received from cash cows are often used to help other business or to give dividends to stockholders. So coca-cola should hold on what going on.
Core strategies indicate the appropriate market, competitors, competitive advantage, and effectiveness of core strategy, marketing mix decision implementation, and control.
Target market gives information to coca-cola company about market segmentation. In other words we can say which market is suitable for the product powerade, furthermore market segmentation talks about the segment of market where costumers are enough for product because it is impossible that all population can be the costumer of that particular product. When the coca-cola company going in market it should give look towards its competitor. If the rival competitor's positions are weak then it is easy to compete. The coca-cola has strong competitor Pepsi so it needs to do extra homework before interning in market. Another component of core strategy is competitive advantage the coca-cola company can exploit competitive advantage by giving look in quality, relatively low price, providing unique service. The strategies should be sustainable so coca-cola company test the effectiveness of core strategy by using these components which is stating in figure.
FIGURE P- 50,2.6
According to figure all component should support to the core strategy.
In decision making process coca-cola should do homework in term of price level, promotional techniques of employ distribution methods. The most importance part of marketing plan is implementation part, it evaluate the plan is strong or week. And it needs to be revised and changed if it needed it called controlling process.
1.3 Identifying issues of risk of marketing plan of Coca-Coal.
Even though there are many example of failure marketing plan because of conflict in management team, reward system, information system, culture, personalities, politics, lack of knowledge and skills. These components are enough to create risk within the coca-cola company. However, there are many methods of conflict dissolve some of them are:
Senior management support:- the management should be commitment in the plan and act as middle man to give the total support.
Match the planning system with culture of business:-as the example of the business top-down/bottom-up these culture can bring conflict in business.
The reward system:-this should reward the achievement of long-term objective rather then exclusively focus on short-term result.
Communication:-plan should be communicate within the member who are directly or indirectly involve in plan.
Training and development:-training should be provided if necessary.
These activities help to minimise the risk of marketing plan in implementing process of coca-cola company.
Construction of marketing plan
2.1 Identifying the level of importance of each component of the plan
Construction of marketing plan is no thing but it gives a concrete way to meet the strategic objective of a business. Mainly it talks about marketing audit, SWOT analysis issue, marketing strategy, market mix, finance, control and implementation. Mainly component of plan co-ordinate and integrate to all tools of marketing. Component of the plan and it's important briefly.
Marketing has been defined as the task of "finding and filling needs". Marketing plans comes in a business organisation as supporting plan of strategic objectives. Organisation should have to make different marketing plan to different product and brand. In a marketing plan includes executive summary, the current marketing situation, threats and opportunities, objective and issues, marketing strategies, action programmes, budgets and controls.
To present a quick overview of the plan for quick management review
Current marketing situation
This represent the current position of company that means background, product, competition and distribution
It is important because it show the company's strength, weakness, opportunities and threats
Objective and issues
In this areas the main issues of company's are sales, market share, profit etc that will affect the objectives of the company
It is important to approach to achieve the strategic objective
It gives the way, time boundary, cost so it is very important
This gives the constraint of finance to achieve the goal
Indicates how the progress of plan will be monitored.
To match the consumer needs coca-cola company develops the marketing mix. Manly marketing mix gives the better knowledge about four major elements. Basically it called 4Ps framework marketing mix, now it extended to 7Ps. They are product, price, place, promotion, people, process, physical evidence. The Coca-Cola Company has using 7Ps framework to make decision. And some company has used 4Cs framework also. Effective marketing mix gives decision about targeted costumer groups and choice of costumer or needs of costumer at product or service level. The roles of marketing mix in decision making place of coca-cola company are as tools to give information about competitive advantage, well blended, corporate resources.
FIGURE OF EFFECTIVE MARKETING MIX p.19, f1.7
The coca-cola company directed by marketing mix that is clear performance differ from competitor so the company is single leader in beverage market. The marketing mix of coca-cola is well blended; the marketing strategy is well joined with strategy.
Even though the company has some weakness in term of product, if company give a look in product then it can perform better than present. This survey show powerade should develop more new flavours according to future market demand. Powerade should update its test and out look of the bottle. In addition powerade should consider dropping flavours that show weak sales in order to accommodate new flavours.
