This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.
Introduction: coca-cola is the most familiar product in the world, and is one of the largest selling soft drink from the past. Coca-cola was invented on 8th may 1886 by Dr John Stith Pemberton in Georgia and the brand was owned in 1889 by Asa Candler who had made most of his money by selling coca cola. Coca-cola was introduced as a soda fountain beverage in the beginning-made by mixing coca-cola syrup with carbonate water at Jacob's pharmacy, Atlanta. At present Coca-cola provides about 400 brands in over nearly 200 countries that make coca-cola the world's largest beverage company. In a survey of 2001 coca-cola was the 41st on the list of the 100 strongest economic entities. There are some coca-cola brands given below:
Kia ora and etc
Reason for choosing coca-cola:
Overall view: The Coca-Cola Company is one of the successful organizations in all over the world. The Coca-Cola Company has survived and developed day by day in an instable market because of its marketing influence, originality and efficiency. In recent years coca-cola becomes a part of human body. The Coca-Cola Company and more than 300 worldwide bottling partners work together as the Coca-Cola system to deliver daily refreshment and drive their global success. Coca-cola has live positively assurance attitude to make a encouraging difference in the world by redesigning the way they work and live so sustainability is a part of everything they do.
Work as a global team: Coca Cola Company work as a global team, and they focus on two main assets its people and brand which makes coca cola working so special. Coca cola company want that their workers should feel satisfaction in their work. The people of coca cola work as a combined team, which has skill, talent, experience, passion and knowledge that make coca cola a successful organization.
Innovation: innovation is a heart of coca cola working process, and makes an effective connection with customers around the world. Innovation is a driving force behind the success of coca cola's more than 400 brands and work as a inspiration to the staff.
Quality: coca cola focus on quality than money, which makes coca cola number one company among the beverage companies. Product quality is a cornerstone of coca cola Company in everything that they do. The main business objective of the company is quality.
Reputation: the coca cola company is one of the reputed organizations around the world. Coca cola is a well known organization in the world. Coca Cola Company has a faith of customers on them.
Marketing is an essential aspect of entire business strategy of coca cola. Coca cola doest not believe on just making the advertisement or websites, it believes to do what they say to their customers as well. Coca cola makes a marketing plan which helps the organization to achieve their future goals more efficiently and effectively.
Planning principles of coca cola:
Competitor awareness: competitor awareness means to gain knowledge about the competitors. Evaluate the other organizations that what is their marketing strategy, what they are doing at presently and their future plans. After gathering the information or knowledge about company's competitors, then company makes a marketing strategy which must be better than their competitors. The main method of be successful from other companies is to know the competitors well and make an effective strategic plan.
Taste of customer: the achievement of marketing strategy is totally depends upon customers. To make an effective and valuable market strategy it is necessary to understand the needs of the customers. Firstly the organization has to know that who r the customers, what are their needs, how can they attracted, how will they happy, and then the organization make a market strategy to fulfill these customer needs or requirements.
Use of professionals: the staff should be well experienced, skilled and qualified. It is an important principle of planning. According to the requirements of the task the right kind of peoples should be used, so that they can give their best to their jobs.
Economic and political conditions: before making any plans the organization keeps in mind the political rules and regulations. The strategy should be changed according to the rules. Economic conditions like boom or recession in market should be in mind see the best time for investment before investing.
Final testing: when a market plan or strategy gets ready then there is a need for organization to test and implement the plan. When the plan is tested properly then it can be present to end user
Planning process of coca cola:
Setting target: the main and initial process of planning is to set goals, targets or objectives, and to see what the vision of organization is. Determination of the time and resources to get these goals. To consider at present what the organization is, and what want to be.
Investigation of resources: the next step of planning process is to investigate the resources, that means to achieve the organization's goal what resources are needed, what resources at presently the organization have and which do not have, how to use these resources effectively, what kind of work should be given to what kind of person.
Model design: after investigation the next important step is designing. The design should made by a group of professionals, who have the appropriate knowledge about the targets of the organization and have the image of customer needs in their minds. The methods should be used which are effective and appropriate for generating output.
Implement the design: after designing a model there is a need to implement this model design for this the resources work on the design to get the targets. A calculated time is given to workers for completing task with the needed resources like machines, raw materials etc.
Design testing: when the implementation is done there is a need of testing, in which the final output is checked whether the output is same as the company expected according to their goals or not. Testing process helps in discover errors and to correct them.
Post implementation: after testing if there are any errors occur, then the errors are corrected final testing. After final testing the implementation is done again.
Response: after post implementation when the plan is fully completed the there is a need to get feedbacks from the stakeholder of the company or customers to check whether the plan is successful or not.
Framework: framework is a border line in which an organization work for implement and construct strategies.
