Current Marketing Strategies Followed by Coca-Cola Company and Its Impact on Target Audience - Research Paper Example

BUSINESS RESEARCH METHODOLOGY of the of the Introduction Background The formulation of marketing strategies a major concern for all big organizations and this study will be focused towards identifying the critical issues related to this approach in Coca-Cola Company. Statement of problem The problem statement of the study is to identify the vital components of marketing strategies adopted by Coca-Cola Company and to evaluate its impact on target audience. Significance of the problem In this research study the problem significance is closely knitted with analyzing the different marketing theories and then applying them on chosen company so as to determine their importance. Rational for the topic This topic has been chosen as it gives wider scope for future research. It would even help to properly analyze the current marketing strategies which have been implemented by the company and its significant impact on their sales and customer retention. Research aim The aim of the research study is to determine the current marketing strategies which is been followed by the company. This study will even simultaneously aim at outlining the areas which is creating a positive impact as well as a negative impact on external environment. Research objective The major objective of the research study is to analyze the current marketing strategies of Coca-Cola Company. Research question The research question for the study is – “what are the current marketing strategies followed by Coca-Cola Company and its impact on target audience?” Literature Review Introduction As per Lau (2011), marketing strategy has the goal of achieving competitive advantage and increasing sales. This form of strategy encompasses long-term as well as basic activities in marketing field. They majorly deal with analyzing the company’s present situation, selecting or evaluating market-oriented strategies and this ultimately contribute towards accomplishment of goals and objectives of the company. These strategies which are framed by a company forms the underlying base of marketing plan and its main focus is to meet the needs of market. The time horizons which are covered by marketing strategies are becoming eventually shorter as rate of environmental change is increasing. These strategies can be interactive or dynamic. At times they are partially planned or even are unplanned in certain situations. Marketing strategy basically comprise of thorough scanning of external and internal environments. The internal factors are marketing mix modelling, strategic constraints and performance analysis (Lau, 2011, pp. 113-114). External factors comprise of target market analysis, customer analysis, and competitor analysis, along with evaluation of certain elements related to economic, legal, cultural, technological, or political environment which might have a significant impact on success of the company. Main body As stated by Hastings (2013), marketing strategies usually differ from one company to another as it depends on the particular business situation. The first type of marketing strategies is those which are based on market dominance. On basis of this marketing strategy scheme firms are divided as per industry dominance or market share. There are mainly four kinds of such dominance strategies; they are leader, challenger, follower and nicher. The marketing strategies change with each phase of the business cycle. At the introductory phase, strategists majorly adopt penetration or niche marketing strategy. In the growth phase there are other alternatives of such strategy that is generally adopted by marketing manager like brand expansion and segment expansion. On the other hand in the maturity phase where sales level of a company starts to decline the common form of marketing strategy which is adopted is maintenance strategy described in BCG matrix. As per declining phase where financial stability of a company witnesses a turmoil, harvesting strategy appears to be non-profitable but in that scenario divesting strategy proves to be beneficial. The business strategy, corporate strategy and functional strategies like marketing strategy are integrated so as to shape competitive advantage of businesses in firm’s portfolio. This form of advantage in turn affects financial performance and market based performance of businesses. The model of structure-conduct performance describes at an average as to why some of the firms appear to be more profitable in comparison of others. On the other hand all the works undertaken by Michael Porter states that competitive strategy and industry’s structural characteristics relate to overall performance of business. The first important theory in marketing strategy is game theory which this states that firms are usually maximizers of rational utility and they strive towards achieving desirable outcomes but are subjected to constraints as other players in the industry even behaves in similar fashion. Signalling is another important theory stating that competitive signals are previews or announcements related to potential actions that is intended to gain information or convey information to competitors. Those signals that comprise of information about firm’s intentions to competitors can disrupt competitive position of a company and signals if not followed appropriately can even violate its competitive reputation. Product quality is another important approach which is encompassed in marketing strategy of a company. This factor is influences demand curve to a great extent other than price of product. A business that adopts niche marketing strategy by targeting a small market niche by offering high price and high quality product, eventually excludes them from market dominance contest in context of broader market. The model of structure conduct performance exhibits a positive association between profitability and industry concentration. Through this model firms usually try to