Marketing Concept of Coca Cola - Case Study Example

?Marketing Concept of Coca Cola Introduction Relationship marketing forms an integral part of the organization and requires cooperation and active participation from both the sides (Buttle, 2012). Relationship marketing includes a wide concept and encompasses wider elements like customer- marketer, marketer -supplier and buyer- seller relationship. Although, acquiring customer and retaining them is the top most priority in an organization it is believed that equal and active amount of participation from the customer’s side is also necessary for a sustainable relationship. Marketing concept includes the various customer relationship management (CRM) techniques which focus on improving the customer relations with the organization and has a far reaching implication. Technology facilitates smooth communication with the customers, suppliers and ensures that customer contact is easily done (Coca Cola, 2013f). The CRM techniques are effective only if the management applies technology and advertisement concepts usefully and gets the desired outcome. The marketing concepts will help an organization to identify the local competitors and also target their customers and manage their marketing campaigns effectively. The study will highlight the definition of marketing concepts and the various marketing methodologies utilized by Coca Cola to acquire and retain the customers. The author of the study will also deal with the various marketing strategies utilized by Coca Cola which helps directly in maintaining pleasant relationship with the customers and suppliers. Finally, the study will conclude several recommendations which can improve the existing customer relationship management system. Marketing Concept: Definitions & Techniques The various marketing methodologies utilized for achieving the targets and goals of the organization. The goals would be achieved through the identification of various resources and integration of various activities for satisfying customer requirements and wants. The concept evolved post World War II when it became difficult for the marketers to sell goods and services and generate revenue because the customers were extremely selective in choosing the product. Marketing concept revolves mainly around important elements like understanding customer wants, developing techniques in satisfying customer requirements and checking whether the customer wants are satisfied or not. The process of marketing concepts is initiated by conducting a market research which identifies customer wants. Although, the prime objective of the various marketing departments is to understand customer requirements but the tasks and responsibilities vary accordingly. The market concept varies accordingly and lays emphasis on devising techniques which help in gaining competitive advantage over its competitors. The selling involved in this stage is also referred to consultative selling and is revolved around developing customer orientation services. However, CRM is one of the most difficult ways of executing business activities which also leads to increase in the organizational output and also customer base (Buttle, 2012). The marketing concept is almost synonymous with the CRM techniques and methods which help in initiating and facilitating customer interaction and also developing the existing business process to a large extent (Buttle, 2012). Marketing data, software and varied other technologies play a pivotal role in conducting a market research and then developing strategies for satisfying the customer wants. It is also sometimes referred as the business strategy which is more or less multifunctional and affects the organization on the whole including departments of marketing, IT, Human Resource, management etc. These technologies help in identifying the competitor requirements and also assess it carefully and understand the competitor strategic positioning clearly. It included topics like opportunity and database management which helps in identification of opportunities and help in completion of the projects. Contact management on the other hand helps in the management of communication system and developing technologies which facilitates communication and contact with the customers. These databases enable the storage of data related to customer information which also includes automatic dialling. The CRM strategy is responsible for the enhancement of the technical and non technical skills of the employees, outlook of the individuals (Ed, 2008). Strategic CRM techniques are implemented which are more customer centric and effective implementation brings about positive changes in the organization. The societal marketing concept helps in determining the organizational needs, interests and wants of the target markets and also to deliver the desired customer satisfaction effectively to gain competitive advantage over its competitors. These CRM techniques help in assisting the organization to improve the relationships and development of formalized relationship with the customers and suppliers to improve the existing process and procedures. The marketing concepts should be applied effectively so that it