Analyze the scope of products
Improvements to develop the strategy
Implementation of strategy
Monitoring and review
Tools and techniques: there are many tools and techniques which are used to produce a market plan. Some of these are pestle analysis, SWOT analysis, strategic business unit, BGC matrix model, portal five forces model etc.
SWOT analysis: the SWOT stands for S- strength, W- weakness, o- opportunities, T- threats. It is used for auditing a company and its atmosphere. In SWOT strength and weakness are internal factors and opportunity and threats are external.
Advantages of SWOT analysis: it helps the organization to examine their strength and weaknesses, so organization can take the advantages of their strengths and can defend alongside weaknesses.
Disadvantages of SWOT analysis: the list of strengths, weaknesses, opportunities and threats is very simple and not seriously evaluated.
S- strength: strength means exclusivity of company, which makes company unique from others.
Coca cola is a strong company, in 200 nations coca cola sells around 400 products.
Coca cola has connection with Odwalla(natural juice company) brand, so natural juice making is a strength of coca cola
Organic products are becoming popular and coca cola is the only well known company who is making organic products.
The customers of coca cola have big trust on its products, coca cola has brand reliability.
Coca cola follows the responsible marketing technique.
Coca cola is one of the best familiar brands.
W-weaknesses: weaknesses mean poor technology, bad planning, and poor management etc of an organization.
Coca cola never made an organic product; they have only ties with organic company Odwalla.
They do not have material or resources to make organic products.
The sales of coca cola can be decreased, if the new organic juice or soda strikes.
Coca cola faces a harmful publicity in India during September 2006
O-opportunity: it means how an organization can enlarge its shares and how the production can be expanded.
From the period of one year coca cola is starting to follow inorganic growth path.
The bottled water part of beverages is growing very fast, so coca cola is trying to build a strong position in this segment.
The coca cola company is thinking to gain benefits from expanding Hispanic population in the US.
T-threats: threat means any political battle, price fighting, competition, internal conflicts etc of organization.
Coca cola is competing with nonalcoholic beverage organizations. The competitors of coca cola is Cadbury, nestle, Schweppes, craft foods and group DENONE. Extreme competition can make effect on coca cola's revenue growth rate and market shares.
Coca cola makes most of its revenue by selling syrups and concentrates to bottling partners. So dependence like this on other parties increases the company risks.
The consumption of carbonated beverages is decreasing in US. So coca cola is one of the leading companies which are selling carbonated beverages, and with the decrease in the consumption of carbonated beverages coca cola's revenue can be affected.
PEST analysis: PEST means political, economic, social, and technological. It is a strategic planning tool to assess the impact of these four factors on a project.
The main advantage of PEST analysis is that it gives a better understanding of business environment and helps the organization to find the opportunities and make use of them, and the only cost to do this is time.
The disadvantage of PEST is the speedy rate of change in society makes it more and more difficult to forecast developments that can have an effect on an organization in the future.
Political: this factor includes political area like employment laws, tariffs, political stability, tax policy etc.
Economic: this includes interest rates, exchange rates, economic development etc.
Social: this includes population growth, careers attitudes, cultural aspects, education of people etc.
Technological: it includes factors like automation growth, technology changes and development etc.
Marketing audit: marketing audit is a broad, organized and episodic evaluation of marketing activities of an organization. It is effective for an organization to see purposes of plan and strategies and improvements needed.
The benefit of marketing audit is improve the effectiveness of strategies and gives a broad picture of what and how the organization is doing.
A stakeholder is that person, group or organization who has direct or indirect stake in a company or organization, and can affect or affected by the organization's policies, actions or objectives. In a business or organization there are two types of stakeholders, which are internal and external.
Major stakeholders of coca-cola:
Employees: employees are major stakeholders of coca cola. Coca cola has 92,400 worldwide employees. The employees of coca cola have qualities like skill, knowledge, motivation, encourage, force to work, handling of hard situations. Coca cola always tried to make their employees feel happy and give them a suitable environment for working. The workers of coca cola are motivated to turn plans into procedures.
Customers: coca cola serving to 1.6 billion customers daily. Coca cola is consumer's first choice because they give high quality on reasonable costs which makes the customers happy. The coca cola company has strong relationship with customers, and for make this relationship stronger they provide discounts and best values of the products to customers.
Shareholders: coca cola is a reputed and well known organization in the world, which makes it the first choice for shareholders to invest their money in it. Coca cola promises shareholders to make long term relations, and to give best value of their services. Coca cola always pleased to shareowners that they have an interest in their company.
Participation of stakeholders in development of strategy:
It is impossible for an organization to make an excellent strategy without the involvement of stakeholders. Participation of stakeholders is very important.
Customer's involvement: customer's feedback is necessary for making an efficient strategy. The need of customers is high quality, low prices so the views of customers are very important, and this can be done by costumer care services, surveys, meetings etc.
