Marketing Plan Project: Coke Vita - Assignment Example

Contents Contents Marketing Plan Project 2 Business Mission ment 2 SWOT Analysis 2 Strengths 3 Weaknesses 4 Opportunities 4 Threats 4 Description of New Product Idea 5 Target Market Strategy 5 Marketing Mix Strategy 6 Product Strategy 6 Price Strategy 7 Place Strategy 7 Promotion Strategy 7 Conclusion 8 Works Cited 9 Marketing Plan Project Business Mission Statement Coca-Cola Company is the largest firm in the non-alcoholic beverage industry. Apart being the most valuable brand, Coca-Cola also prides itself in having over 500 brands worth around 20-billion. Some of the most recognizable brands include Coca-Cola, Diet Coke, Minute Maid, Dasani, Sprite, Fanta, and FUZE TEA. The company has a three-part mission statement that declares the company’s purpose. The mission statement is stated as “to refresh the world, to inspire moments of optimism and happiness, and to create value and make a difference” (Coca-Cola Company n.p.). From this mission statement, it is clear that the new product idea, Coke Vita, will fit within Coca-Cola’s purpose. Like the other refreshing brands in the company’s portfolio, Coke Vita will help the company in meeting its mission. SWOT Analysis When considering introducing a new product to the market, it is important to conduct a situational analysis. The situational analysis, a company examines its internal and external environments to determine internal capabilities as well as external opportunities and threats. To conduct situational analysis, one of the most widely used tools is the SWOT analysis, which examines the internal strengths and weaknesses as well as the external opportunities and threats (Lamb, Joe and Carl 23). The SWOT analysis of Coca-Cola Company is presented in table 1 below. Table 1: Coca-Cola Company SWOT Strengths Strong brand Wide range of products/brands Global distribution network Strong marketing Customer loyalty Large market share Weaknesses Limited healthy beverages Negative publicity Opportunities Growth in healthy beverages consumption New growth opportunities in developing countries New product introduction Threats Growing competition Growing health consciousness among consumers Water scarcity Strengths One of the greatest strengths is Coca-Cola’s strong brand. As of 2014, Coca-Cola was the third most valuable brand after Apple and Google with an estimated brand value of $61.6 billion (Unbottled Staff Para 1-3). The strong brand value is an internal strength because it enables the company to be more competitive. Another internal strength of the company is the wide range of products/brands portfolio that includes over 500 brands (Coca-Cola Company, 2015). This means that the company is able to serve various needs in the market with the different brands/products. Additionally, Coca-Cola has a global distribution network, which ensures that it is able to reach out to markets across the world. This extensive distribution network also ensures that the company’s sales are high. Moreover, Coca-Cola has a strong marketing strategy that includes the use of television commercials, event sponsorships, social media marketing, and use of celebrities. For example, Coca-Cola was one of the major sponsors of the FIFA world cup in 2014 and other major sporting events such as the Super Bowl. The Coca-Cola brand also enjoys customer loyalty. There are people who are very loyal to the company’s products. This ensures a stable market base. Finally, Coca-Cola’s market share is approximately 30 percent globally (Sure Dividend Para 1). This is the largest market share in the beverage industry, which gives the company a competitive advantage over its rivals. Weaknesses One of the main weaknesses of Coca-Cola Company is the limited number of healthy products. Although the company has been increasing its range of healthy beverages of late, the healthy beverages only account for a small percentage of the company’s entire brand portfolio. Additionally, Coca-Cola has suffered negative publicity in various parts of the world because of various claims including the use of dangerous chemicals and elements in its products. For example, in 2014, the company was sued for misleading consumers that carbonated water had not preservatives or artificial flavors (Weingarten 1).Such law suits taint the company’s image and reputation, which could lead to loss of consumers to competitors. Opportunities Coca-Cola Company has several opportunities in the market. First, there is a growing market potential for healthy beverages. The growing consciousness among consumers about healthy living is creating a growing opportunity that Coca-Cola can exploit. Second, there is more potential for growth in developing countries where beverage consumption is growing. Coca-Cola can expand and focus more on these growing markets to increase sales and market share as well as avoid intense competition in the current saturated markets. Finally, Coca-Cola can still introduce more products to the market. Introducing new products such as Coke Vita will create new opportunities for the company to meet new customer needs and increase sales. Threats The intense competition in the beverage industry is the greatest threat facing Coca-Cola Company. The main rival of Coca-Cola, PepsiCo, engages in an intense competition with Coca-Cola that threatens the sustainable success of the company. For example, Coca-Cola and PepsiCo have had several court battles that could threaten Coca-Cola’s success. Apart from PepsiCo, Coca-Cola also faces growing competition from other smaller and local beverage companies. If Coca-Cola does not adopt effective competitive strategies, the intense competition could lead to a loss in market share. Another threat to Coca-Cola is the growing health consciousness among people across the world. Although this is also an opportunity, it is a threat to Coca-Cola because of its wide range of carbonated beverages that are considered as posing health risks such as Coke, Fanta, and Sprite among others. It means that more people would opt for other healthy beverages leading to a drop in sales in these products. Finally, the problem of water scarcity across different parts of the world where Coca-Cola operates is a growing threat. Coca-Cola uses so much water in producing beverages and a scarcity of water implies that the company’s production may be adversely affected. Description of New Product Idea Coke