Preparing the Marketing Audit for Market Entry - Coca Cola Company - Essay Example

? Preparing the Marketing Audit for market Entry Table of Contents Executive Summary 3 Introduction 3 Rationale for chosen scenario 4 PESTEL Analysis4 Porter’s Five Force Analysis 6 3Cs Framework 8 McKinsey’s 7S Framework 9 5Ms Model 11 4Ps of Marketing Mix 13 SWOT Analysis 14 Conclusion and Recommendation 15 References 17 Appendices 19 Executive Summary Global business environment has become highly competitive as several leading organizations within similar industry are implementing effective unique strategies in the business process in order to achieve potential competitive advantages. The following marketing audit report is all about a FMCG healthy soft drink and fruit juice brand named Minute maid. The coca Cola Company is the parent organization of Minute Maid. The organization decided to introduce Minute maid in potential England market due to favourable external environmental aspects. It is true that Minute maid may face problems initially due to lack of brand awareness. But, effective brand value and strong customer base of Coca Cola can help Minute maid to attract the target customers. This report will recommend some valuable marketing and business operation strategies for the Coca Cola Company in order to implement them for the future growth of Minute maid in England. Introduction This report is a marketing audit including an in-detailed internal and external marketing environment analysis of an organization. The report will conduct a marketing audit for the Coca Cola Company. Minute Maid is one of the popular product lines of beverages of Coca Cola Company. This particular product line is not available in England. The report will conduct a market entry and marketing analysis of Minute Maid in the potential England market. Minute Maid is one of the popular product lines of beverages, generally associated with orange juice or lemonades. The Coca Cola Company is the parent organization of Minute Maid. The product is considered as leading and largest marketer of fruit juices around the globe. This particular product has strong international presence (Lowe, 2007, p.57). However, Minute Maid is not available in England. This report will conduct a marketing audit of Minute Maid fruit juices for England market. Rationale for chosen scenario England is a potential market for the FMCG goods. Moreover, demand for fruit juices is significantly increasing among the people of England. On the other hand, Minute Maid earned huge popularity and preference among the people around the globe due to is quality and characteristics (Lorat, 2009, p.23). Now-a-days, people are becoming health conscious. In addition to this, demand for healthy fruit juices is increasing among health conscious people. Therefore, it would be effective if the Coca Cola Company choose to introduce Minute Maid in potential England market (McDonald, 2007, p.39). PESTEL Analysis This external environmental analytical tool will help the organization to determine the future impact of external environmental factors on the performance of Minute Maid in England. Political England is politically stable country. The government of the country is trying to motivate the food and beverage organizations to produce and supply healthy food items in order to secure good health and safety of people (Bradley, 2006, p.90). Therefore, the government is trying to develop several legislations for the organizations to force them to produce healthy food products. Economical Recent financial crisis and economic slowdown affected the purchasing power of people (Cheverton, 2005, p.76). It is important for the organization to implement economic pricing strategy for Minute Maid in order to support the purchasing power of common people. Social Demand for high carbonated soft drink food products are decreasing due to several health issues and negative consequences (Dawson, 2000, p.71). People are trying to shift from high carbonated soft drink products to the healthy fruit juices. Technological England is technologically developed country (Dobkin, 2007, p.82). The Coca Cola Company is the parent organization of Minute Maid. The organization used to implement advanced technology in manufacturing and supply chain management process (Easey, 2009, p.97). In addition to this, several required advanced technological options are available in England that can help Minute Maid to gain potential competitive advantages (Katie, 2013, p.29). Legal Government of England developed several regulatory laws and regulation for soft drink organizations (Goldsmith, 2012, p.63). The organization has to consider developed employment laws, supply chain regulations, environmental policies and product development laws regarding manufacturing and marketing of Minute Maid (Keegan, 2002, p.17). Environmental Coca Cola has to maintain developed industry standards in each and every business process in order to ensure environmental sustainability (Leadley, 2004, p.88). The organization should reduce the level of carbon emission in the supply chain management process of Minute Maid to avoid several environmental and legal issues (Lamcaster, 2010, p.12). Porter’s Five Force Analysis Porter’s Five Force Model is an effective marketing analytical tool that helps an organization to determine the impact of industry competition on its overall business performance. Buyer’s Power Recent financial crisis and economic slowdown