Employee participation: views and ideas of staff are very important for developing a strategy in an organization. The strategy can only be effective if the workers could understand, adopt and able to implement the strategy. To collect the views and ideas of the staff, a team should be made by selecting people from various fields, and then a strategy can be made by taking their ideas, views and suggestions.
Shareholder's view: it is really important to take shareholder's views and ideas to develop a strategy. Shareholders need superior profits on their investments so the views and ideas from them are very effective. So for this purposes meeting should be done with shareholders to collect their useful views and ideas.
General and marketing strategic options:
Cost reduction strategy: in this option the organizations can reduce the prices of products, which can be lower than their competitor; but company should reduce the cost on the basis of economical conditions. Like 99 pens shops, Primark companies are doing these days.
Advantages: easy way to attract customers and do better than competitors. Like Primark is doing better than next.
Disadvantages: the brand value can be decrease and bad affect on customer relation.
Unique strategy: the purpose of this option is to do something different. For this firstly examine the important needs of the customers and then do something unique on these needs which should be different from the competitors. Like Tesco offers good quality than competitors like Asda.
Advantage: the increase in sales, and better reputation as Tesco has.
Disadvantages: the expectations of the customers will be high, and the organization must always need to be good at expectation.
Market expansion: in this option the organization can launch a new product. Like coca cola is thinking to produce organic beverages.
Advantage: increase in profit.
Disadvantage: Risk in liking of the customers, whether they accept the product or not.
Mission statement: a mission is a strategy that has to do with full of efforts to achieve a vision by an organization. By mission statement it is easy to understand the purpose of an organization to shareholders and investors, who are going to invest in that organization. A mission statement of an organization tells the reader about the organization that what it stands for.
Vision statement: a vision is a broad image of the future that what the future should be, and the statement is focused on tomorrow. The vision statement has details of an organization's future, inspiration of organization, future plans, aims and objectives. Vision statement should be clear, positive and inspirational, not too long. The vision statement shows milestones that an organization desires to achieve.
Roles of mission and vision statement:
The message can be delivered to stakeholders effortlessly.
Helps to raise the responsibility of the staff for the organization.
By the appearance of the overview people can be persuaded.
Helps to develop the future goal and objective of organization.
Roles of mission and vision statement
Mission of coca-cola: the first step of coca-cola starts with its mission. In mission statement coca-cola company declares its purpose as:
'To encourage instant of cheerfulness and brightness, create value and make a difference and refresh the world'. Coca cola is focusing on their mission very well.
Vision statement of coca-cola: the vision of coca-cola guides every aspect of business by describing the needs to achieve quality growth. The vision statement of coca-cola is:
'To people be a perfect place to work, where people are motivated to give there best and foster an appealing network of suppliers and customers, together to create common, durable values. Be a responsible civilian, give the world a collection of quality products, be an effective organization, capitalize on long term returns'. Coca cola is working hard to follow the organization's vision path.
Culture objectives of coca cola: coca-cola has a unique culture, which is based on passion and the member of the company has the ability to change this passion into action.
Work together as a team; make an enjoyable environment for working.
Build relationships which are helpful for success.
Respect the cast, language, dressing etc of any other culture or region.
Ethical objectives of coca-cola:
To perform with honesty.
Both owners and workers follow the rules and laws of the organization and government.
Towards work and responsibilities create the moral values between staff.
To act in accordance with the code.
To be responsible.
Environmental objectives of coca cola:
To make the environment management an internal part of their functions.
To identify and minimize the bad environmental impacts.
Reuse or recycle the organizational wastage to prevent environmental pollution.
Social objectives of coca cola: coca cola has many foundations like coca cola foundation and other 18 regional and local foundations.
Provide education to children.
To provide living sources for society.
Provide job opportunities to people
To youth provide sports training.
Business objectives of coca cola:
To take a reputed position in market.
Customer satisfaction by good quality
Satisfaction of workers by reasonable wages.
To make happy shareholders by providing good returns
These objectives of coca cola are affected by current business and environmental changes. There are many other beverage organizations introducing new beverage products in the market that are affecting the objectives of coca cola. Coca cola need to change certain business environmental and ethical objectives because of competition. As government policies changes these days, the coca cola following these policies to take advantages in future. Due to recession period the company is changing its business objectives to survive.
Current changes in the market environment:
Economic changes: at present time the economic environment of market is changing day by day due to recession period. The effect of this slump in the market is harming coca cola as well like other organizations. So profit of company goes down because of slowdown in market.
Customer needs: the taste of customers changing day by day and it is necessary for coca cola to build new strategies, so coca cola is changing their marketing strategies according to customer taste.
Market competition: the competition in market is rising very rapidly. The competitors of coca cola are giving a hard competition to the organization. So coca cola needs to do better than their competitors like Pepsi, Dr.paper etc.
