Marketing Management at Coca-Cola - Case Study Example

Country Lecturer Module Reference Marketing Management Table of Contents Brief Analysis of the Main Points from Situation Analysis 3 Customer Analysis 3 Objective and Strategies 4 Corporate Objectives 4 Company strategy 5 Target Market 6 Entry Mode 6 Marketing Action Program for Marketing Mix 7 Monitoring and Evaluation 11 Recommendations 11 References 13 Bibliography 15 Appendices 16 Marketing Management Brief Analysis of the Main Points from Situation Analysis According to situational analysis, the government of North Korea offered extensive support and assistance over the production activities of Coca-Cola that proved effective for the organization. Along with this, the organization of Coca-Cola also offered a wide range of refreshing products at a quite cost, which is also another important factor for its success. And also the drinks are entirely healthy and hygienic not only for the individual of all age groups but also for the environment and society. Moreover, the promotions presented by the management of Coca-Cola for the drinks are also quite fascinating and effective for the individual that acted as a boon for the growth and development of the organization in the market of North Korea as compared to other rival players (The Coca-Cola Company, 2013). Customer Analysis From the below presented graph, it might be clearly described that, Coca-Cola mainly targets the young generation of the country of North Korea with extreme consciousness for the health and hygiene. Moreover, the refreshing drink of Coca-Cola is mainly preferred by the age groups within 15-35 years among others as it serves as the best companion in parties, festivals, occasions and many others. And also the drink might be consumed by the individual of high to medium income groups along with a medium life style. Thus, it might be depicted that the drinks of Coca-Cola is mainly targeted to all the individual of the society with a proposition of ‘Healthy and refreshing drink’ among other rival players (The Coca-Cola Company, 2013). Objective and Strategies The prime objective of the organization of Coca-Cola is to offer best quality of drinks to the customers so as to retain its prosperity and loyalty within their minds. Apart from this, the organization of Coca-Cola also desires to offer most advantageous and refreshing drink so as to make it a value-added product in the market among other rival products. Only then, the desire to enhance the brand image and reputation of the organization might get enhanced and effective in future era. And the market share and profit margin of the organization might also get enhanced to almost 25% as compared to other rivals (The Coca-Cola Company, 2013). In order to make the objectives of the organization successful, the management might desire to implement varied types of strategies such as competitive growth policies and expansion survival strategies. These strategies might prove effective for the organization thereby amplifying its brand value and market growth to a significant extent as compared to others. Along with this, by implementing expansion survival strategy, the organization might expand its products thereby improving the statistics of the organization in the market of North Korea. And it might also prove helpful in amplifying the brand value and market share in North Korean market (The Coca-Cola Company, 2013). Corporate Objectives The most essential requirement of any organization operating in this age is sustainability. This is because; it might help an organization to tackle varied types of challenging situations in an effective way as compared to many other existing rival players. Some of the objectives are stated below: Profit- presenting maximum extent of the returns to the shareholders thereby enhancing its foothold in the market of North Korea. Human resource- trained and experienced human resources need to be recruited within the organization so as to enhance the portfolio and reputation in North Korean market among other rivals (The Coca-Cola Company, 2013). Portfolio- presenting a wide range of product lines that might fulfil the taste and preferences of the target market customers as compared to other rival players. Partners- develop a winning network of partners so as to enhance the loyalty and brand image of the brand in North Korean market. Planet- in order to position the brand as the top-most global organization that offers high concentration over the environment of the country (The Coca-Cola Company, 2013). Company strategy In order to enhance the market position of the organization of Coca Cola in the market of North Korea, varied types of strategies need to be implemented. These are described below: Introduction of inventive sort of dinks that comprises of low sugar ingredients but highly healthy and hygienic in nature. So that, the level of loyalty and satisfaction of the health- conscious individual might get enhanced to a significant extent among others. Improvement of the corporate social responsibilities thereby amplifying the level of awareness for the society. Only then, the position and ranking of the organization within the North Korean market might get enhanced among others (The Coca-Cola Company, 2013). Enhancement of the marketing and promotional activities of the organization so as to improve the level of awareness of the products lines. Only then the total sale and net income of the organization might get enhanced in the market among other rival players. Thus, in order to generate a strong position and distinctiveness in the market of North Korea, the organization of Coca-Cola need to offer high level of concentration over the presentation of hygienic and sugar free products (The Coca-Cola Company, 2013). Target Market As the product-lines of the organization of Coca-Cola are entirely hygienic and healthy so they might be consumed by all the members of the society of North Korea. So, the management of Coca-Cola presented varied types of product lines such as diet coke, coca classic and sprite. And among them, diet coke might be consumed