The Marketing Mix of Coca-Cola Company - Case Study Example

Marketing Mix Analysis of Coca-Cola AFFILIATION: Table of Contents Table of Contents 2 Introduction 4 Background of the study 4 Marketing mix analysis of Coca-Cola 6 Conclusion 9 Key Recommendations 9 References 11 Coca-Cola is a prominent international brand which has been present in the market for many years. Till now, it has maintained competitive edge in the market for proficiently responding to the changing consumer needs along with creation of an excellent distribution system. It was the pioneer in introducing the concept of outsourcing manufacturing facilities to avail economies of scale. Coca-Cola is recognised globally for offering unique products at affordable prices. Recently, the company has been faced with the challenges of growing number of obese people, protection of environment and acceleration of social media marketing. In order to strategically deal with the situation and maintain the competitive edge, it is crucial for the company to develop and implement an effective marketing plan. Firstly, it needs to allocate additional funds in R&D activities so that it remains well-informed about changing market dynamics. Then it needs to integrate social media tools in the current marketing activities so that it can tap the online target audience. Finally, it will have to introduce an appealing range of drinks for health conscious consumers. Hence, Coca-Cola has to continuously exploit the opportunities available in the market so that it can sustain its superior position in the industry. Introduction Coca-Cola is renowned globally as the leading brand in the soft drink industry as it has been offering superior and consistent quality to the customers in all markets. The organisation has been attaining continuous growth and momentum as it has been capitalising on its competitive edge elements. Presently, it has operations in more than two hundred countries with about 84,000 suppliers (Coca-Cola Enterprises, 2013). As of 2012, the company has been generating more than 70% of its revenues from markets outside US. It sold about 12 million cans and bottles and generated approximately $8.1 billion revenue (Coca-Cola Enterprises, 2013). The crucial competitive advantage that the brand has lies in its own bottling infrastructure which allows it to monitor the quality of the complete range of products effectively. Background of the study In order to attain the dominant position in the industry, Coca-Cola has been revamping its brand image on an ongoing basis. Recently, there has been an increase in the health concerns and consumers are switching away from soft drinks to juices (Yannopolus, 2011). One of the prominent challenges encountered by the company is that various countries have put restrictions on the usage of its products (Kotler & Keller, 2011). These regions have claimed that Coca Cola products are unhealthy and they are threatening the health of public which is causing an increase in obesity (Banutu-Gomez, 2012). Simultaneously, the corporation is facing legal calamities as it is charged against violation of the labour laws. It has been found that the organisation has unfair business practices in terms of discrimination regarding the health care facilities provided to the lower staff (Barkay, 2013). In order to compete effectively and sustain the competitive edge, the corporation has introduced a range of products to cater to the alternatives of soft drink. Some of the successful brands launched by the company are Fanta, Sprite, Minute Maid, Vitamin Water, Odwalla, Smart Water, Powerade and Fresca (Ghosh, 2010). Since it is a global brand, it is imperative for the corporation to take account of the macro environmental factors such as political, economic, social, technological, legal and environmental (Kerin, Hartley & Rudelius, 2012). Moreover, the cultural barriers have to be given utmost importance because a product is successful in that market which adapts according to the market requirements (Kotler & Keller, 2011). The major challenges encountered by Coca-Cola are litigations, growing health concerns, creating sustainable organisation, water scarcity and fostering a learning work environment. In this paper, the marketing mix of Coca-Cola will be thoroughly and critically analysed addressing the challenges faced by the company. Finally, practical and worthwhile recommendations will be given to support the company in sustaining the competitive edge in the industry. Marketing mix analysis of Coca-Cola Coca-Cola target markets are diverse as it is a product which can be consumed by everyone worldwide regardless of age or gender. The company adopted the global marketing strategy in year 1919 but now it has made some changes to align it with local market needs. Presently, Coca-Cola is believed to be following a global strategy which is a combination of the international and standardisation concepts (Brej et al., 2011). For instance, all of the products are manufactured in its production facilities but the marketing activities are designed in accordance to the particular region (Barkay, 2013). As the customer’s desires keep on evolving and the changes take place at a fast pace, Coca-Cola strives hard to comply with the consumers demands. For example, Nutri Juice, an orange flavoured drink was introduced in the market for addressing the iron related problems. This new product had iron, Vitamin A, Zinc, Vitamin C and Lysine so that it could fulfil the requirements of people who wanted remedy for their iron-deficiency issue especially for the people living in Philippines region (Banutu-Gomez, 2012). Even the product helped more than 36,000 children in the zone as the product was provided freely in the elementary schools (Isdell & Beasley, 2011). The entire range of Coca-Cola is found in all the retail outlets worldwide. The brand name is easily recognised by everyone and they are found at all convenient places. Moreover, the products are offered at affordable prices so that people belonging to a diverse range of income levels can buy them (Bilara, 2013). Furthermore, the brand fulfils its commitment of meeting the local markets needs by giving attention to the diversity aspects of the cultures. This facet is evidently reflected in the marketing campaigns as they are tailored according to the respective territories. However, it offers the promotions and discounts to the retailers so that it can enhance its brand image (Barkay, 2013). In addition to these advertising techniques, Coca-Cola advertisements are run on Television and published in the leading newspapers and magazines. Even, it sponsors a range of sports events and organises various forms of competition (Kotler & Armstrong, 2013). As consumers are realising that the soft drinks are the major triggers of