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The United States From The Coca Cola Company Marketing Essay

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 bottling system continued to operate as independent, local businesses until the early 1980s when bottling franchises began to consolidate. In 1986, The Coca-Cola Company merged some of its company-owned operations with two large ownership groups that were for sale, the John T. Lupton franchises and BCI Holding Corporation's bottling holdings, to form Coca-Cola Enterprises Inc. (Coca-Cola Ent)

The Coca-Cola Company has taken seriously its commitment to market responsibly, across the global, across all advertising media and across all their beverages. Company has been a leader in the area of operations. Coca-cola is often thought to be produced and distributed around the world by a single company. Its portfolio consists of 3500 beverages being produced by a vibrant business system operation in more than 200 countries around the world. It is doing business in collaboration with 300 bottlers which helps to manufacture and distribute the products to the customers and consumers around the world.

Strategic Marketing Planning Process

Marketing Planning Benefits

Marketing objectives and strategies

Marketing is aesthetics that is followed by organisations in order to realize their goals or targets and make their product and service identifiable amongst the identical commodities. It deals with the long term objective of the business to gain competitive advantage and customer satisfaction. Marketing strategy deals with the changing conditions and surroundings where the organisation is going to perform the business activity while concerning the interests of their internal and external stakeholders.

In the words of Professor Mcdonald marketing is the combination of company’s capabilities and the wants of customer in order to achieve the objective of both parties. (Mcdonald (1))

Strategy is defined as extensive business activity in terms of marketing, which is commenced to facilitate the organisation to meet its marketing objective. Strategic marketing is the pathway to gain competitive advantage, to avail opportunities, carryout effective research and development to meet the market needs and allocation of resources for best utilisation. There is no definite strategy for a specific industry / sector or a market condition.

Every business faces market challenges that can influence the performance of the business down the road. These decisions are taken in anticipation of best possible outcomes. It is important to re-examine the market opportunities periodically, look into the strategy from the customer’s stance and adjust the findings in the strategic marketing plan. Pricing, distribution, promotion, advertisement and segmentation all includes in the strategic marketing plan. It also talks about market penetration, market share, budgeting, profitability analysis, macroeconomic issues, demographic changes, emerging technology and cultural proclivity.

Marketing Planning Process

(Tutor2U)

The Marketing Planning Process

A number of Market planning techniques are available but most appropriate and momentous one was introduced by Professor McDonald in 1995, which covers a variety of steps to reach triumphant strategic marketing plan. His Market planning process involves ten steps which are significant for an organisation to carryout analysis and establish a suitable future plan. These steps include:

Mission

Corporate objective

Marketing audit

Swot analysis

Assumptions

Marketing objectives and strategies

Estimate expected results

Identify expected plans and mixes

Budget

1st year detailed implementation programme (Detailed action plan)

Above mentioned ten steps are divided into four stages:

Stage 1 – Goal setting

Mission

Corporate objective

Stage 2 –Situation review

Marketing audit

SWOT analysis

Assumptions

Stage 3 – Strategy formulation

Marketing objectives and strategies

Estimate expected results

Identify expected plans and mixes

Stage 4 – Resource allocation and monitoring

Budget

1st year detailed implementation programme (Detailed action plan)

(Mcdonald)

Activities in the MPP

Activities involve in each stage

Stage 1 – Goal setting

It involves following activities:

Embark on a research to comprehend the strategic objective and aims of the organisation

Arrange an congregation with high level /senior executives about key areas of operations

Obtain clear agreement on the strategic objective of the organisation

Settle on financial and non financial facets of the organisation

Define all key activities undertaken within the organisation like operational support and product or service

Aim for return on investment (ROI)

Targets for operating profit

Increase the value and earnings per share

Position targets for Achievement of market share

Evaluation of objectives expediency

Coordinate an agreement on key points of the meeting intentions

Stage 2 –Situation review

Second stage of the marketing planning process involves the following:

Meeting of senior executives and the operational management

Involves tools and audits for internal and external analysis (SWOT analysis)

Debate on future plan

Review of existing plan

Current objectives of marketing

In practice marketing strategies

Application of marketing mix

Controls and effectiveness of existing marketing planning process

Achievement of smart objectives

Ability of organisation to control its planning operations

Motivate workforce to achieve common goals

Focus on all operational functions of organisation

Internal resource examination(Five Ms – Men (labour), Money, Machinery, Minutes (Time and Materials (factors of production)