by the older individual within an age-group of 35-45 years and Coke Classic and Sprite by individual of 15-35 years among others. If the management of the organization segments the entire market of North Korea in the above mentioned way, then the sales target of 25% might be easily achieved. And the brand image and reputation of the organization in the market of North Korea might also be enhanced with a significant rate among others (The Coca-Cola Company, 2013). Entry Mode As the market of North Korea is extremely competitive, the most essential way to enter in such a market is licensing. This is because; in case of this entry method, a very small amount is required to be invested by the new entrant (Coca Cola) at the time of entering the new market. Moreover, the threats occurring due to political and financial instability might also be reduced to a certain extent as compared to other rival players. Moreover, this process might very easily circumvent the restrictions and laws of a foreign market as compared to other policies. Other than this, licensing is the most inexpensive way to enter a new market and to enhance its dominance and reputation among other rivals. It is also a favouring technique to enhance the financial resources, marketing strategies and many other essential requirements. So, the organization of Coca-Cola might very easily enter into markets of North Korea as compared to other rival players and enhance its position. And the profit margin and distinctiveness of the organization of Coca-Cola might be enhanced in the market thereby amplifying its level of sustainability in the future era (The Coca-Cola Company, 2013). Marketing Action Program for Marketing Mix Product- The organization of Coca-Cola would enter the market of North Korea with all its products such as coca-cola, thumps up, diet coke, sprite, limca, fanta, maaza, and minute maid with verities of flavours such as guava, pulpy orange, nimbu fresh, juicy orange, mixed fruit, 100% juice grape, 00% juice apple and many others in order to attract the customers of the market of North Korea. This might also help the organization of Coca-Cola to enhance its position and market share as compared to other rival players such as PepsiCo (The Coca-Cola Company, 2013). Source: (The Coca-Cola Company, 2013). Other than this, in order to survive in this competitive market, Coca-Cola desired to offer more attention over research and development process. The prime objective behind this is to invent varied types of innovative products in future so as to satisfy the changing taste and preference of the customers of North Korean market (Watters, 1978, p. 256-278). Therefore, keeping in mind both psychological and social needs of the customers the management of Coca-Cola introduced a new product named Bubble Tea beverage. It is a sort of green tea launched to offer a healthy and refreshing feeling to all. However, to promote the product, the organization might utilise the slogan, ‘Think Healthy and get the Buzz’. It might be done to retain its equity for presenting quality consistent, healthy and innovative drink at a lowest cost (The Coca-Cola Company, 2013). Price- The pricing strategy might be fixed on the basis of the demand and preferences of the customers and also on the rival products. So, the strategy needs to be competitive pricing strategy and penetration pricing strategy. Competitive pricing might be used in order to cope up with the product lines of PepsiCo effectively thereby amplifying its profit margin and reputation to a certain extent. And on the other hand, in order to enhance the customer demand and preferences, penetration pricing need to be followed. Only then, the organization of Coca-Cola might create a strong foothold in the regions of North Korea as compared to PepsiCo (Suk Hi Kim, 2003, p. 121-130). Apart from this, the financial position of the organization of Coca-Cola might also get enhanced thereby amplifying its equity and brand value in the market among other rivals. And the threat of new entrants might also get reduced significantly thereby enhancing its level of sustainability. Promotion- Promotion or advertising is also extremely essential in order to enhance the level of awareness of the customers of generation Y about the benefits of the drinks. Only then the customers might become interested in consuming and purchasing the products of Coca-Cola as compared to PepsiCo. This might proved effective for the organization of Coca-Cola to enhance its rate of market share by 30% as compared to its biggest rival PepsiCo. As the individual of generation Y comprise of the behaviour of multitasking so, they might be fascinated with the help of television advertisements, billboards, websites, media, events, co-branding trade shows, promotional events and many others. Each and every means used for the promotion of the products of Coca-Cola might present the message, ‘Healthy drink for All’. Other than this, in order to enhance the market demand and value of the innovative product (Bubble Tea beverage), free sample as well as discounted strategy might also be used. This is a customer oriented strategy that might surely prove effective for the organization of Coca-Cola to create a strong base of customers as compared to PepsiCo in the market of North Korea (Porter, 2008, p. 245-267). Place- All the products of Coca-Cola might be presented and distributed through supermarkets, convenience stores, discount stores, retail stores, direct sales and grocery stores. Only then, the demand and sale of the products of Coca-Cola might get enhanced thereby amplifying the total profitability and net income of the organization. Along with this, the craze for the products of Coca-Cola might also get enhanced to a significant extent as compared to other rival players such as PepsiCo in the market of North Korea. Apart from this, by following this strategy, the level of loyalty and satisfaction over the brand might get enhanced within the minds of the customers thereby reducing its risk of switchover costs. And as a result, the range of customers might also get improved, which is