Coca-Cola’s Marketing Plan.edited

Running head: COCA-COLA’S MARKETING PLAN 1 COVER PAGE Coca-Cola’s Marketing Plan Student’s Name Institutional Affiliation Date

COCA COLA’S MARKETING PLAN 2 Table of Contents COVER PAGE ............................................................................................................................... 1 Executive Summary ....................................................................................................................... 3 Coca Cola Marketing Plan ............................................................................................................ 4 Overview of the Company ......................................................................................................... 4 Marketing Objectives of the Coca-Cola Company ................................................................. 5 Key Issues Affecting the Coca-Cola Company ........................................................................ 6 Current Market Situation ............................................................................................................. 7 Market Description .................................................................................................................... 7 Segmentation .............................................................................................................................. 8 Targeting ..................................................................................................................................... 9 Positioning ................................................................................................................................... 9 The Product Review ..................................................................................................................... 10 Competition .............................................................................................................................. 11 Nestlé S.A ............................................................................................................................... 11 PepsiCo .................................................................................................................................. 12 Distribution ............................................................................................................................... 12 Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis ................................. 13 Strengths ................................................................................................................................... 13 Weaknesses ............................................................................................................................... 14 Opportunities ............................................................................................................................ 16 Threats ...................................................................................................................................... 17 Marketing strategy ...................................................................................................................... 19 Product/Service Strategy ......................................................................................................... 19 Pricing Strategy ........................................................................................................................... 20 Distribution Strategy ............................................................................................................... 20 Promotion Strategy .................................................................................................................. 22 Market Research ...................................................................................................................... 23 Action Programs .......................................................................................................................... 23 Budgets .......................................................................................................................................... 23 Controls ......................................................................................................................................... 24 References ..................................................................................................................................... 26

COCA COLA’S MARKETING PLAN 4 Coca Cola Marketing Plan Overview of the Company According to Dhar et al. (2005), the Coca-Cola Corporation is the global leading and most recognizable non-alcoholic drink business. The Coca-Cola Company owns 20 billion-dollar brands, such as the Fanta, Diet Coke, Sprite, Coca-Cola, as four of the top five soda drinks. In the year 1886, an Atlanta pharmacologist named John Pemberton established Coca-Cola. Frank Robinson and John's Bookkeeper developed the product using two primary ingredients which included Kola nuts and Coca leaves. Asa Candler, a pharmacy specialist, acquired The Coca- Cola Company in 1891. The beverage products was sold in all 50 states within four years of establishment and it was available in Mexico and Canada by 1898 (Rani et al., 2012). Taking all into account, the Company is responsible for owning, approving, and supporting over 500 beverage brands, including transcendently twinkling beverages and juice drinks, energy, waters, and sports munchies, and ready-to-drink coffees and teas (Kant, Jacks & Aantjes, 2008). The Coca-Cola Company, which has the most extensive customer base, has customers in over 200 countries. Because the market for conventional soft drinks has plummeted due to changes in consumer preferences and tastes in developing countries, the Coca-Cola Company's annual sales and profits have been staggering. The soft beverage maker's revenue dropped 4% to $44.3 billion in 2020, with trades declining in every region and district excluding North America where the company sold more purified water and coffee, owing to foreign exchanges negative impact rates (Coca-colacompany.com, 2021). Despite revenue losses in 2020, the Corporation's net compensation augmented by 4% to $7.35