incorporate multiple dimensions in their marketing strategy formulation such explanation of quality, efficiency and market power. On the other hand this model even states that there are a series of third factors which help a business to gain superior performance and high market share. Market pioneering is an important theoretical approach in marketing strategy which states that a business is termed as a market pioneer when it introduces a new process, new product or attempts to enter within a new market. However this concept comprises of two major perspectives such as economic analytical and behavioural. The first perspective states that market pioneer is able to gain competitive advantage due to entry barriers. Whereas the later perspective says that pioneer is able to achieve advantage at brand or product level due to learning of roles in formation of consumer preference (Hastings, 2013, pp. 223-230). Market orientation is another vital concept in marketing strategy that encompasses three main dimensions such as competitor orientation, inter-functional coordination and customer orientation. The behavioural perspective of market orientation states that organization can gain market intelligence through pertaining future as well as current needs of customers and making the organization more responsive. According to Bell (2003), Coca Cola Company has been able to gain its competitive advantage by incorporating appropriate marketing mix in its business system. The company sets its universal marketing strategy on three important pillars such as acceptability, affordability and availability. Acceptability is maintained on basis of effective marketing that ensures all brands of the company are a need in daily lives of customers, so as to establish the brand name as preferred beverage. The company even guarantees that it offers best prices to its customers in relation to value for money. Availability is a vital component which is taken into consideration by the company so as to ensure that their product is available to end users easily and it is even stated as pervasive penetration. The company has even organized a well planned global distribution network in order to enable availability of product in every corner across the globe. This networking forms an effective part of the company’s marketing strategy. The strategy of the company was effective down the years and even in present context as it relates the brand with the aspect of quenching thirst. In current scenario the company utilizes all possible forms of marketing media such as television, radio, social networking sites, print media, etc (Bell, 2003, pp. 90-91). It focuses on overpowering all its competitors by enhancing its presence in the market place. Hays (2000) in his studies stated that for more than 100 years Coca Cola has been a significant part of popular culture and is often considered to be a “vision brand.” The major strength of such marketing strategies being adopted by the company is its strong base of creative excellence. This brand has been able to prove it that conveying required information is not the major aim of marketing but creative ideas needs to be melted in the procedure so that customers are able to distinguish the brand from others. The other strength of the marketing strategy is its inclination towards liquid content through which the company is able to exercise control over its content. There are other strengths too of this strategy such as focus on conversation throughout the strategy and maintaining a certain level of simplicity in the overall approach. The weakness of the strategy is that beverages of different companies may differ in taste and appearance but it serves the common motive of quenching thirst. Though creative ideas have been incorporated by the company but there is not much that the company could do in relation to conveying their internal message to customers. The major opportunity is to focus more on quality in the strategy formulation and identify certain unique selling proposition that cannot be imitated easily by other players. On the other hand the threat is growing competition in international as well as national markets which results into consistent changes in marketing strategy of the company. There has been previous research conducted on this topic which states that marketing strategy of Coca Cola Company is inclined towards meeting the hidden needs of customers. Some of the researchers even stated that the firm tries to adopt the strategies followed by their competitors in order to stay competitive in the market place (Hays, 2000, pp. 115-118). This has proved to be advantageous for the firm in many situations but in certain conditions this approach proved to be a major failure for the company. The reason behind the failure was that target group was unable to distinguish the brand name of Coca Cola Company from other players in the market. Marketing strategy is a topic of high interest for all large scale or medium enterprises as this form of strategy enables a firm to connect with target audience. This strategy even provides competitive advantage to firms as they are able to bring forth the hidden message behind their product or service offerings. However in certain context this form of strategy formulation demands huge amount of investment and hence many organizations aim at delivering quality product or service to customers rather than focusing on such strategy implementation. On the other hand it can even be stated that this strategy is a base for all firms as it not only focus on developing brand image of the company but even gives equal consideration to develop broad channel of distribution so as to ensure that products or services are delivered at least time to customer. The company chosen for the research study has been able to successfully develop their brand image in the market place over the years. In earlier times the company use to majorly incorporate creative ideas utilized by other beverage companies in the industry such as Pepsi, etc. However