Coca-Cola Marketing Mix - Research Paper Example

Information) Coca Cola:  Marketing Mix Introduction Coca Cola is a US based multinational carbonated soft drink company headquartered at Atlanta. Although Coca Cola was invented by John Pemberton as a patent medicine, later on it was acquired by the businessman Asa Griggs Candler. Evidently, it was Candler’s marketing expertise that positioned the company at the top of the soft drink industry throughout the 20th century. This market dominance persuaded the company to introduce more cola products such as Coca Cola Vanilla and Coca Cola Cherry under the Coke brand. The company was selected as the world’s most valuable brand in the Interbrand’s best global brand 2011. This paper will analyze both the Coca Cola’s traditional marketing mix and the internet marketing mix with regard to its business operations in the UK market. Traditional Marketing Mix The traditional marketing mix includes four ‘P’s; three ‘P’s of service marketing, and four Cs. Four Ps Product While analyzing the company structure, it is clear that the power of Coke products raised the company to the top of the world’s soft drink industry. The company has been introducing timely changes in packaging. However, the company gives great emphasis on customer interests while introducing any change. For instance, Coca Cola introduced a new recipe for Coke in 1985 and it was rejected in the market. Subsequently, the company went back to the ‘classic’ Coke in order to better serve the customer needs (“Coke Lore..”). Currently, the company produces and markets over 2800 beverage products including Sprite, Fruitopia, and Fanta. The packaging size ranges from 300 mL to 2 litres. Surveys indicate that the Coke is one of the well known trade mark in the word. The company’s well brand image adds value to its market reputation. Price Coca Cola follows a competition based pricing strategy to maintain its market share since a large number of firms are operating under soft drink industry. Hence, the price of Coca Cola brands notably varies with time. However, it is identified that the company prices are readily accepted in the market due to its increased rate of demand. In addition, the company brings changes to its price structure in accordance with seasonal demand fluctuations. To illustrate, Coca Cola management sets higher prices for its drink products during the summer season and lowers the prices in the beginning of the winter season. Place Coca Cola is one of the leading global brands and hence it is easily available across the globe. Presently, Coca Cola products are distributed to more than 200 countries under nearly 450 brands (“The chronicle..”). The company specifically focuses on needs and preferences of each region or country before determining its operational strategy. Although the company has competitive brand features over its market rivals, it works with bottling companies and other retailers to effectively extend its products and services to different market segments. In addition, the Coca Cola has developed strict governing policies for all of its suppliers even though the entire distribution channel is not under the control and supervision of the company. This policy assists the company to ensure that its suppliers completely adhere to the company guidelines. Promotion Coca Cola maintains relationships with everyone who comes in contact with the company, and this strategy helps the company to promote its products to a diverse amount of people. The company’s promotional policies vary from market to market on the basis of cultural variances. To illustrate, the company’s ads in India involve film stars and cricket players. From the above analysis, it is clear that the four basic elements of marketing offer competitive advantages to the Coca Cola. A globally recognized brand (Coke) is the most potential strength of the company; and it contributes to the company’s promotional efforts. Three Ps People, process, and physical evidence constitute three P’s of service marketing. The company greatly motivates and empowers its employees to add value to its corporate objectives. Different supply chain activities and processes assist the company to effectively meet non-identical needs and requirements of its consumers. It has also developed extensive policies to meet the local competition. In short, these three P’s contribute to the company’s universal appeal, message, and image. Furthermore, these three elements have greatly assisted the Coca Cola to add value to its brand image and thereby to achieve a strong corporate identity. Unlike most other multinational corporations, Coca Cola management exceedingly emphasizes on the additional three ‘Ps’ of service marketing. Four Cs The four ‘Cs’ framework is more consumer-oriented and it comprises of consumer, cost, communication, and convenience. Consumer In order to effectively place Coke products in the UK market, the company has to specifically focus on customer needs other than emphasizing on product features and developments. This strategy would make communication more relationship-oriented. As reported, Coca Cola greatly meets consumer tastes and specifications regardless of all cultural barriers (The Irish Times). Cost This element reflects that marketers must consider what prices would be affordable to consumers rather than unilaterally pricing products to make more profit. Although Coca Cola follows a competition-based pricing approach, its price margins are readily accepted in the market. Hence, it is advisable for the company to pay special attention to the purchase based economic interests of the UK customers. Communication The Coca Cola management has to ensure that its promotional efforts are effectively communicated to the UK’s target audiences. As already discussed, the company’s promotion tactics are adequate enough to attract culturally different market segments. Hence, the company must identify what strategies would be applicable to effectively communicate with its UK market. Convenience Similarly, the organization must be cautious about establishing its stores and warehouses at potential destinations. The company’s selling units must be in places where they would attract greatest number of consumers. Internet Marketing Mix Obviously, the internet is changing the way a product/ or service is marketed to consumers. Since millions of people nowadays use internet, online marketing has broad scope for the future. E-product strategies Although intangibility is one of the major disadvantages of online marketing, this type of marketing assists user to immediately understand different features of product (E-marketing mix). The Coca Cola’s websites provide extensive information to visitors regarding its wide range of product lines. Since the UK e-commerce sector is growing at an extremely high rate, the Coca Cola management must develop more innovative strategies to present its product offer more attractively to its online customers. E-price strategies The concept of online marketing eliminated the difference in selling and distribution costs including store costs and staff costs (Learn Marketing). This situation assists the Coca Cola to offer its products at fairly low costs. Since the internet helps a user to choose the most cost effective product, it is advisable for the company to set prices which are more attractive to consumers. E-place strategies Under E-marketing, place strategy refers to locations where links are shown on other websites. Placing of links on famous websites and blogs may assist the company to increase its online sales volume. It is recommendable for the company to place its links on leading e-mail servers such as G-mail and yahoo. E-promotion strategies It seems that that Coca Cola has not developed effective E-promotion strategies yet. The company still depends on its brand image only. It is advisable for the company to make use of social networking sites such as facebook and twitter to position its products in the UK market. In addition, Web 2.0 applications are also recommendable for the company. Analysis From the above sessions, it is identified that the company has troubles in its internet marketing mix even though its traditional marketing mix has been well developed. It is obvious that the company cannot survive the intense modern business competition unless it adapts to the internet based business. Hence, it is recommendable for the company to redesign its internet marketing mix in order for positioning its products in the UK market. Conclusion In total, Coca Cola’s good brand image is one of the most competitive strengths of the company. The company gives great emphasis on customer tastes and specifications although cultural barriers sometimes become a threat. In addition, the company also focuses on other marketing elements such as people and processes. However, the organization has not been maintaining this competitiveness in E-marketing. This can be identified as a potential threat to the long term sustainability of the company. Hence, it is advisable for the company to restructure its internet marketing mix in order to dominate the UK soft drink market. Works Cited “Coke Lore: The real story of new coke.” The Coca-Cola Company. Heritage. (n.d). Web. 17 January 2012. “The chronicle of Coca-Cola: A global business.” The Coca-Cola Company. Heritage. (n.d). Web. 17 January 2012. The Irish Times: Business 2000. “Diet Coke.” (2000). Web. 17 January 2012. Learn Marketing. Net. “E-marketing mix.” (n.d). Web. 17 January 2012. Read More