COCA COLA’S MARKETING PLAN 5 billion. Its acquisition of 17% Monster Beverage was re-evaluated and worth $1.4 billion additional than beforehand thought. Soft drink consumption has been declining for more than a decade, especially in developing markets, as adverse publicity concerning weight gain as well as other health menaces remains to stifle sales. Consequently, The Coca-Cola Corporation and other leading beverage companies are focusing their noncarbonated product growth efforts on natural product juices, sport, and caffeinated beverages, as well as purified water and tea munchies. As part of the agreement to rely less on the ancient way of operating together to make up for declining sales due to changing tastes, the Company sells a significant portion of its low-edge wrapping procedures to concentrate on higher-edge procedures such as selling distillates and treacle to bottlers. In 2014, the Company added to its holdings by purchasing a 16.7% stock of Monster Beverage Corporation, a significant producer of caffeinated drinks (Cutelo, 2018). The Coca-Cola Corporation declared a cooperation with SABMiller and the South Africa's Gutsche Family Investments in late 2014 to form Coca-Cola Drinks Africa, making them Africa's leading bottler (Mohapi, 2017). The novel organization serves about twelve high-development markets with growing dispensable wages and populations, accounting for roughly 40% of the Company's African volume. Marketing Objectives of the Coca-Cola Company The Coca-Cola Corporation has several marketing objectives that aim at promoting its marketability. Some of these objectives include increasing the awareness of their product (Schneider, 2018). Allowing people to understand the various Coca-Cola brands is key to expanding the customer base. Secondly, to Company aims to ensure at least all the outlets and

COCA COLA’S MARKETING PLAN 7 categories besides the soft drink to make other products. For example, Dai (202) claims that using its well-established brand, and the Coca-Cola Company should make other products to increase its market base and profitability. Current Market Situation Coca-Cola recently announced a noteworthy shift in its advertising strategy, revealing that all Coke Trademark brands would be integrated into a single global innovative crusade called "Taste the Feeling." Head Marketing executive Marcos de Quinto, who announced the "one brand" strategy at a broadcasting incident in Paris, said the procedure increases the appeal and well-known popularity of Coca-Cola Light/Diet Coca-Cola, and Coca-Cola Zero to Coca- Coca-Cola Zero sugar, and Coca-Cola Life (Tien, Vu & Tien, 2019). It also emphasizes the Company's sense of responsibility in making a choice, allowing customers to choose the Coca- Cola that best fits their sense of taste, life experiences, and consumption habits – with or deprived of calories and caffeine. "Taste the Feeling" will enliven the impression that consumption of a Coca-Cola is a guileless pleasure that elevates ordinary minutes (Dalamu & Ogunlusi, 2020). Although Coke's award-winning "Open Cheerfulness" promotion concentrated on what the marque has stood for over the last 7 years, "Taste the Feeling," emphasizes on the wide-ranging storytelling with the piece at its center to represent both the practical and fanatical aspects of Coca-Cola involvement. Market Description The Coca-Cola Company has its markets in almost all parts and countries globally. Specifically, the Company sells its brands in over 200 countries around the world. The Coca-

COCA COLA’S MARKETING PLAN 8 Cola Corporation vends its products according to the market's nature (Deshpande et al., 2020). In this case, market segmentation is influential assisting the Company makes selling decisions. The Company segments its market according to age (Doole & Lowe, 2012). The young customers of the age of 10-35 are primarily targeted to purchase the product. The Company achieves this by advertising its products using well-known pop superstars. Similarly, the aged population is served with the Coca-Cola diet, which has less impact on this population's health. Also, the markets are segmented according to family size and income. Coca-Cola Company manufactures products of different sizes and packages with different prices (Doole & Lowe, 2012). Regions that have many extended families receive products that are packed in large sizes and containers. The Company sells large-sized products at low prices for families in developing countries to afford the product. In the same vein, the Company sells the products in small and well-designed packages to serve customers in developed countries. Segmentation Diet Coke appeals to people of all ages and is well known. According to Abbasi (2017), the Coca-Cola Company needs to target three segments of the market. The First market segment is the one with hardworking individuals with low salaries and adolescents and undergrads. The second market segmentation involves the middle class working in the business segment who enjoys innovative items. Lastly, Coca-Cola Company targets the general population with a higher expectation for everyday comforts that can spend lavishly on the line's top. The Coca-Cola Company needs all three segments of the market because they help them extend their product line. The first segment is significant because it is where the Company sells its lower-cost goods. The Company's mid-tier and top-tier brands are grouped in the Second and Third Segments.