In effective marketing mix should have some characteristics the marketing mix should give decision. Which decision can address customer's needs, can exploit competitive advantage, and can match with company's strategy, and well blended with 4Ps or 7Ps or 4Cs framework. These things only cover by 7Ps framework so the 7Ps framework marketing mix is effective to coca-cola company.
2.2 Identifying mitigation strategies for high risk components of the plan of Coca-Cola
The introduction stages starts when products lunched in this period sales will be very slow, must of the organisation faced negative profit and high cost. There are some stages where organisation has to face high risk in innovation of new product. When the coca-cola company launched powerade the stages are: where high risk
product development stage
After passing these stages product will be in maturity stage where organisation make more profit and try to stay in this stage after this stage is decline stage which is also risk and here need to some force/change to stay in maturity stage.
The action plan, basically developing a very detailed list of to do thing where we included task, time and budget or cost framework with relating marketing mix the coca-cola company in estimate the budget and talks in marketing about activities. The company have decided the typical marketing expense to promote of Powerade. The areas of expense are marketing communication, market research, promotion, advertisement and public relations. The budget should response the key question which are arise from business mission, market audit, SWOT analysis, marketing objectives, strategies, decision implementation and finally control.
The action plan is control by financial capability of the organisation. Plan cannot go very far from their budget. Budget talks about resource allocation where includes the particular of income and expenditure mainly coca-cola company divides into tow parts that is income and expenditure. The coca-cola company's main income sources are investment, sales, share, interest, etc similarly in cost side there are two types of cost that is fixed and variable cost. Fixed cost remain always same in short-term and variable overhead are depends upon unit of production. Coca-cola Company forecast the range of income and expenditure on the basis of previous income and expenditure or coca-cola company make budget on the basis of past year. The main headings of variable cost are raw materials, labour, selling and distribution etc.
Marketing mix gives the core knowledge on four major elements product, price, place, promotion. Further more this framework inform about consumer's needs, how to exploit the competitive advantage it blend the core strategy with marketing mix, and it helps to match corporate resources. These all things help to make right decision to headed coca-cola company.
2.3 Producing marketing plan for Coca-Cola
Coca-cola Company is using the marketing mix as a tool of decision making. Marketing mix control to company it gives the information to the company whether marketing implication is in right direction or not the marketing mix of the powerade giving information to company about the powerade as a product performing well or it needs to change to change or modify in which place if performing well and where it should perform. The price set in it is reachable for customer or needs to change. What tools are using to promote it or what promotion tools are using by company like advertisement, offers, modification in shape and size, addition satisfied? And skilful people or staff, they can influence the organisation, physical evidence process where research it, physical product design which put great important in marketing mix of the powerade.
Budget can influence to the marketing plan of the company if company has enough budget then marketing plan can extend programme and if company is not strong economically then company should minimize the action. In other words marketing activities or plan, keep on tract by budget over the period. There is no hard and fast rule that your marketing budget should be limits. We can assume if you planning to lunch new product then you may increase budget figure in practice 10% of your expected gross sales in maximum. So every marketing plan will control by budget.
The marketing plan of powerade structure are executive summary current market situation, SWOT analysis objective and issues marketing strategy, action programmes budgets and controls incorporating to developed marketing plan for coca-cola.
3.1 Discussing how the plan support strategic objectives of Coca-Cola
The coca-cola company has strategic objective some of them are to refresh the world, to inspire moment of optimum, create value and make difference, achieve the sustainable quality growth, maintain weight action and decision within the customer, take place within customer. Bring the world's portfolio of quality beverage, create mutual enduring value within partners, maximized the profit, learn and fast moving productivity, maintain the winning culture, focus on market, work smart, etc. To gain these strategic objective marketing plan be the support programmes. The innovation of power is one of the brick of the strategic objectives. Powerade is innovative product which helping to keep satisfy customer and support by giving sports players. Now a day Powerade will concentrate on solidifying its position in the current market and aggressively targeting more casual athletes. Powerade focussing test as well which are helps to extent the market and maximize the profit. Similarly satisfy the customer's desire of water. The most important part of the market strategy is to vastly expand coverage take advantage economics of scale and use the channels of coca-cola. The coca-cola company can't go far because there are budget and some controlling components constrain. The budget word itself talks, use of limited resources for rational distribution.