obesity, people are switching to other substitutes like juices, bottled water and iced teas (Titus & Nagabhushana, 2012). Coca-Cola effectively dealt with this changing trend by developing an entirely differentiated range of products for this health conscious segment. In order to show that it cares for the community, it has started a range of charitable events so that the money raised from such occasions can be beneficial for the society at large (Barkay, 2013; Business Social Responsibility, 2008). Moreover, the production and sale of the products are sold to the organisation’s company-owned and independent authorised bottling operations along with the spout wholesalers (Daniels, Radebaugh & Sullivan, 2011). According to Banutu-Gomez (2012), the bottling system of Coca-Cola is the major driver of its competitive advantage as it permits the company to undertake the business activities on a global level. Also, it allows the company to follow the national approach because the bottling firms are locally owned and even operated by the independent enterprises who are the authorised distributors of Coca-Cola. As it doesn’t have entire ownership, the major source of revenue is the selling of its recipe (Titus & Nagabhushana, 2012). Recently, the organisation had to face legal claims by few government authorities as it violated the child labour law and even overlook the unfair discrimination law (Barkay, 2013). Since there are many concerns for the protection of environment, the manufacturing concerns have to design the production processes in such a way that no damage is done to the environment and raw materials are utilised in a manner that the final packaged goods can be recycled after consumption (Bilara, 2013). Overall, Coca-Cola aims to utilise the brand, effective distribution networks and financial capabilities for attainment of the long-term, continuous and sustainable growth. Also, it has made sure that it has efficient Supply Chain framework so that everything is well-synchronised. As the latest trend is of social media marketing, Coca-Cola will have to exploit the diverse avenues available on this platform so that it can reach a wide target audience. Although it has taken a step of designing the website in accordance to the market but this area is still untapped by the company. Conclusion As a whole, Coca-Cola has been leading the soft drinks industry with excellence as it has been offering the consumers a competent and extraordinary appealing product choice. But due to increasing concerns for ethical and moral business practices, it has become mandatory for the organisation to undertake modifications in operations to comply with the market requirements. Overall, Coca-Cola has been offering differentiated products to the consumers at affordable prices. Even the promotional plan is developed in accordance to the respective market’s needs so that desired targets are successfully attained. Additionally, the distribution system is the major driver of the brand’s success and source of competitive advantage. Key Recommendations In order to enhance the brand image and exceed the expectations of the customers, Coca-Cola should consider implementing the following suggestions: 1. Invest more money in Research and Development activities so that the study can reveal the latest demands of the consumers. It will even acknowledge the brand to explore new or unique options for enhancing the brand image. For instance, it can offer drinks specifically for the health conscious individuals. By launch of this innovative product line, Coca-Cola will be able to give a tough competition to its rivals especially Pepsi as it lags behind in this segment. 2. As it sponsors a range of sporting events, it can get sponsorship in popular reality shows such as Master Chef, American Idol, Big Boss and others. This strategy will allow it to reinforce the brand appeal and may even allow it to persuade customers to develop stronger association. 3. Even the social media marketing tools such as blogs, social networking sites, Search Engine Optimisation, article directory and RSS should be embedded in the marketing strategy. With the help of such techniques, Coca-Cola will be given an opportunity for reaching the online target market. This avenue will permit it to advertise about the latest offerings in economical way. 4. In addition to the strategic alliances with fast food restaurants, Coca-Cola should attempt to create partnerships with leading restaurants in each market which has national presence. It will provide it an opportunity for augmenting its distribution network. 5. Finally, it should organise seminars on various health and environmental issues so that it can demonstrate that it promotes ethical code of conduct. Moreover, it has to make sure that it discourages employment of children in production facilities and other operations so that it is in alignment with the labour laws. References Banutu-Gomez, M.B., 2012. Coca-Cola: International Business Strategy for globalisation. The Business and Management Review, 3(1), pp. 155-169. Barkay, T., 2013. When business and community meet: A case study of Coca-Cola. Critical Sociology, 39(2), pp. 277-293. Bilara, 2013. Coca Cola Marketing Mix. [Online] Available at: [Retrieved 15 April 2014] Brei, V.A., D’Avila, L., Camargo, L.F. and Engels, J., 2011. The influence of adaptation and standardization of the marketing mix on performance: A meta-analysis. Brazilian Administration Review, 8(3), pp. 266-287. Business for Social Responsibility, 2008. Drinking it in: The evolution of a global water Stewardship program at the Coca-Cola company. [Online] Available at: [Retrieved 15 April 2014] Coca-Cola Enterprises, 2013. Building a sustainable tomorrow: Our journey in 2012. [Online] Available at: [Retrieved 15 April 2014] Daniels, J.D., Radebaugh, L.H. and Sullivan, D.P., 2011. International business environments and operations. 13th ed. New York: Prentice Hall. Ghosh, P., 2010. Looking through Coca-Cola: Global icons and the popular. Public Culture, 22(2), pp. 333-368. Isdell, N. and Beasley, D., 2011. Inside Coca-Cola: A CEO’s life story of building the world’s most popular brand. New York: St. Martin’s Press. Kerin, R., Hartley, S. and Rudelius, W., 2012. Marketing. 11th ed. USA: McGraw-Hill/Irwin. Kotler, P. and Armstrong, G., 2013. Principles of Marketing. 15th ed. USA: Prentice Hall. Kotler, P. and Keller, K., 2011. Marketing Management. 14th ed. USA: Prentice Hall. Titus, P.R. and Nagabhushana, 2012. Coca Cola in India: A study on product portfolio and distribution adaptation. International Journal of Research in Finance and Marketing, 2(2), pp. 360-378. Yannopolus, D.P., 2011. Defensive and offensive strategies for market success. International Journal of Business and Social Science, 2(13), pp. 1-12. Read More