To analyze why a new coke got decline stage and what were other Factors that cause a new product to go to Decline Stage. To find new strategy to market the declined new coke in the global market
According to the world wide marketing associations, a brand can represent the consumer experience with the product and frequently refers to name, logo, and slogan. The factors commanding branding are the requirement of the customer, design, packaging of product and mainly advertising, public relations, etc (1995, AMA).As a rule , People believed that marketing and salesmanship as the best criteria for a healthy business , but nowadays , company have to develop and enhance the brand image otherwise the service or product would be considered as merchandise. Branding is the important part of marketing strategy as it makes in the minds of the customers who are in direct and indirect contact with the product, the examples are clients and employees, vendors, shareholders. To deliver the mission of the company, the brand should be successful as well it makes the credibility of consumer and motivates the consumer also constructing brand loyalty and sentiment attachment with the users. The company should do market research and brand research to know the various aspects of their market products and forthcoming products. Brand research is helpful for company to know about customer perceive theirs brand also cause for differentiations from its equal player and other factors. As a company I have chosen Coca Cola Company and its product ‘Coca cola’s new coke’. This course work mainly talks about the current situation analysis of Coca cola’s new coke and extending its market. This assignment demonstrates the importance of SWOT analysis to point up the strengths and weakness, opportunities and threats for the new coke to market in the market. This assignment also points up the concept of marketing plan to make the ‘new coke’ as a successful brand from the current product line (Decline level). Then lastly this assignment highlights the critical analysis of learning outcomes of marketing management.
Individual situation analysis
The coca cola company was invented by a pharmacist who called as John Stith Pemberton in 1886.The KO (coca cola called in NYSE) is a beverage company which are manufacturing and distributing and marketing of non-alcoholic beverages concentrate and mainly syrups. The company is being well known for its leading product coca cola. In early days the coca cola company was sold three main products which were Pemberton’s French wine cola and Pemberton’s globe flower cough syrup and Pemberton’s Indian Queen Hair dye. The company got place in stock exchange in 1884 and became with new name as Pemberton Chemical Company. A statement from 2009 annual report, the company’s beverage products reached to more than 200 countries. The coca cola provides more than 60 billion beverage of all types to the world for every day. Distribution details’ of world wide as,
35% in the USA
45% in Japan, Mexico, India and People’s Republic of China
20% from the rest of the world
Coca cola provides almost 400 brands in more than 200 countries with its brand name coca cola beverage. Coca cola made first attempt to make diet soft rink in 1963 and still it is going well in the market but in front of diet coke , it is down little bit. The other product of coca cola’s is Fanta, Sprite which was introduced in 1940’s. In the mid of 1990, the company introduced non-carbonated beverage as Minute maid PowerAde and Nestea, Fruitopia and finally Dasani water. I would like add to this part with over all structure of Coca Cola Company.
Coca cola Company Over view
Headquarters Atlanta, Georgia, U.S
Area served globally
Key People Muhtar kent (CEO)
Products coca cola
Carbonated soft Drinks
Revenue US$31.0 Billion (FY 2009)
Net income US$5.82 Billion (FY 2009)
Operating income US$8.23 Billion (FY 2009)
Total assets US$48.7 Billion
Total equity US$24.8 Billion
Total employees 92,800 (July 2010)
To carry out the situational analysis of coke, SWOT is the best to explain factors affected coke to get decline stage as well it gives information to gain market again based on these factors.
SWOT ANALYS OF NEW COKE
Marketing plan is defined as the process of marketing and actions of management. It is termed as a guideline which needs to be followed to meet the strategic objectives of the company which it wants to achieve in the future time. It broadly defines the marketing situation analysis, objectives and goals, company’s marketing strategy and the actions to be done to achieve the goals. The step is to audit the market to compile the company’s current marketing situation. It is to be done to estimate the company’s relation with the environment in which operates. This audit has been carried out in terms of SWOT analysis to understand the situation of company in the current scenario highlighting the strengths of strategy, brand, technology and finance. Marketing plan includes merchandising public relations, sales promotions and advertising. Marketing plan helps the business by promoting and attract the customers to make a profit.