Organisation of marketing team

Steps to make marketing team efficient and effective

Efficiency and effectiveness in consumer relationship management

Accuracy and originality of the market info

Profitability of product portfolio

Pricing criteria

Efficiency and effectiveness of distribution channel

Consumer needs and how to satisfy them

Consumer behaviour and their decision process

Consumer perception about brand and their loyalty towards brand

Identification of competitors and determination of their level of profitability

Strengths and weaknesses of competitors

Plans and strategies of competitors

Analyse the cultural environment and nature

Standard and average level of education of the target market

Customers beliefs and their ethnicity

Level of adoption of technology and information system e.g., media

Rules and regulations of the targeted territory

(Marketing Audit)

Stage 3 – Strategy formulation

This stage starts from the sixth stage of the marketing planning process and covers: marketing objectives and strategies, estimation of expected results and identification of alternatives.

The step six involves two terminologies with different meanings and objects: 1. Objectives and 2. Strategies.

Market objective is an avowal which portray that what is to be pulled off by the marketing activity of the business entity, where as marketing strategy is the mean by which a marketing objective is achieved. (Marketing planning phase three)

This stage involves the following:

Workshop between senior management and marketing department

Estimate the target revenue, profit and market share in the light of organisational mission

Concerns of long term profitability in a broad spectrum

Accurately explaining the objective for the foremost result areas

Address sales volume, geographic expansion and service / deal offering expansion

Relevance of the activity with the corporate mission and objective

Focus on unambiguous and exact ambitions

Ambitions must be calculable

Ambitions must be time bound

Ambitions must challenging and implementable transversely in the organisation

Strictly focus on the products and services organisation is involved in

Keeping the focus on:

Selling existing product in existing markets

Enter new markets with existing products

Develop new product / services for existing market

Develop new ways to supply new markets

Make use of judgement, similar experience, field-tests to check the viability of objectives and strategies in term of market share, expenditure and profitability

Stage 4 – Resource allocation and monitoring

The final stage of the marketing planning process involves:

Activity carried out by senior marketing department officials and their team

Make approximate estimation of costs

If not feasibility take alternative strategy for estimation until came out with a practical solution

Estimated quantifiable figures for at least 3 years however a detailed implementation of the plan for first year

Helpful in estimating realistic budget and parallel to the marketing objective

Detailed customer plan, advertising plan, product plan in lined with the objectives and strategies

(McDonald 2)

After a detailed discussion and explanation of the marketing planning process it is easy to understand the concept and its application on an organisation. For this purpose Coca cola has been chosen to carry out the implementation of marketing planning process. The chosen organisation is from beverage industry, a world’s eminent soft drink manufactures. Subsequent composition covers the internal and external analysis for the choose organisation.

Following description can help to understand the terms and purpose involved in each step of Marketing planning process:

Mission

Mission explains consequential purpose and direction of the organisations business. It explains the long term purpose of the organisation related to its existence, nature of business and the customer it is planning to serve and satisfy. Mission of Coca-Cola is:

‘Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions.

To refresh the world...

To inspire moments of optimism and happiness...

To create value and make a difference. ‘

(Cocola Company Mission,Vision and values)

Corporate objective

Objective is about establishment of corporate goal. It explains the requirement and outcome connected to a time frame and related things like size and type of organisation. It also defines its focus of operations and the level of success which includes: profits, brand recognition, efficiency, environment, long term survival, market share, social issues, turnover, customer satisfaction and brand loyalty (Mind map). Following are the corporate objectives of Coca-Cola:

Profit: Maximizing return to shareowners while being mindful of our overall responsibilities.

People: Being a great place to work where people are inspired to be the best they can be.

Portfolio: Bringing to the world a portfolio of beverage brands that anticipate and satisfy peoples’ desires and needs.

Partners: Nurturing a winning network of partners and building mutual loyalty.

Planet: Being a responsible global citizen that makes a difference.

(Coca Cola Mission vision and values)

Marketing audit

Marketing audit is the fundamental part of the marketing planning process. It is the process of gathering information for market planning not only at start of the process but at the decided points during the plan implementation process. It collects the sequence to understand the business in the market, analyse the product or service, involved resources, methods of distribution, market share and competitors, hence layering internal and external manipulators of the planning process.

External Audit

The external audit consists of three parts

Economic environment

Competitive environment

Market environment.