COCA COLA’S MARKETING PLAN 10 Proposition "Live the Coca-Cola Side of Life," associated with pleasure and happiness. Consumers have a strong emotional connection to this brand. The first thing that comes to mind when the word Coke is mentioned is fun and enjoyment. The Coca-Cola Corporation has marketed diet Coke as a diet-conscious beverage and a healthy alternative to standard Coke and Pepsi in consumers' minds (Musale, 2017). "Taste the Feeling" is another keyword associated with Diet Coke. Diet Coke is one of the two diet sodas that Coca-Cola currently offers in the market. Coca-Cola Zero is another food that they market. The Company's mission is to give consumers a taste of what a healthy beverage tastes like without breaking the bank. The Product Review The coca-cola company has 500 brands that serve its enormous customer base. According to Weatherford (2019), these brands are designed specifically to address the customers' needs in the market. Due to the rise of sugar-related diseases in the USA, the Company addresses this problem by introducing the coke diet. This product prevents consumers from developing diabetes, high blood pressure, and sugar related ailments. This idea ensures sustainable use of the products, which protects the future market. Coca-Cola products face difficulty penetrating other countries' needs due to existing legal procedures and laws. For instance, in Pakistan, Coca-Cola faces trade laws to enables its operation (Oetzel & Miklian, 2017). This situation makes it difficult for the products to enter into such markets and develop accordingly. Coca-cola products are viewed differently among countries. For instance, in the USA, the product's consumption high and has reached a maturity level (Doole & Lowe, 2012). However, in China, the product can grow but is limited by the people's habits and needs. The Chinese population highly prefers tea as compared to beverage drinks. The population views this product differently since

COCA COLA’S MARKETING PLAN 11 advertisements and other promotional activities can be different in adapting to people's diverse needs. Competition The existence of alcoholic drinks and other similar products affects the marketability of Coca-Cola products. The increasing rate of alcohol consumption has led to a decline in coca-cola drinks (Fichera et al., 2021). This idea has forced the Company to make considerable investments in the research and development of new products to address the challenge. The USA government controls the production of coca-cola products. The introduction of regulations towards producing healthy foods for consumption in the USA led to the ban of the coca-cola product in most countries (Doole & Lowe, 2012). This idea made coca-cola strong competitors such as Pepsi take advantage of the situation. In this case, the competitors will increase their market base and become market leaders in most regions. The Coca-Cola Company uses the same methodology and goals as Pepsi and Nestle, which means that differentiation through growth and creative marketing is essential to remain ahead of the competition. The Company must maintain globalization by researching Pepsi's methods, which are currently in use. At the same time, they compete for a slice of the pie to see whether they can successfully implement a similar or superior scheme. Nestlé S.A Nestlé S.A. provides sustenance, well-being, and nutritional products through its subsidiaries. Europe, Middle East, North Africa, South and North America, Oceania, Asia, and Sub-Saharan Africa are the prevailing markets for Nestlé Nutrition and Nestlé Waters were some of the segments deals with. It sells Gerber, Cerelac, NaturNes, Gerber Graduates, and Nestum baby food. Other products includes Poland Spring, Nestlé Pure Life, S.Pellegrino bottle water