Weaknesses of limited suppliers and lack of marketing. Threats including competitors, illegal use of their technology and economic turmoil. Opportunities including potential customers and scope of new services into the market. Next step in the marketing plan is to have an objective to work upon. The objective of the company is to extend its current product line of smart phones to grab the market share and company needs to make the marketing plan to achieve the goal. The development of successful marketing strategy involves research about the market in which company operates and concluding effectively. By successfully evaluating the market, organization will get a competitive benefit over the competitors. To extend their current product line of smart phones, Coca cola’s New coke can adopt different strategic options to make it a success and these options are as follows:-
Price Effective Strategy
This strategy really assists business in bringing in customer goodwill and consequences in customer loyalty. With this strategy business needs to reveal its product in a inimitable way that customer gets attracted to the product. This imbibes focusing on the areas which are important to customer. The differentiation strategies will be aiming at broad marketing strategies which involve creating the product or the services which will perceive all over through out the industry as a unique product. The researchers are suggesting the differentiated strategies would likely generate more high profits then a strategy of local cost. It will be creating a best entry barrier for Coca cola’s new coke. The profit of this strategy is that organization acquires core competency in an exact product.
The differentiation strategy is specially associated with
Design of the product
Brand Image of the industry
Technology of the product
Dealers involved in the product.
Network used for the product.
Limitation with this strategy is that if company doesn’t select the right characteristic of the product which is imperative to the consumer and launch it in the market then organization might get poor response from the consumers. in today’s competitive world being unique is more important. It makes the good market for the product which gives success to the company and good competition to other industries. This strategy has the ability of separating our product and ourselves from the other competitors.
This strategy involves principle of focusing on a special group of customers or the segments of the customers. It addresses to different customers as per their requirements and characteristics. This strategy needs the serious analysis of requirements and desires of the different sets of consumers and then meeting those needs with the products. Coca cola’s new coke as a company keeps a pointed focus on the Youth and it is the most favourite brand among youths. This is the advantage of this strategy as it attains the population and enhances its market share. At the same time, it has short coming as well; organization tends to forget other sets of consumers while accruing a particular set and market share remain limited.
Price Effective Strategy
This strategy involves examining the prices of competitors for their products to appraise the dissimilarity between the prices of the related products. This option provides a good stage to the organization to put the prices of their product to increase the market share by giving tough contest to the competitors and clinching consumers towards them. The advantage of this strategy is to evaluate the product cost and then degrading the cost to beat the competitions. There is a drawback of this strategy as it may fallout in terms of loss as company might degrade their product’s price compellingly to thrash the competition and not getting the return on money employed. Marketing Strategies on paper will not help the organization; they need to implement this marketing strategy as well. Strategy completion plan imbibes the need of evaluating the different resources available to the company to meet the objectives and goals. The evaluation will be relying on the actions that are to be executed and incorporate price evaluation for the new product which is dependent on different factors like competition, cost, retailer/supplier relation, negotiating margins and political factors. Next step in the marketing plan is to define the distribution channel as it is very imperative for the companies to have an efficient way of reaching out to the customers. The distribution channel would affect the profitability of the organization as they depict the attraction or non attraction of the customers to the company. The last step in the marketing plan is to inform customers about the product and its benefits. Organization should use the right medium to reach out the right customers to achieve the objectives of the extending the new product line. Organization can make use of different communication tools to reach out to the customers. Organization can make use of Advertisement in radio, TV or newspaper. A message in any these media can get to lot of people quickly, this will provide insight to the product features. Company can make use of promotion plans to promote the new product line. Company can make use of merchandising to promote the product as it has long term effect on the people’s mind in terms of long lasting effect on the people’s memory.
In this manner, we can say that Coca cola’s new coke can adopt a marketing plan to have a successful extension of its product line by first examining the situation of the company with the help of SWOT analysis and then having an objective to achieve. After all these things, they need to make marketing strategy which could be based on the different segments, price or differentiation from other competitors. Once it is done, price evaluation of new product is to be worked upon which is very important for the product of the company and then to reach out to the customers , company needs to select a communication tool to make people aware of the product and what are the features of the product. The communication tool should be the right one for the right people. It is very imperative to choose the correct medium to reach out to the customer as this is the main stay of marketing plan which helps organization to accrue customers towards the product and services
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