Economic environment

External audit considers the economic factors which can influence the performance of the organization indirectly which can be political factors such as government actions, new taxation policies etc. In economic factors the rate of inflation and rate of economic growth can influence the organization performance indirectly. Social and cultural factors can also leave an impact on organization growth as people life style changes time to time. Technology is an important factor which changes time to time and an organization must keep the technology and approach up to date to stay remains in the market as well in the competition. Legal laws can influence the performance as government can make new laws and environment laws. So as an organization we must keep all these things in mind and should make strategy according to these changing factors.

Competitive environment

Competitive environment can also affect the organization’s performance such as:

Threats of new entrants

Threat of new substitute products

Bargaining power of supplier

Bargaining power of buyer

Market trends

So as an organization Coca-Cola have to make strategies according to all above situations and try to compete and lead in the market by offering new style products, competitive products, keep an eye what the competitors are offering and making strategies according to those offer. For this the organization will take surveys that what is the current situation of the market, what customer’s demands and what organization is offering.

Market environment

While doing marketing audit organization must keep in mind the things which can affect its performance such as:

Products that organization is offering and competitors are offering

Industry practices

Market growth and trends

Internal audit

In internal audit organization looks at the strengths such as:

Total number of sales

Market share

Profit analysis / ratios

Market information and research

The internal audit of the organization is also help full to know about the current situation of the organization in the market and opportunities that can be beneficial for the organization.

Market assumptions

Market assumptions are a very crucial part of the planning process. It comes after the planning to deal with the uncertainty and surprising outcomes. It is the anticipation of strategic probable factors which can affect success of the plan

Market analysis

Market analysis talks about the target market of the business or the market where the organisation is conducting its dealing. It helps to find out size, structure and growth if the market.

SWOT analysis

Swot analysis is a part of strategic planning process. It is used to evaluate strengths, weaknesses, opportunities and threats involved in a business. SWOT is an analytical tool which examines the interface between existing business, proposed change and external market place. Evaluation of Strengths and weaknesses covers the internal origin of the organisation while opportunities and threats cover external one.

Marketing objectives and strategies

It helps to establish the marketing aim or function, concurrent the corporate objective of the business. Every organization wants to make more profit by more sales. Thus marketing objectives must be clear, measurable, and achievable. The marketing strategies should response in a right way to achieve the objective if not no organization can achieve its objectives.

Estimate expected results

Estimation of likely result is about making a forecast of what will be achieve through following the prepared plan. Following this activity helps in choosing a right option if action plan has some qualms.

An organization can estimate the current performance by its total turnover, sales or revenue. Or by comparing the results with the previous year results. There is a lot of methods to measure the current performance of the organization such as by comparing organization’s revenue or profit with the competitors, number of customers, market share or market growth.

Identify expected plans and mixes

During the process of planning managers and planning team members came out with a number of options. It is important to choose the option which fits the goal most. These alternative strategies and their analysis will be listed at the end of the marketing plan. If the targets or the situation regarding market environment changes the strategic planners divert the plan of action towards the contingency.

Alternative plan may possibly:

Establish the goals based on measurable factors and short term.

Assess the short term and long term economic condition and plan according to the condition.

Determine the customers need and wants and fulfil them.

The alternate mixing will be the price mixing in which it will use generic pricing, offering the products and services at low rates and capturing more customers and market share.

Marketing budget

It is a detail budget for the coming year or the Performa budget document for next two to three years. All marketing plans involve thorough cost calculations. It is crucial to ensure that every penny spent will bring a higher return to the business.

This budget is related with the marketing budget which includes public relations, websites, and advertising. All large organizations set a large amount of budget to promote their products so Cocacola is also spending a lot of money to make its campaigns successful.

Detailed action plan

Action plan is the detailed implementation of plan for a whole one year or more. It is about putting the plan in to operation, scheming the action programme, assigning responsibilities for execution.

The External Marketing Environment and Marketing Audit

External Audit

In the macro environment there are some forces which can influence the organization however all the external forces and factors are out of control of the organization. These factors are from the external environment covered by PESTEL analysis.