extremely essential for any organization to sustain in this competitive market among other rival players (Johansson, 1997, p. 345-456). Thus, this type of strategy is used as the concept of marketing or promotion has entirely changed in this age. Now a day, maximum extent of the products is sold on the basis of relationship marketing or integrated marketing, i.e. through customer preference or satisfaction ratio. If the customers are satisfied with the features or ingredients of the product, then its demand or sale might surely get enhanced as compared to others (Grant, 2005, p. 345-567). As a result, due to improvement of the brand image and reputation of the brand of Coca-Cola in the market of North Korea, the possibility of retention of the experienced employees within the organization might be increased. And many new experienced employees (referred from existing employees) might also desire to get recruited within the organization of Coca-Cola so as to become a part of such a unique organization. As a result, the rate of attrition might also get reduced to a significant extent among other rival players. And, the level of performance and productivity of the organization might get improved thereby reducing the rate of conflicts. As a result, a unique and uniform culture might be maintained within the organization that may amplify its efficiency within the market of North Korea. And this might enhance the supremacy of the organization of Coca-Cola in the market among other rivals (Porter, 1986, p. 356-456). Therefore, it might be depicted that at the time of entering a new market, marketing mix is the most essential requirement. If all the four or seven P’s might be presented in appropriate way, then the product or the organization might surely be positioned with a strong market share and brand value (Christensen, 2003, p. 345-367). Monitoring and Evaluation After monitoring and evaluating the above mentioned points, it might be analysed that in order to position the products of Coca-Cola in an effective way in the market of North Korea, promotion is the most essential requirement. This is because; if the customers become aware about the products and the underlining features, then its level of demand and sale might get enhanced to a significant extent among other rival players. Along with this, the market share and consistency of the brand of Coca Cola might also get enhanced to a certain extent thereby amplifying its uniqueness in the market. However, a huge amount of revenue is invested mainly in promotion, due to the innovative concept of integrated marketing or customer oriented promotion (Bell, 2003, p. 234-367). Recommendations After evaluating the entire scenario, it might be recommended that the management of Coca Cola need to offer high level of concentration over research and development. This is mainly to introduce inventive or differentiated product lines in the market so as to satisfy the needs and requirements of the customers. Only then the organization or the product lines of Coca Cola might become successful in creating a strong foothold in the market of North Korea among other rivals. And it might also help the organization to improve its reputation and efficiency in the market to a significant extent among others. This might also improve the range of customers and profitability of the organization in the market of North Korea thereby amplifying its rate of demand and image. Apart from this, the organization might also try to offer high concentration over promotional factors so as to amplify its awareness level. Only then, the range of customers might get enhanced along with its total sale and productivity. So, it might be stated that differentiation strategy and huge promotion might prove effective for the organization of Coca Cola, to generate its portfolio in the market of North Korea. And this strategy might also help the organization to retain its competitiveness and sustainability in the market among many other existing or new entrants in future era. Furthermore, it might also assist the organization to effectively cope up with the situational challenges such as recession. References Bell, L. (2003). The Story of Coca-Cola. New York: McGraw-Hill. Christensen, C. (2003). The Innovator’s Solution, Creating and Sustaining Successful Growth. Boston: Harvard Business School Press. Grant, R, M. (2005). Contemporary Strategy Analysis. London: Sage. Johansson, J, K. (1997). Global Marketing: Foreign Entry, Local Marketing, and Global Management. New York: McGraw-Hill. Porter, M, E. (1986). Competition in Global Industries. New York: Springer. Porter, M., E. (2008). Competitive Strategy: Techniques for Analyzing Industries and Competitors. New York: Springer. Suk Hi Kim. (2003). North Korea at a Crossroads. London: McFarland. The Coca-Cola Company. (2013). Coca-Cola Company. [Online] Available at: http://www.coca-colacompany.com/ [Accessed on 3 December, 2013]. The Coca-Cola Company. (2013). Coca-Cola Journey. [Online] Available at: http://www.coca-colacompany.com/brands/all/ [Accessed on 3 December, 2013]. The Coca-Cola Company. (2013). Food. [Online] Available at: http://www.coca-colacompany.com/food/ [Accessed on 3 December, 2013]. The Coca-Cola Company. (2013). Music. [Online] Available at: http://www.coca-colacompany.com/coca-cola-music/ [Accessed on 3 December, 2013]. The Coca-Cola Company. (2013). Opinions. [Online] Available at: http://www.coca-colacompany.com/opinions/ [Accessed on 3 December, 2013]. The Coca-Cola Company. (2013). Products. [Online] Available at: http://www.coca-cola.in/pages/landing/products.html [Accessed on 3 December, 2013]. The Coca-Cola Company. (2013). Stories. [Online] Available at: http://www.coca-colacompany.com/stories/ [Accessed on 3 December, 2013]. Watters, P. (1978). Coca-cola: an illustrated history. London: Sage. Bibliography Apte, G. (2004). Service Marketing. London: Sage. Appendices Promotional media Approximate cost (Korean $) Events 10,000 Co-branding 4,000 Trade shows 3,000 Links to TV 5,000 TV ads 5,000 Billboards 2,000 Websites 5,000 Media 4,000 Total expense 38,000 Read More