*Within coca-cola company strategic plans are guided marketing plans. In marketing plans it has typical structure with respective purpose which is incorporated while developing marketing plan for coca-cola company. The proposes are: present a quick overview of the plan for quick management review, The marketing audit that presents background data on the market, product, competition, and distribution. The SWOT analysis presents company's main strength, weakness, and opportunities and threats facing. Defines the coca-cola company's objectives in the area like sales, market share, and profit which affect the company's objective issue, marketing strategy that presents the board marketing approach that will be use to achieve the plans of objective, action programme which specify the action plan of product Powerade and responsibilities, budget forecast the profit and loss and expected financial out comes from the plan. Control indicates the progress of the marketing plans of the Powerade and monitoring.
The marketing plans of coca-cola company guided by its strategic objective marketing plans focus on distribution side like sales, consumer, profit, market share/growth, these all things guides by strategic objectives. The strategic objective and marketing plan more like same but marketing plan act as support of strategic objective.
According to Jobber, there are some marketing structures. They are practiced in different company.
No marketing department:-In practice small company can't afford all department financially so owners of this type of organisation function as marketing department.
Functional organisation:-The small companies grow or importance of marketing realised, then this type company up great the sales as marketing department.
Product-based organisation:-In this type of organisation establish marketing department for focusing a specific single product/product, their key role is to promote the brand/product.
Matrix organisation:-this type of organisation use to produce wide rang of product to focusing diverse market the structure resembles a grid.
Market-centred organisation:-These types of organisation focus on market demand or they develop new product on the basis of costumer needs and requirement. For example coca-cola company is market centred company it producing product as costumer's test, preference feedback.
FIGURE 20.11 p 777
In initial stage of implementing new marketing plan of company there were many questions within the staff and they resist directly or indirectly. To solve the resistance the company use to use various tools, one of them is reward system. It can give positive impression in the success of marketing planning in short-term as well as long term. The coca-cola company using reward system as motivation tools to staff. When coca-cola lunched powerade it announced some incentives to promote the plan they are commission for the sales depart according to their performance, 7% bonus of profit to all staff, upgrading to best performer staff. These types of reward system helps to break resistance and run the plan smoothly with full support of all staff in short-term. And in long-term reward system help to coca-cola company to implement and meet the marketing goal as well as achieve strategic plan.
To implement the marketing plan successfully Wilson and Giligan introduced five point frameworks are very important and implacable for coca-cola company. Coca-cola Company has strategic linked short-run and long-run programme. These programmes are synergy with various element of marketing mix. Every segment is assessing appropriate criteria for performance. Resources are allocated rationally and with provision of review. Every product and decisions are interlinked with strategic marketing. These five points framework are helping to coca-cola company to be sensitive in consumer side, market side and to be conscious with risk
Kotler et al has prescribed process of measuring and evaluating of the marketing plans control is very useful to coca-cola company. Set goals talks about what coca-cola is heading. Measuring performance it means what is happing in performance in coca-cola. Evaluating is coca-cola doing well? Corrective action what coca-cola should need to do? These controlling tools help to focus the company to achieve the ultimate goals.
Jobber's concept is more concentred towards costumer's satisfaction it talks about day-to-day on going Marketing activities the coca-cola company is using following tools as controlling measure.
Customer satisfaction measurement:-To measure customer's satisfaction coca-cola company using interview method.
Sales and market share analysis:-The Company using over sales revenue to measure the sales performance and for market share it using comparison with its rival company.
Cost and profitability analysis:-the company using cost and revenue analysis as control measure.
(D.1-last) Assess the role of informationâ€¦â€¦â€¦â€¦â€¦â€¦â€¦..????
To implement the marketing plan of Pawerade successfully it is necessary to flow information top to down. So, coca-cola company used various ways to convey the massage, such as IT, meetings, seminars, notice board, etc. There are vital role of information system â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦..
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