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This report has been prepared with a specific purpose in mind which it will tell about the objective of this study. It means what is the purpose or what can be learn from this study. So, one of the objectives is to understand the organization's relationship marketing in the aspect of consumer, supplier, internal and external relationships.
Secondly the report also provides a brief history of Coca - Cola which it tells how the journey of the company when it started.
After the short history of company, the report comes to the main topic which is to analyze the organization's relationship marketing in the aspect of consumer, supplier, internal and external relationships. Each of the aspects are provided theory, example and from the theories are applied to each aspects of relationship marketing.
By the end of it, the report provided a brief of conclusion of the organization relationship marketing and five ways to overcome the shortcomings highlighted in the report analysis and improvements on the organization's relationship marketing.
TABLE OF CONTENT
OBJECTIVE OF STUDY
HISTORY OF COMPANY
3.1 CONSUMER RELATIONSHIP CONTINUUM
3.2 FREQUENCY MARKETING
3.3 VIRAL MARKETING
B. SOCIAL NETWORKING
4.1 SUPPLY CHAIN
B.SUPPLY CHAIN MANAGEMENT
C.COMPANY CAN TAKE LOWER COSTS
D.PRODUCTION POSSIBILITY FRONTIER
5.1 MATRIX STRUCTURE
5.2 INTERNAL STRAGIES
A.PERSONAL DEVELOPMENT AND TRAINING
B.RECOGNITION AND REWARDS
6.3 PROFFESSIONAL BODIES
1.0 OBJECTIVES OF STUDY
The main objective of this report is to analyze the organization's relationship marketing in the aspect of consumer, supplier, internal and external relationships. This can be done by understand the theory first and try to apply the theory on company by giving fact and suitable examples.
The second objective is can learn how to analyze and study in efficient way the current position of company that has been chosen. The study also aims to perform an analysis of how relationship marketing worked with the company because not all the company has the same aspect in relationship marketing. Apart from these objectives this study is also conducted to understand the flow or method in the aspect of consumer, internal and external relationships. So Coca - Cola companies has been chosen for this report.
2.0 HISTORY OF COCA - COLA COMPANY
Accoding to Ezin, when the founder invented the original recipe for new Cocawine the history of Coca-Cola, John Pemberton dates back to 1885. Coca-Cola Pemberton French wine was believed to be inspired by the popular Cocawine devised Vin Mariani, Angelo Mariani by it which he was named. Pemberton has developed a non-alcoholic version of Coca-Cola which the original Cocawine Fulton County which he had banned it before.
Carbonated water included it by accident and added later by accident when he was mixing drinks for friends. Because of his friend really loved the new taste, so they order to incorporate it and he changed the original expression.
In the 21st century, the history of Coca-Cola, another was a blind leap in the market. 2006, the company has launched the "Diet Coke" and sweet taste artificial. In late 2006, it was announced "Coca-Cola Zero" sweetened with aspartame and acesulfame potassium. Since then, the company has a few differences between the productions of other products, including Coca-Cola formulas which remain the same.
Currently more than 200 different countries, Coca-Cola is sold all over the world. Coca-Cola Company has sponsored an assortment of events such as "NASCAR" and "Olympic" for now. In the UK, it is a major sponsor of the "Football League". (EZIN,2008)
3.0 CONSUMER RELATIONSHIP
3.1CONSUMER RELATIONSHIP CONTINUUM
The first level is focused on the possibility of cost the most superficial level leading to a long-term relationship with the lowest one, marketers rely on pricing to motivate customers and competitors can easily duplicate pricing benefits. The second level is social interaction which means customer service and communication are key factors. The last level will be interdependent partnership which relationship is converted to structural changes to ensure the partnership and interdependence between a buyer and a seller. (CHEE CHING NG, 2010)
Coke campaign which is the first level, a very special occasion is focused on the price of Coca-Cola company was looking at another special for the people of Diwali in India. The company made super price-off promotions which was the price for 1.5 liter of bottle was same as 1 liter of bottle.
For second level is social interaction which example can be give was Quenching the thirst of motorist, pedestrians and passerby's during Delhi's hottest summer season. Coca - Cola "Go-Red" teams went out into the main cities to serve and refresh on the spot with ice-cold Free Coca - Cola by the campaign "Go Red" announcement of heavy FM served well to the people in Delhi area. (BHAG CHAND, 2009)
Last but least called as third level is Coca - Cola companies has a manufacturer's customer advisory boards that help develop products and marketing programs in the beverages industry.