Political factors

Economic factors

Socio cultural factors

Technological factors

Environmental factors

Legal factors

In the macro environment all these factors can influence the organization directly or indirectly, political factors can influence the current situation of the country where Coca-Cola is doing business, economic factors like economy fall down or recession can influence the organization performance and it happened in the past few years. Technological factor is also important as organization must keep his technology update time to time to compete with their competitors and Coca-Cola have latest technology and this is one main reason that they are market leader by offering high quality products to its customers. Environmental factors are also important like earth quake, flood situation can hit the region where organization is doing business and legal factors, new laws by the government imposed, can influence the performance of the organization.

The macro environment also includes changes like Threats of new entrants, bargaining power of suppliers, bargaining power of buyers, Threat of substitute products. (Porter’s 5 forces)

The internal environment is also an important factor which can influence the organization performance and changes can happen inside the organization. The internal environment includes Men, Money, Machinery, Materials, and Markets.

Market Size/Share 2010

(Wikinvest)

From above pie chart it can be observed that Coca-Cola stands as market leader with 43% of market share, whereas Pepsi is the follower with 31% of share. Cadbury is at third number with 18% of market share. Rest of the 8% of market is shared by small players.

Market Growth

Coca-Cola Company slightly increased its lead over rival Pepsi-Cola Co. in 2002, It is due to the successful launch of Vanilla Coke and the growth of Diet Coke, according to U.S. soft drink industry rankings released. Coke gained 0.6 percentage points in market share and increased its case volume by 2.1 percent, according to Beverage Digest/Maxwell, a New York-based industry newsletter and data service. Coca-Cola captured a larger share of the market even though its Coke Classic brand fell 0.6 percentage points in market share.

Coca-Cola dominates around 43 percent of the soft drink market, but saw its market share drop between 1999 and 2001. With the latest gains, it's only 0.2 percentage points away from where it stood in 1998 at 44.5. Pepsi-Cola lost 0.2 percentage points in market share. The No. 2 company commands 31 percent of the soft drink market. The Dr. Pepper/Seven Up unit of Cadbury Schweppes, the third-largest soft drink group, fell 0.6 percentage points in market share to 18.0 percent.

Overall, the carbonated soft drink industry posted modest growth, with case volume up 0.8 percent. Meanwhile, bottled water alone has grown 30 percent in the last fewyears.

(Findarticle, 2010)

Summarised External influences of Coca-cola

Analysis

There are a number of issues relating to this incident that demonstrate the ethical and moral issues surrounding business.

Coca-Cola has become one of the most popular drink in the cola market

Coca-Cola's business in market leads to a wide range of direct and indirect employment related to the business as a result of $1 billion (£520 million) worth of investment by the company.

Coca-Cola claims that its activities are entirely legal and global

(Bized External Influences, 2003)

PESTLE analysis of Coca-Cola

The Coca Cola Company and other organizations have their own weaknesses and strengths that can both affect the future performance of their respective business. Analyzing the future constraints is an advantage for the companies since they can identify the possible factors that tend to leave an impact on their business.

PESTLE analysis is a popular method that focuses in the external factors of the business and the environment where it operates. PESTLE stands for Political, Economic, Sociological, Technological, Legal, and Environmental. All of them examine the changes in the marketplace.

Political Analysis

Political analysis examines the current and potential influences from political pressures. The non-alcoholic beverages falls in the category under the FDA and the government of most countries plays a role within the operation of manufacturing these products. In terms of regulations, the governments have the power to set potential fines for the companies that did not meet their standard law requirement. 

The changes in laws and regulations, such as accounting standards, taxation requirements and environmental laws and foreign jurisdictions might affect the book of the company as well as their entry in foreign countries. Other than that, the changes in the nature of business as non-alcoholic beverages can gain competitive product and pricing pressures and the ability to improve or maintain the share in sales in global market as a result of action by competitors.

The political conditions of the realms are also basis of the study, especially in internal markets and other governmental changes that affects the ability to penetrate the developing and emerging markets that involves the political and economic conditions. However, Coca Cola continuously monitoring the policies and regulations set by the government.

Economic Analysis

Economic analysis examines the local, national and world economy impact which is also includes the issue of recession and inflation rates. The non-alcoholic beverage industry has high sales in countries outside the U.S. According to the Standard and Poor's Industry surveys, "For major soft drink companies, there has been economic improvement in many major international markets, such as Japan, Brazil, and Germany." These markets will continue to play a major role in the success and stable growth for a majority of the non-alcoholic beverage industry. There is a low growth in the market for carbonated drinks, especially in Coca Cola’s main market, North America. The market growth recorded at only 1% in 2004 for North America.