Technology changes: these days this a world of information technology, so there is the development of technology is increasing very speedily. So coca cola is adopting new technology methods.
Responses of coca cola to these changes:
Coca cola reducing prices according to their competitors to compete with them.
Coca cola investing money on new projects and technologies (like using new software for make formulas) according to technological changes.
Coca cola give promises to provide shareholders healthy returns, so the shareholders can invest more, and coca cola can survive into the slow down.
Coca cola concentrating on to produce better quality of products according to customer needs.
Coca cola launching new products like diet coke in market to give more competitions to their competitors.
A range of functional areas:
The functional areas which accomplish the marketing goals of the organization are:
Human resource management (HRM): the main purpose of human resource management department is to manage the human resources of the company. Recruitment, performance motivation and training are main functions of human resource management. HRM management department is also responsible for make a strategy, and they analyze, plan and implement the strategy by choosing effective approaches.
Finance: the finance department treats with money, and the function of finance department is to control the budgeting of the organization. They take care of the funds availability that the organization should have sufficient funds for working.
Production: production is function of company that is liable for generating outputs from inputs outputs by using different production processes. The production department is responsible for using the inputs like raw materials, machinery etc effectively to produce necessary outputs.
Marketing: the function of marketing department is very important for organization to make a new strategy. Marketing department finds the consumer needs and they take the responsibility to fulfill these needs. Marketing department give the information about latest market trends.
Time table: time table describes an organization's objective and time duration to achieve them. Time table is a presentation of activities and plans for make a strategy.
A time table for building new software is given below with key milestones and timing:
Time table for building software
Task to be completed
Make a vision of software
3rdmarch to 8thmarch
People, member of survey team
Ask from people their requirements
10thmarch to 20thmarch
Analyze the resource requirements
Development team members
Check the internal and external resources
23rdmarch to 30thmarch
Build a prototype
Use of resources and vision
2nd April to 15thApril
Check its working according to needs
16thApril to 20thApril
Use of resources
22ndApril to 5thmay
Software engineers, development team
6thmay to 12thmay
Development team, investors
15thmay to 25thmay
Dissemination means broadcasting effective information about strategies and get commitment from people like audience, stakeholders, shareholders etc.
To make a strategy successful it is very important to increase the involvement of people towards the strategy. This process builds a link between organization and people. For dissemination process it is very necessary to choose media and channels which are most reachable to people.
How might dissemination process might be use:
By mission and vision statement: in dissemination process vision and mission statement plays a very important role. By vision and mission statement the organization can explain its objectives clearly to people.
Web access: at present time the web access popularity is increasing day by day so web is a very effective way for dissemination. Now days web access is a most reachable channel for people so the information can easily getable by people.
Journals, newspapers and magazines: newspapers, journals and magazines are also easily getable by people. It is an easy way to broadcast the information to all kind of people.
Multimedia and media resources: Multimedia resources like tapes, compact disks etc and media resources like television, radio etc. these are very effective channels of dissemination to attract people.
Conferences and meeting: with conferences and meetings organization can share information to stakeholders, shareholders and other people easily. These conferences can be done internally and externally by organization.
Importance of monitoring and evaluating a new strategy:
To know the right track: by monitoring and evaluating a new strategy an organization can see that whether they or not achieve what they wanted to achieve, or could they meet the objective requirement of strategy or not. To know that whether the organization is on right track or not to achieve the goals
Effectiveness: to verify the effectiveness of new strategy, that it working properly or not, whether it is helpful in the business growth or not.
Profit growth: the monitoring and evaluating is very important to know about the profit growth, that whether the profit of organization is increasing or decreasing by new strategy.
Impact on shareholders: by evaluating and monitoring the new strategy the organization can see the view of shareholders towards the organization, that whether it is going to positive side or negative. To see that shareholder are ready to invest more money in organization or not.
Monitoring an evaluating process:
Continue with strategy
Set Monitoring objectives
Set monitoring objectives: firstly it is important to set monitoring objective, which should be based on required output, performance of strategy and strategic needs.
Input: next step is to give necessary inputs which are required for processing like resources, material, information etc.
Process: processing of inputs is very important to produce output so the processing is done in this step of inputs.
Output: in this step the output after processing is generated like results of processing.
Monitoring: in this step monitoring and evaluation is done like to check whether the strategy matches the monitoring objectives or not.
Objective matched: in this step there are two conditions occur, whether the strategy matched the monitoring objectives or not. If it is positive means matched the objectives then strategy is successful and continues with it, on other side if it is negative that means it did not match the monitoring objective.
Changes: if the strategy did not match with monitoring objective then again the changes are made in this step and send to input.
Continue with strategy: if the strategy matched with monitoring objectives then continue with strategy and stop the monitoring process.