affected the purchasing power of people. In addition to this several leading organizations are trying to implement competitive pricing strategy to achieve potential competitive advantages and establish potential customer base (Ottman, 2011, 62). Looking into the above aspects, it can be stated that the threat of buyer’s bargaining power is high for Minute Maid. Supplier’s Power Availability of huge number of suppliers helped the Coca Cola Company to get effective suppliers in limited cost. Each and every supplier tries to get a business deal from the leading organizations (McLesh, 2010, p.69). Looking into these above aspects it can be stated that the threat of suppliers’ bargaining power is low for Minute Maid. Substitute’s Threat Threat of substitute is quite high for minute maid as several leading organizations are trying to introduce healthy energy drinks and other drinks (Ranchood, 2007, p.58). It is important for the organization to develop effective marketing strategies and control the quality of Minute Maid in order to attract the health conscious target customers. New Entrant’s Threat Threat of new entrant is low for the organization as it is difficult for the new organizations to grab the market share of the Coca Cola Company in England. Each and every leading organization is trying to implement unique business strategies in the business processes in order to achieve competitive advantages. It is very much difficult for new organizations to grab the market share of the leading organizations like the Coca Cola Company (Rogers, 2001, p.13). In addition to this, several legal and other political barriers can make it difficult for the new players to compete with the leading organizations in the saturated England market. Degree of Industry Rivalry England health drink or soft drink industry is highly competitive as several leading organizations are competing with each other in order to develop potential target client base and maximize business profit (Ryan, 2012, p.46). Several leading soft drink manufacturing organizations are trying to introduce healthy fruit juices and healthy lemonade drinks (Ulph, 2011, p.99). Looking into these above aspects, it can be stated that the degree of industry rivalry is very high for Minute Maid (Figure 1). 3Cs Framework 3Cs framework of marketing is a strategic business model that offers a strategic look at the required factors for success. In the development of a business strategy, organizations used to focus on three major players according to the 3Cs model. Customers, corporation and competitors are the major components of 3Cs model. Customers The taste and preference of the people of England has changed. Now-a-days, people are trying to consume healthy fruit juices and soft drinks. It is true that major soft drinks of the Coca Cola Company is full of calorie and are considered as high carbonated drink. This aspect is affecting the brand image of the organization. Introduction of Minute Maid in England can resolve these issues. Health conscious people are the major target customers of Minute Maid. The Coca Cola Company can regain its brand value and can attract these target customer groups by introducing Minute Maid in England. Corporation The Coca Cola Company is the parent organization of Minute Maid. Minute Maid will face limited challenges during initial point of time due to the strong organizational culture of the Coca Cola Company. In addition to this, Minute Maid can have access to the assets of its parent company. It is important for a new brand in a particular market to have significant access to the technological resources, human resources and supply chain network. These favourable aspects will help Minute Maid to maintain an effective business performance in England. Competitors England healthy drink and fruit juice industry is highly competitive. XXX, Red Bull, Gatorade and other types of healthy fruit juices are considered as major competitors of Minute maid. PepsiCo is considered as the biggest rival of the Coca Cola Company (Siegel, 2008, p.9). PepsiCo is also trying to introduce health soft drink items in order to motivate this health conscious target customer segment. On the other hand, lack of brand awareness among the target customers is the major weakness of Minute Maid. Therefore, it is necessary for Minute Maid to use unique marketing and business operation tool in order to achieve potential competitive advantages. McKinsey’s 7S Framework Strategy, systems, structure, skills, staff, style and shared values are the seven elements of McKinsey’s 7S model (Figure 2). Strategy The organization should focus on promotion and pricing strategy to gain competitive advantages as Minute Maid going to launch in UK for first time. Minute Maid is an umbrella branding of the Coca Cola Company. The organization implemented several unique strategies throughout the years. In addition to this, the organization’s long term goal and vision helped to gain huge brand loyalty. The organization should maintain the similar for Minute Maid in future. Structure The Coca Cola Company should follow same organizational structure in the product development and marketing process of Minute Maid (Wilson, 2011, p.79). The organization should maintain formal organization structure and top-down communication process to ensure discipline in the reporting lines and organizational communication process for Minute Maid. Systems The organization should review daily marketing