Sociological Analysis

This analyzes the ways in which changes in society affect the organization such as changing in lifestyles and attitudes of the market.  Consumers from the ages of 37 to 55 are also increasingly concerned with nutrition. There is a large population of the age range known as the baby boomers. Since many are reaching an older age in life they are becoming more concerned with increasing their longevity. This will continue to affect the non-alcoholic beverage industry by increasing the demand overall and in the healthier beverages. The demand for carbonated drinks decreases and this pulled down the revenues of Coca Cola.

Technological Analysis

Technology is the main focus of the analysis where the introduction and the emerging technological techniques are valued. This creates opportunities for new products and product improvements in terms of marketing and production. As the technology advances, new products are introduced into the market. The advancement in technology has led to the creation of cherry coke in 1985 but consumers still prefers the traditional taste of the original coke.  

 Environmental Analysis

Environmental analysis examines the local, national and world environmental issues. According to the data of the Coca Cola Company, all of the facilities are strictly monitored according to the environmental laws imposed by the government  

Legal Analysis

Legal aspect focuses on the effect of the national and world legislation. The Coca Cola Company receives all the rights applicable in the nature of their business and every inventions and product developments are always going into the patented process.

(Ivythesis, 2009)

3.2. Internal audit

SWOT analysis of Coca cola

Swot analysis is a part of strategic planning process. It is used to evaluate strengths, weaknesses, opportunities and threats involved in a business. SWOT is an analytical tool which examines the interface between existing business, proposed change and external market place. Evaluation of Strengths and weaknesses covers the internal origin of the organisation while opportunities and threats cover external one.

Strengths

Strong company – exceptionally familiar

Existence in 200 territories

With about 400 drink brands, including 4 of the top five sellers

Popularity-well known 36% of the cola’s market share

Availability-strong distribution channel

Financial strength $23 billion company

Customer loyalty

International existence

Weakness

Less popularity of other Coca cola’s brands e.g. Odwala a natural juice product – no or less advertisement

Mostly unknown and scarcely available in the market

Word of mouth

Health issues – negative publicity in September 2006 in India about products containing pesticide residues

(US Water News)

Low performance in North America, where it generates 30% of the revenues

Threats

Increasing awareness regarding health issues

Legal issues

Strong competitors e.g., Pepsi

Global recession –declining GDP-lowering per capita income- low purchasing power of individuals

Growing rate of unemployment affecting purchasing power

High rate of inflation resulting in increased product price

Lower exchange results in low income for foreign companies

Changing labour laws can result in increased workers benefits-low operating profits

New product regulations

Development of new technology results in changing industry practice

Increased health consciousness can result in delayed deliveries

Opportunities

Following acquisition strategy e.g. Kerry Beverages in 2006, effective for growth

Brand recognition affecting competitive position

Advertise less popular brands

Ability to buy out competitors

Probability of more/ other brand recognition

Bottling system of Coca cola is an industry edge

International presence enables to penetrate in lucrative markets and diversity

Internal strategic objective of Coca cola

Accelerate carbonated soft drink growth

Broaden the family of product wherever appropriate e.g bottled water, tea, coffee, juices and energy drinks

Grow system profitability and capability together with the bottlers

Build and increase retail business

Invest intelligently in market growth

Drive efficiency and cost effectiveness by using technology and large scale production to control costs

Enabling people to achieve extraordinary results everyday

(Market audit Cocacola)

Sales Data

Sales and income data, in millions

2005

2006

2007

2008

2009

Net sales

$23,104

$24,088

$28,857

$31,944

$30,990

Net income (profits)

$4,872

$5,080

$5,981

$5,807

$6,824

Units sold, in billions

20.6

21.4

22.7

23.7

24.4

Sales data indicates that over the past five years Coca-cola has gained in terms of financial figures. Its number of units, figures of sales revenues and net income all indicates incremental trend.

Customer Satisfaction

Regarding the soft drink category, Coca-Cola computed a score of 82 on the ACSI 100-point scale, a 2 percent decline from Q3 2005's score. Despite Coca-Cola's skid, 82 is still a solid score, but not enough to maintain the top sector slot. PepsiCo (up from Q3 2005's 82 to Q3 2006's 86) and Cadbury Schweppes (up from Q3 2005's 83 to Q3 2006's 86) trumped the beverage maker to tie for the highest soft drink satisfaction score. The ACSI gap between Coca-Cola and Pepsi has never been greater, according to Claes Fornell, a professor and head of ACSI at the University of Michigan. "Pepsi has made Diet Pepsi its flagship product; they have really doubled marketing expenses," he says. He adds that Pepsi has "put more resources on product innovation and they've also stopped relying as much as they used to on price promotion and that usually helps." Overall, the soft drinks category secured an aggregate score of 84, up 1.2 percent from Q3 2005, making it one of the highest scoring industries in ACSI, according to Fornell.