Vita is a new product that complements Coke Diet. Coke Vita is also a healthy beverage that contains no additives that are considered as having health risks to consumers. The new product will come in 300ml and 500 ml bottles to cater for different consumer preferences. Target Market Strategy With the Coke Vita product, Coca-Cola Company should target healthy conscious consumers in their teenage to youth ages. Targeting healthy conscious consumers in their teenage and youth years is suitable because this age group provides the largest consumers of beverage. For example, people from this age group eat out more frequently than any other age group (International Markets Bureau 12). This implies that the consumers in these age bracket are likely to spend more on ready made products such as beverages. Additionally, the teenagers and youth form the largest population across the world. Therefore, targeting this age groups with the Coke Vita will be prudent in exploited the great potential. To target this market segment, Coca-Cola should adopt concentrated targeting, which entails selecting a single market niche for targeting with specific marketing communication. According to Lamb, Joe and Carl (275), concentrated marketing allows a firm to focus on the single market niche by understanding the needs and characteristics of the market and adopting marketing strategies and messages that address these needs and characteristics. Marketing Mix Strategy Product Strategy Coke Vita is a healthy non-carbonated drink. The product will come in two packages including the 300ml version and the 500 ml version. The two versions packages are necessary because of the different consumer preferences where some consumers may prefer the smaller 300ml package while others may prefer the larger 500ml package. Moreover, the two packages will be in line with Coca-Cola’s product offering where other products such as Coke, Fanta, Dasani, and Sprite come in different package sizes. To enhance the product appeal, Coke Vita will be packaged in a disposable tetra pack package that will be easy to dispose. This will enhance the environmental suitability of the product and address the growing concerns regarding plastic packaging. In terms of ingredients, Coke Vita will contain natural elements without any additives. The product will also come in different flavors including orange, mango, and pineapple to cater for different consumer needs and preferences. The unique selling proposition for Coke Vita is; “If you want to enjoy your youth, Coke Vita ensures you are always refreshed and healthy” Price Strategy Coke Vita will come with two price options. The 300ml package will be sold at $1.00 while the 500ml will be sold at $1.75. This price options are meant to cater for the average teenager or youth including those that are still dependent on their parents or guardians. The prices are affordable. Moreover, having two price options means that people who cannot afford the larger package can buy the smaller package. Moreover, this price range is not very different from that of Coke diet or other similar products in the market. Therefore, consumers will not perceive Coke Vita as an expensive or cheaper alternative, which would affect their purchasing decisions. Place Strategy Thanks to Coca-Cola’s extensive distribution network, Coke Vita will be distributed using the same distribution network. The product will be distributed globally. With regard to specific distribution channels, a wide range of distribution strategies will be used. Consumers can purchase Coke Vita in various retail stores, shops, restaurants, and Coca-Cola distribution outlets in their local areas. Ensuring that the product is available at the most convenient places is a key reason for adopting such a diverse distribution network. The main purpose of the distribution strategy is to ensure that consumers across the world, whether in urban or rural areas, are able to purchase Coke Vita conveniently. Promotion Strategy The company will adopt integrated marketing communication to market and advertise Coke Vita. As a new product, having a strong marketing and advertising strategy is absolutely necessary to create market awareness. Therefore, Coca-Cola will use both traditional and new media to market and promote Coke Vita. Considering the popularity of sports among teenagers and the youth, sports will form a major part of the promotion strategy. Coca-Cola will sponsor major sporting events where Coke Vita commercials and advertisements will feature prominently. Additionally, social media marketing will be widely used to market Coke Vita because many teenagers and youth are on social media. Therefore, it will be easier to reach them through the use of various social media platforms including YouTube, Facebook, and Twitter. However, to enhance the marketing message, similar marketing messages will be sent through the different marketing channels. This will reinforce the marketing message and enhance the effect of the integrated communication strategy. Conclusion This marketing plan for Coke Vita will be effective in introducing the product to the market and riving sales. The plan is well thought off and is informed by fundamental marketing principles such as situational analysis and marketing strategies. Additionally, the marketing plan takes into account important elements within Coca-Cola as well as the market. It takes advantage of the internal strengths and external opportunities for Coca-Cola Company. Considering the strong brand of Coca-Cola, the extensive distribution network, customer loyalty, and the opportunity to introduce healthy beverages, this marketing plan is based on real issues. If it is implemented well, there is no doubt that Coke Vita will become one of the most successful brands under the Coca-Cola brand portfolio. Works Cited Coca-Cola Company. “Our Company.” 2015. Web. 9 June 2015. International Markets Bureau. “Global Consumer Trends: Age Demographics.” 2012. Web. 9 June 2015. Lamb, Charles, Joe Hair and Carl McDaniel. Essentials of Marketing. 7th Ed. Mason, OH: Cengage Learning, 2011. Web. 9 June 2015. Sure Dividend. “Coca-Cola’s Growth Potential & Dividend Analysis.” 2014. Web. 9 June 2015. Unbottled Staff. “Coke Uses Innovation to Boost Brand Value, Retains No.3 Spot on Interbrand Ranking.” 2014. Web. 9 June 2015. Weingarten, Hemi. “Why is the Coca-Cola Company Being Sued Again.” 2014. Web. 9 June 2015. Read More