in the present scenario the company brings forth certain innovative ideas which appear to be interesting to end users. On the contrary the company even has stated that they majorly focus on incorporating innovation in their product line rather than making changes in their overall marketing strategy. The approach which is usually adopted by real time companies is not similar to that of theoretical models used for marketing strategy formulation. In order to survive from intense competition, a company basically incorporate different features of these theories which can deliver the best possible outcomes. Conclusion The study focuses on identifying the current marketing strategy adopted by Coca Cola Company. In an overall context there are various theoretical models which can be utilized by a company so as to frame proper marketing strategies. These models have a strong relation with the business cycle phase in which the company is currently operating, as marketing strategies in the growth phase will be different from that of maturity phase. In context of Coca Cola Company, there is no such significant model which the company incorporates but it focuses mainly on product quality and its distribution network. It is even witnessed that the company in the recent years has adopted the market orientation approach whereby it aligns all its operations as per customer or competitor orientation. Research Methodology The research philosophy can be considered to be a major part of research paradigm. This form of philosophy directs the entire research procedure. There are various forms of research philosophies such as positivism, interpretive and realism philosophies. All these philosophies are of different nature and it totally depends on the nature of the study so as to determine which one of these philosophies can be incorporated in the study. Positivist paradigm is usually adopted by majority of researchers as it relates to a highly structured methodology. Through this approach data is efficiently collected by a researcher and then it is evaluated so as to determine appropriate result. On the other hand there is another form of philosophy that is commonly employed in research study known as interpretive philosophy. This paradigm is contradictory to positivist approach stating that business and management in real time is complex and cannot be aligned with theoretical models and approaches (Mark, Lewis & Thornhill, 2010, pp. 70-71). As per this paradigm it is essential that a researcher possess the ability of critical thinking so as to evaluate various data available in relation to research question. In a research study there are usually two ways to arrive at conclusion that are deductive and inductive reasoning. It is important for a researcher to be specific in the entire procedure so that more prominent results can be obtained at the end of a research study. Deductive reasoning states that a researcher usually in the initial phase analyzes broad theories related to the research topic and then narrows down to single solution (Yin, 2004, p. 177). On the contrary, inductive reasoning states that a researcher considers specific observations in the beginning and then move towards broader theories and generalizations. The inductive reasoning is usually stated as bottom up approach while deductive reasoning is known as top down approach. In this particular research study, researcher is inclined towards deductive research reasoning as broader theories are initially tested and then focus is on compiling the observations to frame better results. Qualitative and quantitative approach is a broader category of research methodology. Qualitative approach is focused towards analyzing views and opinions of different people related to research study. On the other hand quantitative research study is more aligned towards collecting wide set of data and then evaluating these data with respect to any statistical tool (Thomas, 2003, pp. 132-133). In this study both the approaches will be incorporated so as to determine appropriate research outcomes. Research design The research design can be described as a process through which it easier to collect data for a research study. There are various methods which are followed by a researcher so as to achieve end results. Case study method is usually incorporated when there lays a need to examine various variables related to a research topic that has been previously stated by researchers or certain data which is already available (Salkind, 2010, pp. 102-103). Experimental research procedure is adopted when appropriate results can be obtained through observation in an environment that is highly controlled and in which more than one variable can be varied while others will be constant (Jankowicz, 2005, pp. 111-112). Action research is usually undertaken so as to solve certain problems occurring in an organization by working together with other group of people towards finding solution for an identified problem. Survey is a common form of research design which is adopted by majority of researchers in order to collect data and then perform required analysis on the data. There are usually three forms of surveys such as cross-sectional survey, longitudinal survey and comparative survey (Gill, Johnson & Clark, 2012, pp. 95-96). In this research study cross-sectional survey is most appropriate as this research topic is about analyzing the views of certain group of people in specific time period. These people need not be repeated in the second survey which might be undertaken by the researcher in future years. On the other hand, experimental approach will also be incorporated so as to observe opinions or activities undertaken by individuals and relate them to research findings. Data collection Observation can be regarded as one of the most effective tools for collecting research data. There are mainly two forms of observation such as structured and participative. In this research study participative approach will be utilized where a group of people