Coca Cola: Marketing Plan - Case Study Example

Coca Cola – marketing plan Introduction Coca Cola has become one of the best-known global brands. The birth of the coveted brand took place in Atlanta in Georgia in 1886. The discoverer of the drink was John Pemberton who was a pharmacist. The company assumed the modern stature in the first half of the 20th century when the bottling of the drinks began. It has now assumed cult status with the help of marketing and the promotional activities and with the help of the proper merchandising. Coca Cola has been popular by sponsoring different sporting events and sports teams. One of the most important associations of the company was with the Olympics from the year 1928. The company innovated the idea of supplying the viewers of the sporting events with the drink, that increased the visibility of the product, and the company became global. (The chronicle of Coca Cola, n.d.). The paper will look into the matter of the sponsorship of the brand in the 2012 Olympics. Environmental factors of the company The company operates in the non-alcoholic beverages industry. It is one of the leading companies in the segment and at present, it has presence in most of the countries in the globe. The headquarter of the company is in Atlanta, Georgia but the company has expanded its operations in most of the countries of the world. However, 74% of the products of the company are sold outside the country. The SWOT and PEST analysis would be helpful in analyzing the environmental factors of the company. (SWOT analysis of Coca Cola, n.d.) SWOT analysis Strengths: The reputation of the company and the globalization of the business is the core strength of the company. The products of the company are popular and it has operations all over the world. This helps the promotional and the marketing activities of the company and the financial strength of the company helps the company withstand any pressure in the economy. Weakness: The weakness of the brand is that as the company has many products, the promotional activities are not disbursed equally among them. There are some health issues and the company received negative publicity like that in India when there were voices raised over the presence of pesticides in the product. Opportunities: The Company has many brands to operate on and the growing population provides a good market. The stature and the strength of the company provide the opportunity to buy the rival companies. The future of the industry is acquisitions and mergers and the company is in a good position to pursue the goal. Threats: The competition in the industry is intensifying and this puts pressure on the company. The company depends on the whims of the bottling partners and there has been sluggish growth of the segment for the last few years. (English, 2001; Pp 59-60) PEST analysis Political: The Company operates in the beverage industry, which falls under the food industry. Therefore, the Government of different countries has formulated rules and regulations for the control of the quality factor and the company has to abide by it. Economic: As the company operates in different countries of the world, the economic conditions of the countries influence the conditions. The global economic conditions have a certain impact on the operations of the company. The recession had a certain impact on the activities of the company with lesser sales. Social: The social factors have a wide impact on the turnover of the company. In the USA, the Coca Cola has become a way of life. The controversy in India resulted in the decrease of the sales of the beverage in the country. The company has to associate itself with the social works of the country to attract the customers. Technological: The technological changes in the industry give rise to the more and more variants in the industry and the company is well prepared to respond to the changes. Given the stature of the company, it is not surprising that the company in most of the time is the introducer of the new technology in the market place. (Soffe, 2005; Pp 317-318) The environmental factors put the company in good stead and this will help the company in the 2012 Olympics. Marketing plans The company has been associated with the Olympics from 1928. The Olympics of 2012 in London provides a good opportunity for the company to stamp its authority over the global beverage industry. The company should follow the principles of segmentation, targeting and positioning. Segmentation: In the Olympics in London, people from all around the world will come to the city for the games. The choices of the customers will be different. Some people will like the energy drinks, some will demand the beverages, some will demand water etc. The plethora of products in the stables of the company will help the company to cater to the needs of the people. The market can be segmented again as follows: Taste and health consciousness Price Health drink Carbonated drink and beverages Water The company serves all the segments in the market, as there are over 400 products. Therefore, the market in the Olympics can be segmented in all the variants and special emphasis must be given to the beverages category. Targeting: The segments of the market are served well by the company and the segments of the market should be targeted well in the Olympics. As it is the biggest sporting event in the Globe, the company should be targeting the health drink segment. The athletes should be supplied with the health drinks and the spectators should be encouraged to have the health drinks. Positioning: The positioning of the product is the important for the development of the product. Coca Cola has positioned the main product as a global brand. The product should be positioned as a premium product in the Games, which is high on quality. The emphasis must be laid on the quality of the product rather than on the price of the products. The company has excellent operations all over the world and the supply of the products will not be a problem. (Needle, 2004; Pp 424-425) Advertising Campaign The company should be involved in a huge advertising campaign for the promotion of the products. In UK, the Coca Cola supplies beverages like Coca Cola, Fanta, Sprite etc. There has been a visible impact of the health related drinks like the Diet Coke, Coca Cola Zero etc. In the 2012 Olympics to be held in London, the products are to be supplied from the stables of the company in Middlesex. That will help in reducing the costs. As the beverage is the sponsor of the sporting event, it will do well to have the name of the brand in the jerseys of the sportspersons. The Olympic park in London is the main venue. In addition to this, there are multiple venues in and around London for the various disciplines like athletics, football, swimming, cycling etc.(London 2012, n.d.) The venues should have banners of the Coca Cola outside and inside of the venues. The banners should read like this: The venues should supply the various drinks of Coca Cola within the venues and the outside it. The vending machines used by the company should be hygienic and should be quick. The company may use its own resources or can lease some of the most modern machines from the likes of In Cup Plus Xen-550, which is one of the most hygienic and modern machines. (The “modern” drinks vending machine – a link in the food poisoning chain?, n.d.). Inside the venues, there should be at least 4-5 stalls supplying the drinks and in the outside, there should be at least one stall in front of each gate. The amount of the vending machines will depend on the size of the stadiums. For example, a big stadium like the Wembley would need 10-12 machines inside. As Coca Cola is the official sponsor, it will have the preference in serving the customers. The company should tie up with the leading hotels and the restaurants to serve the customers with the drink. The hotels and the restaurants should house the banners of the products. In the UK, Wayne Rooney is the brand ambassador of the company and the banners may contain the pictures of the footballer. (Coca Cola, n.d.). The banners projecting the footballer should be placed at the strategic points in the city like the airports and the stations so that the people may know that the drink is the official associate of the Games. Any shops and restaurants should have the banners, which will help the cause of projecting the brand. The banners should be placed all over the city and the shops so that people come to know of the brand. The company may offer souvenirs for the spectators comprising of the official Logo of the Olympics and that of Coca Cola. References: 1. The chronicle of Coca Cola. (n.d.). The Coca Cola Company. Available at: http://www.thecoca-colacompany.com/heritage/chronicle_birth_refreshing_idea.html (Accessed on 7th May, 2010) 2. SWOT analysis of Coca Cola. (n.d.). Scribd.com. Available at: http://www.scribd.com/doc/9995196/Swot-Analysis-of-Coca-Cola (Accessed on 7th May, 2010) 3. English,J. (2001). Applied equity analysis. Mcgraw Hill. 4. Soffee, R. (2005). The countryside notebook. Blackwell Publishing. 5. Needle, D. (2004). Business in context. Cengage learning. 6. London 2012. (n.d.). Available at: http://www.london2012.com/indexb.php (Accessed on 7th May, 2010) 7. The “modern” drinks vending machine – a link in the food poisoning chain?. (n.d.). FM. Available at: http://www.practicalfm.co.uk/shownews.asp?id=76140 (Accessed on 7th May, 2010) 8. Coca Cola. (n.d.). Available at: http://www.superbrands.co.il/pdf/Coca-Cola.pdf (Accessed on 7th May, 2010) Read More