The principal activities of the Coca-Cola Company are the manufacture, distribution and marketing of nonalcoholic beverage concentrates and syrups. The Group owns or licenses and markets more than 500 nonalcoholic beverage brands, primarily sparkling beverages. Coca-cola also distributes a variety of still beverages, such as waters, enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, and energy and sports drinks. Coca-Cola manufactures, or authorizes bottling partners to manufacture, fountain syrups, which it sells to fountain retailers, such as restaurants and convenience stores. Fountain retailers use the fountain syrups to produce finished beverages for immediate consumption.
Coca-Cola focuses on needs of their consumers, customers and franchise partners. By getting out into the market and observing customer behavior, the Coca-Cola team endeavors to possess a world view and become “the” brand while inspiring optimism and fun. In an effort to become more environmental friendly, Cola-Cola has taken great strides in new marketing endeavors.
When establishing a new marketing plan, every aspect of the plan must be critically examined and thoroughly researched. This consists of examining market research, auditing the business and researching current environmental analysis. By carefully scrutinizing the soft drink industry, Coca Cola increases its possibilities for success in the market. Once Coca Cola has carefully analyzed the internal and external business environment and critically examined the industry in general, the most suitable marketing strategies will be selected and these strategies will be administered by effectively and continually monitoring external threats and opportunities and revising internal efficiency procedures.
A key factor in Coca Cola's success is its power in the industry. An assessment of the marketing environment shows that it has major competitors such as Pepsi and Virgin Cola, but Coca-cola owns the vast majority of soft drink selection. The company owns Schweppes, Oasis, 5 alive, Kea Oar, Fanta, Lilt, Dr Pepper, Sprite and the sports drink Powerade. This position is good for the Coke but reduces the buying power of consumers since there is less choice. This gives greater selling power to Coca Cola.
With this power hat Coca Cola can hurt any new competitors coming into the market because it has so many brands. A new company entering the market would have to spend billions on marketing a new product to compete against Coca Cola. With its large profits, Coca Cola can further reduce prices, making competition for new competitor much more difficult.
An assessment of the target market for Coke would be that their beverages are generally for all consumers. However, there are some brands, which target specific consumers. The target market has been defined as multi-cultural youth of age 13 – 24. Coca cola targets multi-cultural youth by identifying common youth struggles and positioning Coca-Cola as a unifying element in a diverse youth culture.
An assessment of current marketing objectives for Coca-cola would show a targeted gain achieving 60% of the total market for soft drink industry by December 2010. Coca also intends to achieve a 20% return on capital employed by December 2010. Increasing the awareness of the product on the market while developing an environmentally friendly “Green”image will help it win the marketing war with its competitors. SWOT Analysis:
Strengths: Coca-Cola has been a complex part of world culture for a very long time. The Coca-Cola image is displayed on T-shirts, hats, and collectible memorabilia. This extremely recognizable branding is one of Coca-Cola's greatest strengths. "Enjoyed more than 685 million times a day around the world” Coca-Cola stands as a simple, yet powerful symbol of quality and enjoyment. Additionally, Coca-Cola's bottling system is one of their greatest...