3.2 FREQUECNY MARKETING
Customers pay premiums and other cash, rebates, products, or marketing frequency marketing program is called as frequent buyer or user. (CHEE CHING NG, 2010)
In July 2010, Coca - Cola will set the stage spectacular under the crown of promotion (UTC). For the purchase of all of 250 ml bottle of Coca-Cola, winning many of the world's great destination of dream vacation like magic. Cola - Coca - Cola Fanta, and Sprite Company went ahead with the idea of â€‹â€‹giving a chance of free holiday. Promotion gave the chance to win a trip to Hollywood, Paris, Singapore, New York and Cairo together with a free stay of 4 nights, flights, holiday Dreamland for these consumers. Consumer promotion had a great response from the public.
"Kiya Nikla?" was mew promotion in August 2001, which it had been launched in collaboration with Nokia. Consumers had a chance to win promotion Coke, Sprite, Fanta and Coca which was getting all mobile phone 3310 with the purchase of a bottle of Coca-Cola Coca-Cola 750 ml. (BHAG CHAND, 2009)
3.3 VIRAL MARKETING
Coca - Cola is using the Internet to promote the company's products. The company has a very easy guide to go to the website. Consumer will be able to examine a variety of games, contests and through shopping. Customers also could know information regarding the society that linked with Coca - Cola and it will be interactive thing throughout a special section of the web site that allows consumers there. (BHAG CHAND, 2009)
In addition, the modern era of communications and networking, the company uses a variety of social networking sites and YouTube, Facebook, Twitter and many more. It is because to connect with consumers. It helps to reach those consumers that cannot afford to spend time on television. (BHAG CHAND, 2009)
3.4 CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
Customer Relationship Management is the initiation, enhancement, and maintenance of mutually beneficial customer and partner long-term relationships through business intelligence-generated strategies based on the capture, storing, and analysis of information gathered from all customer and partner touch points and transaction processing systems. (CHEE CHING NG, 2010)
To combine e-commerce, CRM and logistics to stream lining in one package, Coca-Cola applied the CRM in their business model. Coca-Cola Enterprise software required a cost-effective solution that can be customized to fit the platform as part of the logistics and big e-commerce. Coca - Cola gives a CRM Solution Sales Manager with excellent visibility of the dealer distribution channels and sales to identify the new opportunities and sales potential.
The company is also providing excellent customer service, maintaining the customers satisfied with the high quality products, company have implemented CRM to build strong relationships with their customers. It already has proved to be very beneficial for the company.
The Coca-Cola website has worked hard to maintain the high standards of CRM. And to be able to contact the companies you have a question or complaint, they offer a phone number and e-mail link. In addition to customer, www.cocacola.com provides a section (Frequently Asked Questions) FAQ where customer can find the questions that are often asked about the issue of customer service. (BHAG CHAND, 2009)
4.0 SUPPLIER RELATIONSHIP
4.1 SUPPLY CHAIN
Supply chain is to manage the entire flow of information, materials and services from raw materials to final consumer. It is also different from supply management which focuses only on relationships . The characteristics of supply chain are info sharing and monitoring, inventory management, evaluations of costs, joint planning over long-term, coordination over all levels of business and management, leadership and Sharing in risk and return necessary. (CHEE CHING NG, 2010)
Coca-Cola Company only generates syrup to make carbonated beverage and selling it. It does not generate the final beverage. It has a more than 400 brands which does not produce the final product of any of them. The company is focused on using other franchise to make the final beverage syrup which has been owned by major bottlers, the interests of the part of the distributor. (FOLEY, 2009).
B. SUPPLY CHAIN MANAGEMENT
According to the company, they focus on the production of bottling partners create a package and distribute the product. The supplier only provides sugar, citrus, coffee, perfume and water supplies only.
In 2004, Coca-Cola changed their supply chain to achieve greater efficiencies. Three business units were combined in North America to make one more efficient integrated unit. The process streamlined information technology, procurement process and supply chain operations. The company made another change in 2006, when it began delivering its products to Wal-Mart warehouses, changing a 100-year old operational practice. (FOLEY, 2009).
