Marketing Strategy Analysis of Coca Cola

Topics: Marketing, Strategic management, Marketing plan Pages: 21 (3269 words) Published: April 7, 2010
TASK:

As a marketing consultant, working for Coca-Cola, you are required to provide them with a report based on your analysis of the situation highlighted in the attached report form the Guardian newspaper and your own research.

Your report should cover the following areas;

A marketing audit of their business

One new marketing objective for Coco-Cola. You should indicate the actions the company would have to undertake for the next twelve months to achieve this objective



INTRODUCTION

This report serves as a comprehensive marketing audit of Coca-Cola. This audit examines the internal and external operating environment, the varied strengths, weaknesses, and other market forces driving change at Coca-Cola. To effectively conduct this analysis several tools and techniques were used to thoroughly examine the environment. They include:

P.E.S.T and SPICC Analysis, which was used to examine the external environment.

4 P'S of Marketing and McKinsey 5 S which examine the internal environment, and;

S.W.O.T Analysis

Additionally consideration of the market size, structure and current trends were analysed to make informed recommendations.

AUDIT OBJECTIVES

The objective of this marketing audit is;

To review the current marketing environment of Coca-Cola and prepare recommendations to improve Coca-Cola's market share and competitive advantage.

Utilise the results of the audit to create at least one new marketing objective for Coca-Cola.



P.E.S.T. ANALYSIS

Having examined the political, economic, social and technological trends, useful information was generated for a strategy formulation, at Coca-Cola. The following represents a summary of the findings: _(REFER TO APPENDIX 1 FOR DEFINITION OF PEST ANALYSIS)._

POLITICAL

Manufacturers of soft drinks are increasingly guarded by legislation affecting health and safety. It is now mandatory that ingredients must be clearly labelled and an increasing amount of additives are not allowed. Coco- Cola must adapt to meet changing legislative requirements.

There has been increased focus on using international standards and benchmarks such as standards developed by the International Organisation for Standardisation(ISO).

ECONOMIC

Significant economic growth in non-traditional or developing markets has taken place, economies such as China, Russia and Latin America.

The economic environment impacts on the purchasing power of consumers. For example, when the average income decreases a consumer has less buying power and vice versa. Additionally, there have been increases in the minimum wages in several jurisdictions.

SOCIAL

The population is becoming more educated on health issues; greater emphasis is now placed on healthier lifestyles, increasing demand for, healthy beverages. Globally, the greatest concern to which the food and beverage industry must respond is the rise in obesity.

Additionally, issues of global warming and other environmental concerns are receiving more attention. Pressures for reducing waste and using environmentally friendly products give rise to the need for using more recyclable material.

Increasing consumer awareness of ethical responsibilities in manufacturing and distributing, food and beverages requires responsiveness by Coca-Cola.

TECHNOLOGICAL

Advancing technology has :

Paved the way for new techniques in microbiology, allowing opportunities, to develop previously difficult, new product formulations.

Conceived new ideas and methods in marketing and advertising that can capture wider markets, such as, e-marketing using the internet.

Changed business boundaries, making it more feasible and profitable for businesses to expand their operations globally.



SPICC ANALYSIS

The SPICC Analysis (suppliers, publics, intermediaries, competition and customers) analysed the company's immediate environment and their competitors. The following is a summary of the findings:

SUPPLIERS...

References: BOOKS:
Kotler et al (2003) _Principles of Marketing,_ 11th Edition: Upper Saddle River, NJ: Prentice Hall
Peter J.P et al (1998) _Consumer Behaviour and Marketing Strategy_, New York: McGraw Hl/Irwin
WEBSITES:
Coca-Cola (2005) _Interesting Facts about Coke_: (WWW) http:/www. cfo. com / article. cfm (10 May, 2006)
Coca-Cola (2005) _Annual Report Coca-Cola Enterprise Inc_
Coke Homepage (2005) _Interesting Coca- Cola Facts_ (WWW) http:/www.yip. org/coke/facts.htm (15 May, 2006)
Carmichael E
Chinsnall, P. (1995) _Strategic Business Marketing_, London: Pearson
Diamantopoulos, A et al
Dibb S, et al (2001) _The Marketing Casebook: Cases and_ _Concepts_: 2nd Edition: London Thomson Learning
Doyle P
Kotler et al (2003) _Principles of Marketing,_ 11th Edition: Upper Saddle River, NJ: Prentice Hall
Peter J.P et al (1998) _Consumer Behaviour and Marketing Strategy_, New York: McGraw Hl/Irwin
Rosenbloom, B (1999) _Marketing Channels: A Management View_, Forth Worth: Dryden
NEWSPAPER
Teather. D (2005) ' ' _Bubble burst for the real thing as PepsiCo oust Coke fro top spot_: _Emphasis on healthy living beats Coke ' fizz focus in battle of the colas_." New York: Guardian Newspaper Limited
WEBSITES
Coca-Cola (2005) _Interesting Facts about Coke_: (WWW) http:/www. cfo. com / article. cfm (10 May, 2006)
Coca-Cola (2005) _Annual Report Coca-Cola Enterprise Inc_
Coke Homepage (2005) _Interesting Coca- Cola Facts_ (WWW) http:/www.yip. org/coke/facts.htm (15 May, 2006)
Carmichael E
(16 May, 2006)
Centre for Management Research (2004) _Coco-Cola India in 2004: Marketing_ _Strategy_: (WWW) http://www.icmr.icfai.org/casestudies/catalouge/marketing (20 May, 2006)
News Target (2005) _Soft Drink Company Marketing Tactics: the expert sound_ _off_. (WWW) http://www.newstarget. Com/003914.html (20, May, 2006)
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