enhances the customer and society well being. Background of the Company: Coca Cola Ltd Coca Cola is one of the leading carbonated beverage companies of the world headquartered at Georgia. The company manufactures and sells carbonated beverages throughout the countries of the world except North Korea and Cuba. The cola drink was initially formed by John Pemberton in the year 1884 and by the year 1886 the company had sold 3 versions of cola drinks to individual business units (Coca Cola, 2013d). The company specializes in producing 3500 products worldwide and has been successful in distributing the products in more than 200 countries worldwide. The objective of the company is to offer the employees a congenial atmosphere to work and customers a wide range of drinks which can satisfy their needs. Some of the main objectives of the company are to lay emphasis on the needs of the customers and develop innovative products (Coca Cola, 2013l). Presently, the company offers 3500 products in more than 200 countries (Coca Cola, 2013a). The company tries innovative methods to develop core products which can suit the taste bud of the customers and provide satisfaction (Coca Cola, 2013b). Presently, the company manufactures carbonated beverages in various flavours, juices, bottled water and sports drink (Coca Cola, 2013h). The vision of the company is to develop a framework which serves purposeful and acts a guide to the employers which helps in delivering superior performance. The mission of the company is to develop standards which develops and declares the purpose of the company. Relevance of Marketing Concept in Coca Cola Ltd Market Planning occurs in various stages and helps in the development of plans which also helps in the identification of customer need and requirements. The prime objective of market planning is to identify the various customer segments and develop products as per customer specification. After manufacturing cola beverages for 70 years in a singular flavour, the company decided to develop drinks in varied flavours. This decision was taken to yield profits from more than a singular segment and also diversify their risks. The company started manufacturing juices and selling it under the brand name Minute Maid to portray the brand as a health beverage manufacturer. This decision was taken because the company was accused of being a significant contributor for increasing obesity and other health concerns (Coca Cola, 2013c). During1980’s the company started manufacturing sugar free and low sugar content drinks under the brand names “Diet Coke”. This decision was made to strengthen the brand image of the company. Mr. Roberto C. Goizueta also introduced a drink with a relatively new flavour under a new formula which was popularly termed as “New Coke”. However, coke started manufacturing drinks under the original formula to regain the customer and critic confidence. These were some of the important product development strategies which were undertaken to satisfy customer requirements and had the capability of adapting to the changing marketing environment. With the changing marketing environment the company also introduced several changes in their promotional strategies. The company first started advertising about its product in television in the year 1970 and then later it started promoting the products through various means like online advertising, direct marketing, social media etc (Coca Cola, 2013j). The company maintains excellent relationship with its customers and has also developed a habit of updating its follower base through its official website. The company has been engaged in several product development techniques which counter the growing concerns of obesity and various other health problems. One of the major marketing strategies would be the bottling procedure of the company which would involve the development of market positioning strategy which focuses on the development of a beverage that spans the entire spectrum of the occasions and tastes (Coca Cola, 2013k). The company continuously strives for high quality product development procedure which includes the production of beverages in varied flavours and different sizes which includes Standard Size Returnable Bottle, Litter Returnable Bottle, No Return Bottle, PET bottles of 1.5 litres and can sizes of 330 ml (Coca Cola, 2013g). The cola beverage is available in various packaging modes which include 24 regular bottles, 6 bottle packs of 1.5 pets, 12 bottles in packs of disposable bottle and 24 cans in one carton pack (Coca Cola, 2013e). Apart from the state of the art bottling procedure system, the company develops a unique system which helps in bulk production on a global scale. Presently, the company has more than 250 bottling partners worldwide (Coca Cola, 2013e).The unique production system also lays emphasis on the production system which also helps in the sustainment of the environment. The Coca Cola system works closely with the bottling units and develops several strategies for the successful merchandise, manufacturing, packaging and distribution of branded beverages to the customers and vending partners. The Coca Cola stem wide performance has enabled the development