The largest single bottler for the company is Coca - Cola Enterprises in which the Coca - Cola Company owns a 35 percent share. The company does not own a controlling share in any of its bottlers but it does work closely with them.
C. COMPANY CAN TAKE LOWER COSTS
It is important to remember that Coca - Cola does not produce hold a controlling interest in those bottler companies. So the collaboration between bottling companies and company are much involved.
The single largest ingredient they use is water and a lot of it is wasted. So in 2007, in order to make it lest for the level of water that Coca - Cola use, the company has entered into a partnership with the World Wildlife Fund (WWF).They also signed the CEO Water Mandate with the United Nations to protect freshwater resources. This becomes a priority in the company's supply chain and it is likely to cost the company more but it will protect shrinking resources in the world. (FOLEY, 2009).
D. PRODUCTION POSSIBILITY FRONTIER
Coca cola owns the licenses of 400 brands. Its products are sold in more than 200 countries. It also holds part interests in a number of bottling and distributing companies. Considering the concept of production possibly frontier, at this time it would seem that Coca - Cola is producing its good in the most efficient way. (FOLEY, 2009).
Partnership is a strategic alliance or relationship between two or more people. Successful partnership is based on trust obligations often, equality, and mutual understanding. Company may be able to choose the partner or, as is often the case, the partner may be assigned to the company. (CHEE CHING NG, 2010)
CHARACTERISTICS OF PARTNERSHIP
Scope of activities
Single functional area
Supply chain integration;
Long-term with no fixed date
Firms see each other as extensions of their own firm
Coca - Cola and MC Donald's launched the "we go together" joint promotion to attract the consumers a real sense globally. Promotions MC Donald's restaurant all went well with a special offer for coke and fries. Coke force customer to buy a drink from MC Donald's which in this way, put the competitiveness out of other competitor on top of the purchase while keep other businesses or restaurants to continue buy the Coke's product.
The company also uses the intensive distribution strategy, selling products directly to consumers that are using an intermediary in the distribution. The business products are sold in retail will include entertainment facilities in a small shop, restaurant, petrol station, newsagent, school, sports, and from vending machines almost at all. (FOLEY, 2009).
5.0 INTERNAL RELATIONSHIP
5.1 MATRIX STRUCTURE THEORY
This type of construction combines the traditional division seen in the functional structure of the project team. Project as well as between individuals, teams and matrix structure, it is working in company department or function.
For example experts and design engineers, task and team projects that have been established in order to develop a new product with marketing them, finance, human resources, and production skills. These teams can be temporary or permanent, depending on the task they are required to complete. (CHEE CHING NG, 2010)
Multidivisional matrix structure may be more appropriate for The Coca-Cola Company. It will work together in order to create a solution to the problem, at each level, which will increase the level and coordination between administrators, business or department.
In April2007, said Chief Operating Officer (COO) Muhtar Kent focused on simplifying the structure for the company to reduce bureaucracy. In theory, at this stage, the assumption organization of pursuing the matrix structure and the product team would be wise. Operate in only one domain, The Coca-Cola Company has more than 400 products. (MANENDRA SHUKLA, 2011)
5.2 STRATEGIES INTERNAL MARKETING COCA COLA
A. PERSONAL DEVELOPMENT AND TRAINING
Coca-Cola Great Britain will be the priority that company assist in the development to give employee a rewarding working life, to treat employees well. Means to create an environment where employees can excel in their performance, to develop technology for improvement, this is to move towards the goal of employee career. Employee learns more and more to build their career by providing capacity building programs and training, on-the-job learning and feedback and coaching.
To keep it hat, the company need to invest in its development. In addition, the Company invested in the year with the aim of emphasizing the performance management of employee development planning capacity of employees, human resource management internally, development and leadership of managers on an ongoing basis. (MANENDRA SHUKLA, 2011)
B. RECOGNITION AND REWARDS
It provides the benefits of a competitive salary and motivation which is very important for both the retention of the most talented people in order to promote the company's business and forward attract. Company will take into account such as holidays, pension, and medical, additional so as to form a total compensation and benefits package for employees of the company.