will be asked to identifying respective brands by viewing different marketing campaigns. This would help to analyze the impact of marketing campaign on target audience. The observation method of data collection would be executed in UK market. In many research studies it is witnessed that researchers prefer to conduct interviews so that they are able to obtain appropriate results related to problem statement. This research study will also focus on interviews to be conducted in UK market. However the interview session will be divided into major parts, that is, managers of Coca Cola Company in UK will be interviewed along with local people. This in turn will give a broader view of marketing strategy being followed by the company. Questionnaire design is another approach to be utilized in the research study. The respondents to be surveyed will be from the management of the company in UK. This would comprise of marketing managers, divisional head and employees of the organization. On the other hand the questionnaires designed will comprise of various questions related to marketing strategy of the company. The data collected will be analyzed on the basis of a statistical tool so that certain loopholes related to the company’s marketing strategy can be efficiently outlined. In this approach convenience sampling will be used and the sample size will be of 10 respondents. The focus group study is an approach through which researcher gets an opportunity to interact directly with respondents and closely analyze their different views. It can be stated that through such focus group study it becomes easier for a researcher to interpret wide set of data. For this research paper the focus group study will be executed in UK with two groups comprising of respondents from local market. These groups will enter into discussion about marketing strategy followed by Coca Cola Company and will even judge its effectiveness in overall context. Sampling is another concept in research data collection and will be incorporated in the research study. This method will also be applied in UK market where a group of people in shopping malls or office areas will be questioned regarding various aspects of research topic. Data analysis The observation procedure has been conducted in UK market and respondents were shown a marketing campaign undertaken by Coca Cola Company where they proclaimed that all necessary elements are taken into consideration during operational procedure so as to ensure that end consumers do not consume unhealthy product. However in comparison to this campaign there were even other commercials shown of Pepsi, local beverages, etc. The brand identity of these commercials was discarded so as to analyze the extent to which customers can identify the brand name behind the campaign. Majority of the respondents were able to identify the commercial of Coca Cola Company, while some confused the commercial of Pepsi with that of Coca Cola. A thorough observation was made by the researcher so as to determine the level of curiosity amongst respondents while viewing the marketing campaign. It was observed that 67% of the respondents were able to quickly identify the brand name with fraction of seconds while rest could identify but after longer time period. Thus it can be stated that marketing campaign which is designed by the company though at times may not highlight product features but is able to draw a strong mark in consumer’s mind. Interview served a two-fold purpose as it helped in analyzing the views of management towards framing marketing strategy and simultaneously even identified the impact of marketing strategy on end users. The managers were asked that which component they take into consideration primarily so as to formulate marketing strategy. They replied that highlighting product quality and availability is their major concern in overall marketing strategy. On the other hand they were even asked the major factor driving their current marketing strategy. All the managers agreed on a common factor that their main focus is to link their product with a move towards environmental protection. However there are certain other factors even as stated by the managers in their marketing strategy, that is to link the product with sports event so as to connect easily with youth, initiate product bundling, creative innovative taglines such as ‘product that can quench thirst’, and proclaiming that proper care is taken by the company in terms of waste disposal or bottling activities. The local people were asked about the effectiveness of marketing strategy adopted by the company. Most of the respondents stated that the initiative of the company towards safer environment is appreciable but there are not much innovative characteristics in their marketing strategy which could differentiate it from other players. The first question which was asked to the managers in the survey was the most important factor in any market strategy. Figure 1 As per figure1, majority of the respondents feel that customer satisfaction is most essential factor and should be taken into consideration while formulating marketing strategy. The next question was to analyze the major strength of the company’s marketing strategy and the results are elaborated in figure2. Figure 2 According to figure2, it can be stated that innovative approach appears to be major strength for the managers in marketing strategy formulation. They even proclaimed that in all their strategies they give more importance to creative ideas than following concepts adopted by their competitors. The next question was open ended to determine the current marketing strategy of the company. Majority of the respondents stated that as managers their main focus is to enhance brand presence and hence they sponsor various sports events, enter into contractual agreements with hotels, fast food restaurants, etc. The managers were even questioned as to which of the media channels they consider while advertising. Figure 3 As per figure 3, it is clearly evident