activities to ensure better performance and outcome. Minute Maid is considered as a FMCG products. The organization should follow retail business model for selling Minute maid. The marketing executives and distributer network of the Coca Cola Company should motivate the retailers to influence the end customers to buy Minute maid. This system will help Minute maid to communicate effectively with the end customers. Skills The management should organize effective training and development programmes for the employees to ensure high skills of employees (Wilson, 2005, p.33). Employees are the major growth drivers of Coca Cola. In addition to this, the Coca Cola Company should review each and every instruments and processes that will be implemented in the business process of Minute Maid in order to ensure high skills and competencies. Staff The Coca Cola Company should try to recruit skilled employees and marketing executives to promote the products effectively among target customers. In addition to this, the organization should take care of the motivation level of employees. Effective performance appraisal and significant compensation distribution process will help the employees to perform effectively. Last but not the least; effective training and development programme for the employees can increase the efficiency of organization’s human resource management. Style The marketing managers should follow supportive leadership style to motivate employees to perform effectively. Supportive leadership style will help the managers to set some valuable examples before the employees. In addition to this, the managers should take care of the professional and personal needs of employees. It will help both employees and leaders of the organization. The motivated employees will always try to use their entire skills and competencies to achieve positive results. It is only possible through employee centric leadership approaches and skills. Shared Values The quality and effective performance of products need to motivate the stakeholders to take interest in the marketing and decision making strategies regarding Minute Maid. It is important for the organization to justify its corporate values that are committed to the stakeholders, community and customers. In addition to this, it is important for the management to provide effective orientation and training to employees in the manufacturing and distribution process of Minute maid to learn about organizational and corporate values. 5Ms Model 5Ms model is also known as the Media mix model. There are five elements of 5Ms model, such as Markets, Money, Media, Methodology and Mechanics. Market Health conscious soft drinks lovers are the major target customers. The Coca Cola Company should target all regional customers for Minute Maid. It is clear from above discussion that the people in England is trying to consume health soft drinks and fruit juices. Therefore, it is necessary for the Coca Cola Company to conduct a market research for Minute maid in England in order to position its product according to the needs of target customers. Money 15-20 percent of the profit margin should be utilized in each and every marketing activity of Minute Maid. It is necessary for an organization to spend a significant amount of capital for the promotional purpose. As Minute maid is considered as a FMCG product, effective and unique marketing and promotion is highly required. The Coca Cola Company can use some percentage of business profit in the promotion of Minute Maid as Coca Cola Company is financially stable organization. Moment Timing is highly necessary for a product to enter in an emerging market place. The demand for healthy soft drinks is significantly growing among the target customers. Therefore, it is the right time for the organization to deliver the message about new brand as too much time consumption in decision making process can result market saturation. Methodology Organization should highly focus on supply chain and promotion of Minute Maid for England market. The Coca Cola Company is providing differentiated product line. Strong brand value and high product quality will help to create effective brand value. The Coca Cola Company should adopt differentiated marketing strategy to ensure significant brand and product awareness. The organization should target health programmes and events to make the target customers aware about Minute Maid. Media Online, digital and print medium needs to be utilized in marketing of Minute Maid. The Coca Cola Company should use all forms of media agencies to market Minute Maid. The organization already has a strong external and internal media agency channel in England. This effective reach to the marketing agencies will help the Coca Cola Company to create significant brand awareness of Minute maid among different target customer groups. 