The initiatives is included in annual sales meeting in Mauritius where, like Kathmandu employees of Dabur, also as Dabur executives and operations in more than one hundred of the company that combines aspects work performance and employee morale. And at these annual sales meetings, junior level can success in achieving their life goal which company will gave a cash incentives to them. (MANENDRA SHUKLA, 2011)
6.0 EXTERNAL RELATIONSHIP
External relationship is the development of good relations with the organization and products which are use a variety of tools and communication channels, with that key. Traditionally, in order to build a good image by through the stories in the print and broadcast media, PR organization need to do the relationship between the news media. Examples that can be given are press kits, speeches, seminars, annual reports, charitable donations, publications, community relations, lobbying and identity media. (CHEE CHING NG, 2010)
Coca-Cola is a member of the (ALEC) Trade Council legislation in the United States. ALEC is a corporate bill mill. It just is not the normal front lobby or group. It is much more powerful than that. Their wish is for the benefit corporations hand state legislators through. The company funded the operation of almost all of Alec. (RIZ WANEMJAD, 2010)
The Coca-Cola in United States America is playing a big role for lobbying working's force to increase the favorable legislation in the beverage industry. In both years of 2005 and 2006, it spent $ 1 million annually in lobbying. In 2007, it was increased to $ 1.7 million and by 2008 it is $ 2.5 million. In 2009, it jumped to nearly double the previous year or the total lobbying expenses of $ 4.5 million. Lobbying expenses is due to the fight against tax increase industry sweetened soft drinks and other beverages. In 2010, Coca-Cola owns 39 lobbyists at 8 different firms lobbying on their behalf. (RIZ WANEMJAD, 2010)
6.3 PROFESSIONAL BODIES
In order to improve the water quality upstream of the Yangtze River, operates 39 bottling plants in China, World Wildlife Fund has joined forces alliances with the Coca-Cola. For example, one project was in cooperation with farmers in rural areas to reduce the outflow for waste of the animal into the river by turning waste pig on the type of fuel which is able to use for heating biogas and cooking. It is includes looking for ways for more efficient multinational itself in the use of more water. (RIZ WANEMJAD, 2010)
In order to provide access to health care to the poor through regular health camps, Coke India has partnered with government and NGO. An Indian coke effort has focused on both the local community and the environment. Where they had been established for the benefit of children in primary education project slums and villages, their priorities have included education. The company also has performed its water conservation projects, as in the case of a community-based rainwater harvesting to restore the level of the water, promotes the health maintenance is supported.
Coca - Cola India also is working on several projects as part of the part of corporate social responsibility and social causes. They supported school campaign along their ambassador which was Sachin Tendulkar and besides that the company had made one project names "The project Unnati" which was focused on more yield of mangoes to farmers. (RIZ WANEMJAD, 2010)
After thorough research, the report came to the conclusion that the product is gaining popularity among the Youth people which is Coke strategic relationships are working well.
The study also indicated that the consumers are satisfied with the Coca-Cola products and purchase them without any specific occasions.
Cola-Cola also adopt a good customer relationship management, it focuses segment of the product because each segment is affected by different sets of factor which one of it is enhance sales.
Conclusion, even though Coca - Cola is one of the successful company in the world but there's no organization in the world is perfect. It has to be some problem regarding the company and change need to be done. So Coca - Cola also needs to make some improvement.
The first recommendation to the company is for marketing strategy of company should divers it business in related this sector Like-Ice creams, butter & chocolates because of those industry have their own consumer which is huge in mostly outlets.
Secondly, company should search new area for increasing in sales. It means in winter season, company should give more discount to retailers so they can sell more for the product. The company also must make new strategy to fight local cold drinks brands and try to decrease the price of commodity in competition of Pepsi.
The third recommendation is trying to be more emphasis in order to facilitate the customer and provides the market infrastructure. Company may need to focus on the elderly in rural areas and trying to increase the availability of Coke. Next will be the company is required to prepare a plan for the future in order to maintain the market. Because the company's competitors are possible to increase the market, which they should appointed a special representative for listening retailer's problem and solves them.
Last recommendation is the company can increase the sales when it considering more on retailers, their suggestions or complaints about service or product so that necessary action can be taken and make sure to always make a review meeting so that the working pattern of the executives can be checked and improved if needed.