COCA COLA’S MARKETING PLAN 13 increases the consumer population who use coca-cola products (Doole & Lowe, 2012). Indeed, the increasing population in Africa has led to an increase in the region's development distribution. Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis The Coca-Cola Corporation's Strengths, Limitations, Opportunities, and Risks (SWOT) review is discussed in this section. Management may use a SWOT analysis to assist with several marketing scenarios (Namugenyi, Nimmagadda & Reiners, 2019). A SWOT analysis looks at the organization's existing strengths and weaknesses and opportunities and risks. The Coca-Cola Corporation is one of the sphere's most powerful corporations. The following section of SWOT research will look at Coca-long-term Cola's viability in a rapidly evolving market. We will try to figure out if Coca-Cola can flourish and thrive in the future. Strengths Patent: The Coca-Cola Company's most significant and robust strength is its patent. It is a company's intangible asset. The Coca-Cola Business is a globally recognized brand that is well- known in particular regions and globally. According to Ţîţu, Pop and Ţîţu, (2020), the Company has a great brand image all over the world, and Bangladesh is no exception. Nobody should use the word "Coca" since the first half of the Coca-Cola Business is trademarked as "Coca." Their patent is a valuable asset since it establishes them as one of the global most reputable beverage manufacturers. Strong brand identity : Coca-Cola is a recognized brand for its distinct image. Its soft beverages are the greatest extensively consumed drinks in history (the Chu, 2020. Moreover,

COCA COLA’S MARKETING PLAN 14 Coca-Cola is without any uncertainty among the most eminent brands in the sphere. In 2011, Interbrand awarded the company the title of "best brand equity rating." High Market Share: They have a significant market share, and they are the most well-known soda producer. They outnumber their rivals in terms of market share. Coca-Cola has a 26 percent market share, while the rest of the Coca-Cola Company's products have a relatively small market share in comparison. RC-Cola is their biggest competitor in Bangladesh, with a 19% market share. The Coca-Cola Company has a sizable market share, as shown by this. Extended Global Scope : Company goods are available in over 200 nations, with more than 9 billion quotas every day. The corporation has propelled over 500 innovative products and services around the world. Most of these are Coca-Cola drink alternatives, including Coco-Cola Vanilla and Raspberry Coca-Cola. The company brands are considered to appeal to people from all lifestyles and demographics. Great Brand Association and Customer Loyalty : The corporation is among the most enthusiastically linked brands in the globe, with the highest brand affiliation and consumer allegiance. This efficacious product is connected to "happiness" and has from head to foot degree of consumer allegiance. Customers can without difficulty recognize their favored flavor and It is challenging for them to find close substitutions. Moreover, Fanta and Coca-Cola have a significantly broader fan sordid than other soda brands. Largest Brand Valuation : Based on the Interbrain’s yearly list, Coca-Cola is the third leading worldwide brand. The company has apprehended the highest spot for 7 years, with a yearly brand value of $79.96 billion. Weaknesses

COCA COLA’S MARKETING PLAN 16 they are the world's first soda manufacturers and have a good brand name and patent, they will be able to sell their products without doing much marketing. Coca-Cola does not advertise heavily and does not sell its goods to distributors on credit. As a result, outside of Dhaka, they do not have a proper distribution channel. They believe that because of the brand name, people would purchase their goods. Do not sell on account: The Coca-Cola Company does not sell on account to its distributors, while other firms do. Their profit margin continues to decrease as a result of not selling on the store. Additionally, they are losing distributors and dealers. Other businesses are luring those distributors 17, and since the distribution network is the only way for the Business to meet its final customers, they are having severe difficulties. Opportunities Introduction of new products and market diversification: Just like Pepsi, Coca-Cola Corporation can present new products in the healthiness and food divisions. This can significantly help the company increase sales and differentiate their invention line beyond carbonated drinks. Increased presence in developing countries : Cold drink consumption is uppermost in many countries with hot temperatures. Consequently, expanding one's existence in such places can be beneficial such as the African countries and Middle Eastern as excellent examples. Bring in a cutting-edge supply chain system : The Business is exclusively dependent on logistics companies and supply chain from other business on conveyance and fuel costs are continuously increasing. Consequently, developing new and improved delivery technologies could be a viable option.