4Ps of Marketing Mix Marketing Mix is an important strategic marketing tool. Following 4Ps of marketing mix will help the Coca Cola Company to develop effective product, distribution, pricing and promotional marketing strategies for Minute Maid. Product Minute Maid is the successful brand extension of the Coca Cola Company. Minute Maid fruit juices are highly popular among the global people. Lemonades and pure and fresh fruit juices are the major product lines of Minute Maid. Health conscious customers who love to consume healthy fruit juices are the major target customers of Minute Maid (Figure 3). Price The organization used economic pricing strategy in different countries for this product. It is true that England fruit juices and soft drink industry is highly competitive. Therefore, it is important for the Coca Cola Company to implement competitive pricing strategy with the high quality of products in order to gain potential competitive advantages (Viardot, 2004, p.95). Place: Distribution Coca Cola Company should use own distribution and supply chain network for Minute maid. In addition to this, the organization should in corporate forward and backward integration in the supply chain network to reduce supply chain operational cost. Promotion Promotion is considered as an effective marketing communication tool. It is highly important for the organization to develop effective promotional strategy for Minute Maid in England market. Online and social media promotional activities will help the organization to create huge brand awareness among the people (Wylie, 2006, p.41). In addition to this, advertisements on health magazines, news papers and sports magazines will help the organization top attract the target customers. Last but not the least; effective digital medium promotional strategies will help the organization to attract kinds and children towards these healthy fruit juices. SWOT Analysis SWOT analysis is an effective strategic marketing tool that helps an organization to determine its internal strengths, weaknesses and external opportunities, threats. Following table is the SWOT analysis of Minute maid in England. Strengths Strong Brand popularity of Coca Cola in England. Effective product quality of Minute Maid. Access to existing supply chain network of the Coca Cola Company (Winston, 2013, p.73). Strong R&D and quality control department of the Coca Cola Company will help to ensure the quality of products. Weaknesses Lack of brand awareness of Minute Maid is the major and only weakness. Opportunities Demand for healthy fruit juice products. Focus on each and every target customer segment. Try to reduce business operation cost in order to implement economic pricing strategy. Threats Intense market competition. Threat of existing substitute products and environmental threats. Legal and political issues can hamper the business performance of Minute Maid. Conclusion and Recommendation It is clear from above discussion that it is important for the Coca Cola Company to develop effective marketing strategy for Minute Maid in England. England is potential market for these types of product lines. The demand for healthy fruit juices is highly increasing among the healthy conscious customers. It is true that the industry is highly competitive. Therefore it is important for the organization to develop potential marketing strategies for Minute Maid to gain competitive advantages. It is true that the social environment is favourable for Minute Maid. The organization has to consider effective business operation sustainability in order to overcome the external challenges. Following recommendation plans will help the organization to overcome future threats. The Coca Cola Company should implement effective promotional strategies to create effective product awareness among the target customers. The organization should decentralize its production and supply chain management process to ensure significant access to supply chain network. The organization should ensure low business operation cost to implement economic pricing strategy of products. It will help to support the affected purchasing power of people and gain potential competitive advantages. Last but not the least; the organization should try to review the strategies after a certain period of time. References Bradley, F., 2005. International marketing Strategy. London: Routledge. Cheverton, P., 2005. Key marketing Skills. London: Kogan Page. Dawson, W., 2000. Marketing the Arts. London: Routledge. Dobkin, J., 2007. Direct Marketing Strategies. London: FT Press. Easey, M., 2009. FMCG Marketing. New Jersey: Pearson. Goldsmith, R., 2012. Strategic marketing. London: Routledge. Katie, J., 2013. Critical Marketing Audit. Munich: GRIN Verlag. Keegan, W., 2002. Marketing Plans that Work. London: Routledge. Lancaster, G., 2010. Essentials of marketing. New Jersey: Pearson. Leadley, P., 2004. Marketing: Essential Principles. New Jersey: Pearson. Lorat, N., 2009. Market Audit and Analysis. New York: Springer. Lowe, R., 2007. International marketing strategy. London: Sage. McDonald, M., 2007. Malcom McDonald on Marketing Planning. London: Routledge. McLesh, B., 2010. Marketing Strategies. New York: Springer. Ottman, J., 2011. The New Rules of Green Marketing. London: Kogan Page. Ranchood, A., 2007. Marketing Strategies. New Jersey: Pearson. Rogers, S., 2001. Marketing Strategies, Tactics and Techniques. London: Sage. Ryan, D., 2012. Understanding Digital Marketing. London: Routledge. Siegel, M., 2008. Marketingt Public Health. New York: McGraw-Hill. Ulph, C., 2011. Marketing Strategies. New York: Springer. Viardot, E., 2004. Successful Marketing Strategies. New York: CRC Press. Wilson, A., 2005. Marketing Audit Handbook. London: Routledge. Wilson, H., 2011. Marketing Plans. London: Sage. Winston, W., 2013. Environmental Marketing. New Jersey: John Wiley & Sons. Wylie, K., 2006. Current and past marketing Strategies. Stamford: Cengage Learning. Appendices Figure 1: Porter’s Five Force Model Figure 2: 7S Framework Figure 3: 4Ps Framework of marketing Mix Read More