that television is the major medium of advertisement for the company. On the other hand internet has even proved to be an emerging medium for advertisements as considered by managers of the company. Apart from these, the other question was related to desirable impression which the managers intend to create through such marketing strategy. Figure 4 According to figure4, the approach of being trendy is the major impression which the company desires to create. This is because the management believes that staying trendy will make the youth relate more to the product. In the focus group study the major aim of the researcher was to highlight the vital factors of the marketing strategy being implemented by Coca Cola Company. Group A was in favour of the strategy which is followed by the company and Group B came forward with certain factors that is not taken into consideration by the company. Group A states that the company has been able to understand the hidden demand of customers and so manufactures product in different sizes and prices. On the other hand Group A even analyzed that the company’s market strategy is aligned towards increasing the rate of availability by implementing the approach of product bundling, entering into contracts with hotels, large business groups, big events, etc. However Group B stated that the ideas being implemented by Coca Cola Company is similar to that of any other beverage group. As per this group there is a great scope which is still left to be explored by the company. The members of this group even feel that the company should increase their level of participation in any alarming event taking place in the external environment. According to the mechanism of sampling which was incorporated in the research study it can be highlighted that customers are more inclined towards those marketing campaigns which can proclaim clearly the message behind company offerings. The respondents who were questioned through sampling stated that marketing strategy adopted by the Coca Cola Company is more focused towards displaying their products rather than outlining the unique selling proposition of the company. They said that the company is more inclined towards increasing sales rather than enhancing product innovation. On the contrary they feel that other beverage companies in the industry adopts more innovative approach and takes into consideration the health issues surrounding target market. Coca Cola Company was able to mitigate some health factors by launching a product that encompassed low level of fat and sugar content. However there are no such frequent product innovation which is undertaken by the company and majority of sampling respondents feel that this company strive towards being competitive in the market place or counteracting competitor’s strategies in comparison to developing their own creative ideas. The major strengths of the marketing strategy identified by these respondents are its ability to relate easily with customers and overall simplicity of the strategy. Reliability validity and Ethics The reliability, ethics and validity are three important components of any research study. Ethics need to be maintained by researcher so that there is no such exploitation of data. Even the researcher needs to take into consideration various aspects of ethics as one cannot force respondents to proclaim certain facts going beyond the level of confidentiality. On the other hand reliability factor of this research study is maintained as the researcher has accessed credible sources and even involved those people in the study who can give proper facts and figures related to marketing strategy of the company. Since the entire study deals with the current marketing strategy of the company so there is high degree of validity and even scope for further research in areas which needs more improvement. Research Time plan Week 1 2 3 4 5 6 7 8 9 10 Research problem formulation                     Research question formulation                     Collection of background information                     Research objectives formulation                     Research tools determination                     Allocation of tools                     Analysis of information                     Learning outcomes and results of the study                     Appendix Questionnaire 1. What do you feel is the most important factor in a marketing strategy? Brand Image Customer satisfaction Competitive High revenues Brand presence 2. In the current marketing strategy where lies the major strength of your company? factor of reliability innovative approach diverse product line customer retention Others 3. What is the current marketing strategy of your company? 4. Which media channels have the company adopted for advertisements? TV Radio Internet Magazines None of the above 5. What kind of impression does the company intend to develop in the market through such strategy formulation? Traditional Trendy commercial controversial provocative enjoyable References Bell, L. (2003). The Story of Coca-Cola. USA: Black Rabbit Books. Gill, J., Johnson, P., & Clark, M. (2012). Research methods for managers. London: Chartered Institute of Personnel and Development. Hastings, G. (2013). The marketing matrix: how the corporation gets its power – and how we can reclaim it. New York: Routledge. Hays, C. L. (2000). The real thing: truth and power at the coca-cola company. New York: Random House. Jankowicz, A. D. (2005). Business research projects. London: Thompson. Lau, J.Y.F. (2011). An Introduction to critical thinking and creativity: think more, think better. Canada: John Wiley & Sons. Salkind, N. J. (2010). Encyclopedia of Research Design. New Delhi: SAGE. Saunders, M., Lewis, P., & Thornhill, A. (2010). Research methods for business students. UK: Prentice Hall. Thomas, M. R. (2003). Blending qualitative and quantitative research methods in theses and dissertations. London: Corwin Press. Yin, R. K. (2004). Case study research, design and methods. New York: Sage Publications. Read More