COCA COLA’S MARKETING PLAN 17 Packaging of Drinking Water : The Company owns numerous bottled consumption water brands such as Kinley. However, the Coca-Cola has considerable space for development in this commercial segment. To seepage the public hostile response, there is a prospect to propagate and present more nourishing infusions to the market. High growth rate: Coca-Cola has had a high growth rate in our country since its inception, owing to its international popularity, consistency, and widespread reception among citizens of all eternities. Coca-Cola does not have a strong supply network outside of Dhaka, but they are working to find better suppliers so that villagers can access their goods. As a result, they will have a larger market share shortly than they do now. Good working relationship with a distributor : The Coca-Cola Business and its supplier have an excellent working relationship. They customize their product to meet their requirements. Discounts and allowances are used to promote their sales channel. They provide prompt service to their distributors. Threats Water Usage Controversy : Over the recent Years, the company has received much flak for its water conservation practices. Many community and conservational administrations maintain that the business uses much water in water infrequent regions. Moreover, it has been conveyed that Coca-Cola contaminates water and blends substances in the water to eradicate contaminants. Packaging Controversy : Greenpeace castigated Coca-Cola in a study released in 2017 to use single-use malleable bottles. The company is also disparaged for its reprocessing and use of renewable energy sources. Indirect and Direct competition : While direct rivalry from Pepsi is evident in the soft drinks and beverages business while several other corporations contest with Coca-Cola indirectly. For

COCA COLA’S MARKETING PLAN 19  Largest Brand Valuation Opportunities  Introduction of new products and market diversification  Increased presence in developing countries  Bring in a cutting-edge supply chain system  Packaging of Drinking Water  High growth rate  Good working relationship with distributor Threats  Water Usage Controversy  Packaging Controversy  Direct and indirect competition  Competitors' products have good taste  Political instability  Competitor marketing is becoming more professional. Marketing strategy When implementing a marketing plan, researchers must consider various variables, all of which must be connected to achieve the Company's purposes. Coca-Cola is a prime illustration of a company that has created a marketing campaign that has made it renowned and liked worldwide. Its marketing policy is to conduct thorough study and testing on the variables before implementing them. Coca-marketing Cola's campaign is one-of-a-kind, giving it a boost and widespread global awareness. Like many other businesses, Coca-Cola bases its marketing strategies on the four Ps: product, promotion, price, and location. Coca-marketing Cola's approach is focused on the marketing mix. Product/Service Strategy

COCA COLA’S MARKETING PLAN 20 Coca-Cola Business has planned for their products to come in a variety of bottle or can sizes. For instance, there are can sizes of 300ml, 1.25 liters, 600ml, 1.5 liters, and 2 liters, as well as 325ml. (Augulyte, Saraniemi & Hurmelinna-Laukkanen, 2020). It also manufactures a variety of beverages, including Pepsi, Fanta, Sprite, Fruitopia, power juice, and others. The packaging of the items differs because of their proportions. Coca-main Cola's ingredients are concentrated; it is often formulated according to a proprietary formula, with finished products made from concentrated combined with filtered water and sweeteners. Coca-Cola introduced Coke with Lemon Vanilla Coke in 2002. (Jewel & Kalam, 2020). Coca-Cola Company made money from these goods. Coca-Cola Company also developed a new packaging concept, the Fridge Pack, in the same year. The Fridge Pack lined the cans in 2 by 6. The rate of consumption rises because of this. Many people are drawn to this packaging because of its uniqueness. In the same year, the Coca-Cola Company created a new packaging design called the Fridge Pack. The Fridge Pack used a 2 by 6 grid to line the cans. This increases the rate of consumption. A significant number of consumers have shown interest in the new packaging. Pricing Strategy The Coca-Cola Company's products are typically priced about the same as those of their rivals. In this situation, customers will try to purchase their goods because they are almost identical to those of competitors (Luco & Marshall, 2020). During selling times, Coca-Cola also marked down discount price items, which can draw many customers and help them raise profits. Furthermore, the Coca-Cola Corporation performed market studies. This is because they want to know how much their goods are worth and how much their buyers are willing to pay for them. As a result, they will try to improve themselves and meet the needs of their customers. Following that, Coca-Cola gained market share by using penetration pricing to gain a foothold in the