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The operating environment of our company contains two parts: the macro-environment and the micro-environment.
Macro-environment: Entering into the 21st century, the material production of the society has been abundantly riched and the standard of living of people has been greatly improved. The UK beverage market is going through an environment of constantly meeting the material and cultural needs of people. The consumption concept of pursuing healthy and fashionable lifestyle becomes more and more important. People constantly strive for excellence and dedicate to the pursuit of aggressiveness. The number of people that concern about the nature and health is constantly increasing, while some products of the Coca-Cola and their fashion sense and metropolitan image are consistent with the characteristics of modern people’s entertainments and the development of living space(Wette Kristensen,2005). They also comply with the demand of low calorie of the consumers, so it will be subject to the general consumers.
Micro-environment: Generally speaking, Coca-Cola has the stable and strong suppliers and intermediaries with scale. The supply chain is relatively clear. It can constantly adjust its supply chain and value chain according to the actual situation. This has great relationship with creating the stable kingdom of Coca-Cola(Jens Rupp,2009). There are basically only two competitors within the industry of the US soft drinks for the two companies account for 70% market shares. But there are some differences between these two brands in the customer experience and the impression. Both have a long history and great advertising investment. The influence of history and advertisements make the two brand Coca-Cola and Pepsi become the symbol of American culture. For various reasons they form a great industrial monopolies. Currently Coca-Cola continues to develop to a new direction.
(2)Competitive regional analysis
The main rival of Coca-Cola in the beverage market is the other existing competitors and potential competitors. Among them, the existing competitors include foreign competitors and local competitors. The foreign competitors-Pepsi Cola is the largest available competitor. Pepsi Cola is one of the world’s most successful companies of consumer goods. The two companies monopolize the cola market in the world (Eileen P,Anderson-Fye ,2004). Currently in the UK, they are popular in different cities. The local brands are Coca-Cola’s local competitors. These brands in the UK have a relatively fixed group of consumers and the local consumers have formulated certain consumption habits, which is also a strong rival of Coca-Cola.
The world’s largest soft-drink giant, it has the advantages of strong manufacturers and great global competitiveness. Strong marketing capabilities, systems and corporate advertising. Brand image grows deeply in people’s minds, has become one part of consumer’s life. The Mystery formulations of the core product are extremely confidential, so it’s popular for 100 years without failure. Access deployment is rather complete, and has the strong sales channels of fast food.Innovative and highly competent, the most representative product is the launch of Diet Coke.High market share, more market leading brand products.Products have the characteristics of convenience, the unique flavor and the fair price and so on.Product life cycle has the patterns of loop recycling, remains intact.Recently it announces that the employee stock option is one part of salary transfer fee, which will fully reflect the financial condition of enterprises.
Large organizations, control is not easy.Consumer’s stereotypes to the products – unhealthy beverages containing the ingredients of caffeine in cola, and could easily lead to obesity and other health problems. The product identification of major consumer groups (younger) is slightly worse than Pepsi. Access of bottled drinks is over the wide range and it’s more difficult to control the final product quality of consumers.
General soft drinks industry can enter into the industry with low barriers, however it’s hard to develop into the cross-marketing level.Carbonated beverages are more suitable for the demand of the younger, especially for Latin America and the Asia-Pacific countries. The proportion of young people is rapidly improving which brings the industry more business.Brand image of beverage has a deep influence to the sales condition.
The alternative of other Non-cola carbonated beverage products of other alternative is still quite possible.The pursuit of health consumers will definitely reduce the consumption of carbonated beverages. The competition of beverage market competition is quite fierce. The main rival – Pepsi is a huge threat. Over the past few years, the performance of Coca-Cola is stagnant while the Pepsi is continuous growing.
Analysis of political and legal factors: the British political environment is stable, the production is developing and people live and work with high level. The legal system is more perfect. Coca-Cola has to be in accordance with the British laws and regulations when takes various marketing activities to achieve better development in the UK. This can bring more advantages and opportunities to Coca-Cola.