of high standards which are also known as high performance indicators which helps in the production of high quality beverages. It had also established the CCR system which helps in the development of strategies which would be beneficial for the strategic advancement in the partnership. Recycling cans and bottles is one of the topmost priorities in the organization and the company has developed several initiatives for production of items and also maintaining the environment. Companies which undertake corporate social responsibility activities are very much appreciated by the common people hence; Coca Cola has undertaken several initiatives with popular artist to promote environment protection. Manufacturing products and also maintaining the environment is one of the biggest initiatives taken to satisfy the customer requirements and wants. The EKOCYCLE brand initiative was one of the biggest environmental initiative was taken the management of Coca Cola which laid emphasis on the education of customers and seek an inspirational lifestyle (Coca Cola, 2013m). The initiative was undertaken for facilitating the process of recycling and also influencing the purchasing decisions and also helps in zero waste. The company has undertaken various other initiatives like water stewardship, healthy lifestyle programs which help in the betterment of the society and the community. Through various product development initiatives has undertaken programs for the development of beverages in cola, cherry and vanilla flavour. Apart from beverages the company has also undertaken various product development initiatives which include the manufacturing of healthy snacks for the health benefits of the common people. The bottling operational units were successful in hygienic packaging of the products and supplying it leading retail outlets for industrial and private consumption purposes (Coca Cola, 2013i). This bottling unit also helps in supplying the beverages to leading retail outlets and also to corporate customers. Major customer segmentation was performed and the common people were categorized based on age, habits, lifestyle etc. Recommendations & Conclusion Although, it is observed that the marketing strategy adopted by Coca Cola is usually very distinctive from its competitors and have helped in removing the organizational barriers and problems the company has not been able to retain its position as the market leader in the beverage market. These distinctive marketing strategies have helped the company to yield profits in there major segments which include Latin America, South Asia and Pacific Region. Ethical and accurate market planning has enabled in addressing marketing problems and also establishment of various codes of conducts that helps in proper product development and also enhancement of brand image of the company. Thus, it is observed that Customer Relationship Management techniques help in engaging customers in their process and providing them with personalized and differentiated experiences worldwide. Reference List Buttle, F., 2012. Customer relationship management. London: Routledge. Coca Cola, 2013a. Our Company [online] Available at: < http://www.coca-colacompany.com/our-company/ > [Accessed 18 June 2013]. Coca Cola, 2013b. Mission, Vision & Values [online] Available at: < http://www.coca-colacompany.com/our-company/mission-vision-values > [Accessed 18 June 2013]. Coca Cola, 2013c. Coke Triple Play [online] Available at: < http://www.coca-colacompany.com/coming-together/ > [Accessed 18 June 2013]. Coca Cola, 2013d. Heritage Timeline [online] Available at: < http://heritage.coca-cola.com/ > [Accessed 18 June 2013]. Coca Cola, 2013e. Annual Report [online] Available at: < http://www.coca-colacompany.com/annual-review/2012/pdf/TCCC_2012_Annual_Review.pdf > [Accessed 18 June 2013]. Coca Cola, 2013f. Suppliers [online] Available at: < http://www.coca-colacompany.com/our-company/suppliers/ > [Accessed 18 June 2013]. Coca Cola, 2013g. The Coca-Cola System [online] Available at: < http://www.coca-colacompany.com/our-company/the-coca-cola-system > [Accessed 18 June 2013]. Coca Cola, 2013h. Brands [online] Available at: < http://www.coca-colacompany.com/brands/the-coca-cola-company/ > [Accessed 18 June 2013]. Coca Cola, 2013i. Product Safety & Organization [online] Available at: < http://www.coca-colacompany.com/sustainabilityreport/me/product-safety-and-quality.html > [Accessed 18 June 2013]. Coca Cola, 2013j. Coca Cola on Social [online] Available at: < http://www.coca-colacompany.com/our-company/workplace-overview > [Accessed 18 June 2013]. Coca Cola, 2013k. The Coca Cola System [online] Available at: < http://www.coca-colacompany.com/our-company/the-coca-cola-system > [Accessed 18 June 2013]. Coca Cola, 2013l. Innovation [online] Available at: < http://www.coca-colacompany.com/topics/innovation > [Accessed 18 June 2013]. Coca Cola, 2013m. Recycling Fashion: Will.i.am, Coca-Cola launch new brand [online] Available at: < http://www.coca-colacompany.com/press-center/press-releases/recycling-fashion-william-coca-cola-launch-new-brand > [Accessed 18 June 2013]. Ed, P., 2008. Customer relationship management. New Delhi: Pearson Education India. Read More