(Bailor. C, 2006)

Marketing budget

Coca-Cola worldwide CEO E. Neville Isdell on 11th November 2004 announced that the company will increase its global marketing expenditures by $350-400 million in 2005 and successive years.

According to the proposal most of that money will be spent outside America in high-growth markets such as Brazil, China, India and Russia, he said.

(Sampey. K, 2004)

NEW Strategic Options

Market Penetration Strategy

Strategy Option

A pricing strategy in which a retailer seeks to achieve large revenues in the form of upfront and backend commissions by setting compatible prices and selling a high unit volume. On the other side different offers on their products directly to the customers. Coca cola have used this strategy in past few years when Pepsi and its rivals follow it.

Probable Outcome

When competitors of Coca-Cola reduce prices of their business in the market, a large number of customers diversify and changed their choice. Then Coca-Cola used market penetration strategy and still using this strategy. In the result Coca-Cola is again capturing more market share and increasing their number of customer. In future Coca-Cola will be able to capture further number of customers by using this strategy.

Advantages

Increased market share

Increased profitability

High market growth

Disadvantages

May loose customer by decreasing their prices as some customers are status conscious

Decrease in brand loyalty

Rapid change in prices according to the competitors price offering

Market leadership Strategy

Strategy Option

It is a strategy of a company which is a market leader and wants to maintain a dominant market share or to keep its reputation as an innovator.

Coca-Cola is the market leader by having more market share and a large number of customers by offering different product offerings with innovation.

Probable Outcome

Coca-Cola always offer something new to their customer that is the reason it is having large number of customers and leading the market. The only need is to target the niche market, if Coca-Cola do so it will be able to make more number of customers.

Advantages

Innovative approach used

New product development

More customers

Disadvantages

Have to introduce more offers according to competitors offers

More resources required

Have to compete with all competitors, with market challenger, market follower, and niche marketer.

Market Follower strategy

Strategy Option

A strategy of a company which does not directly challenge the market leaders, but attempts to benefit from their innovations and gain a profitable corner of the market.

Probable Outcome

If Coca-Cola adopts this strategy it will greatly reduce expenditure on research and development. In this way organization can save its cost on R&D.

Advantages

Cost saving on R&D

Copying idea’s from other

Easy to stay in competition and follow the market trends

Disadvantages

No innovation

No research

Difficult to lead the market as market leader

Recommended Approach

Market leadership strategy is best in business as an organization one can best convince people that they have a better product, taste and service. Improvements are always been made for increased customer satisfaction. There will be more research for capturing more areas / market segments. Procedures / bottlers must be fast and organization must work in innovative environment thus market leadership strategy is best in business as one learns better in competitive environment and always fights to remain market leader. Coca-Cola should divide its task towards the approach in five phases. Each phase will consist of at least one year.

In the first year it should carry out a detailed research about prevailing market situation and the reason of drop of customer satisfaction in comparison with competitors. It will help to find out the tough areas which Coca-cola is forced to face by its competitors. Try to locate markets segments which are ignored or which are given less priority in order to increase market share. Plan to launch strong media campaign to increase mind share.

In second phase it should compile the research findings and prepare a detailed action plan. Plan must focus on the prospective threats which a market leader can face in a competitive environment. Allocate /organize required funds for the purpose.

Third phase will be about detailed implementation of plan of action keeping in view its contingency just for shelter.

Fourth and fifth should be about periodic review of action plan. Make adjustments where necessary and make certain that the outcomes are as per the plan.

Justify selection

Organization will become more innovative, new product development occurs in the organization and by offering new products and unique services the organization not only stay in business but also earn a large amount of profit and number of customers as well.

Reasons for rejecting the others

Other approaches like market follower and niche marketing cannot guide the organization to its best run through, research and development process will be slow, while market leader plays a vital role in organization’s employees learning system and helps to generate new innovative ideas. Leader always take bold steps rather acts as follower.

APPENDIX


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