Analysis of economic environment factor: the treatment of the UK to the foreign investors is very favorable. Foreign and British businesses get the same tax, financial subsidies, new technology development subsidies. Because of the complete base facilities, transport facilities, communication equipment, stable political environment and other advanced and favorable conditions, they are enormously attractive to foreign investors. In addition, the UK is a developed country and has a relatively high level of economic development. (Springer US,2003). So the product quality competition is more important that the price competition if Coca-Cola want to be well developed in the UK.
Analysis of technical factor: due to the rapid development of science and technology, the cycle of using new technology in new product has been greatly shortened. The product renewal of beverage industry has speed up. At the same time the promotions are becoming more diverse.
Analysis of Social and human factors: the UK is a country filled with elegant atmosphere. But it also has the side of young and enthusiastic. The British are taking care of the life quality and spiritual enjoyment.
2. Marketing positioning
(1) Market Segmentation
1) segment by the purchaser’s age:
According to the market survey, the main consumers of Coca-Cola are the younger with the age from 15 to 34. They account for more than half of the whole consumer group. The young generation are open-minded and they pursuit healthy, fashionable and high-quality life. Therefore the natural and healthy Coca-Cola which is consistent with the trend can meet their requirements.
2) segment by the purchasing factors:
Interest segments of market
Pursuit fashion and trendy and like to buy foreign brands
Health and beauty
Pursuit fashion, health and leisure, with more pressure and eager to relax
Functional beverage or packaged water with caffeine and vitamins
Health and care
Conservative, pursuit stability, peace and the longevity of life
Healthy and nutritious
(2) Target Market
Through market segmentation, we decide to choose the 18-29 year old consumer group as our target market. Because the consumers with this age are the main consumers of the Coca-Cola products. Besides, as there are lots of universities in Britain, the target group can form the market that is large enough and has some potential. Moreover, since the consumption attitudes of college students change and the income levels of young white-collar increase, the purchasing ability of the group has been improved in some extent. Meanwhile the young people have a higher Coca-Cola brand loyalty. As long as our products can make a breakthrough on taste and function, it will win the consumer’s heart easily.
Develop with the way of regional agency, that is using large cities such as London, Oxford, Cambridge, Birmingham, Liverpool and so on to drive the small market. Take the chains and supermarkets as the main distributors.
(3) Marketing Strategy
Coca-Cola is an enterprise that keeps pursuitting innovations. After successful developed the non-cola carbonated drink “smart” series, it introduced a natural non-carbonated fruit juice and successful realizes the product diversification. Its product is coherent. On the other hand, as the “boss” of beverage industry, Coca-Cola has a clear competitive advantage.(Fiona Scott Morton,Florian Zettelmeyer,2004). First of all, it maintains a concentric development and its own technology, equipment, staff, cost and other advantages provide a solid backing to the development of tea drinks. Second, the Coca-Cola has the world’s most mature, stable production capacity and the fastest distribution channels. The market of tea drinks becomes a corollary. In the end Coca-Cola has a well brand reputation. So we put the favorable market segment as a starting point and focus the strength and advantages of the enterprise in one market segment to obtain success. And then through the spread role of the target market to enlarge the vertical depth of consumers.
(4)The effect of marketing strategy
Segment the market by selecting the 18-34 years of age to learn the needs of market segments and take intensive marketing activities. Then the strong market position can be achieved in the market segments. The enterprise can save substantial operation costs and win the high return on investment as a result of specialized production, distribution and promotion.
3. Advertising Campaign
a. advertising strategies
(1) advertising objectives: improve the brand image and product awareness
(2) advertising theme: happy life
(3) performance style: easy sunshine
(4) advertising slogan: create an infinite future with Coca-Cola together
b. media strategy
Repetitive, with the combined effect of symbols and actions
low cost, flexible information dissemination, timely, wide spread,
effectively attract the target audience’s attention, and interact directly with consumers
Lasting preservation of information, high trust
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