Marketing Research and Planning Project - Milka-Cola - Case Study Example

Table of Contents 1.0. Introduction 02 2.0. Corporate Objective 02 3.0. Market Overview 03 4.0. Marketing Audit 04 4.1. Marketing Mix 04 4.2. SWOT Analysis 05 4.3. PESTEL Analysis 06 4.4. Porter’s Five Force Model 07 5.0. Assumptions 08 6.0. Marketing Objectives and Strategies 09 7.0. Promotional Programme 09 8.0. Conclusion 10 9.0. References 11 1.0. Introduction The soft drink industry is a very big one and the most of it being captured by two major companies, Coca Cola and PepsiCo. Coca Cola still has an upper hand in this section and is the world’s biggest company in this regard. The company has a very diverse range of non-alcoholic beverages and syrups and still is looking to enter more fields in this direction. The company has well performed over the years since its incorporation and also supported the world in its attempt towards globalisation. In this assignment we come across yet another brilliant attempt by the company to enter into a new field of dairy product with the introduction of ‘Milka-Cola’, where the company looks to provide quality milk with high protein and low sugar content. In this project we discuss the current market overview and the corporate strategy of the company along with the internal and external marketing factors that affect the decision making and the marketing strategy of the company. Further we come across the current market objectives and strategies for the introduction of the new product in UK and also the promotional programs that the company needs to employ keeping in mind the various details studied. 2.0. Corporate Objective The basic objective of any firm is profit making and Coca Cola is no different from the others. It looks to be globally known as a company that conducts business responsibility and ethically for acceleration of sustainable growth for continuous operation in tomorrow’s world. The corporate objective of the firm is in the direction of its mission to refresh the world, creation of value and making a difference. The corporate objectives of the company are as follows: Profit: Make maximum return on investment on one hand and also be mindful regarding their overall objectives. People: Having a workplace that is great enough to inspire people to be the best they can be. Portfolio: Giving the world a portfolio of beverage brands which is capable of anticipating and satisfying the desires and needs of the people. Partners: Growing a big and winning network of partners along with development of mutual loyalty. Planet: To be a responsible global citizen thus making a difference. These corporate objectives are carried out through proper marketing objectives for their attainment (Johnson, Whittington and Scholes, 2009). 3.0. Market Overview The global market has a lot of potential in it and the Coca Cola Company has seized the same and has covered more than 200 countries to become the world number one non-alcoholic beverage company. The company looks forward to grab the growth opportunities and other operational efficiencies as per its vision 2020 project (Coca-Cola 2013/14 Sustainability Report). With the people adapting different type of variations that the company has tried over the years and gained success in most of them, the management seeks opportunity for launching a new product like ‘Milka-Cola.’ The people becoming more and more conscious towards health issues and better standard of life, this product shall provide people with a choice of milk which contains 50% more protein and 30% less sugar than the regular milk available. With people turning away from drinking milk over the last decade this option shall again infuse milk consuming habits in the people on a contrary better dietary benefit. 4.0. Marketing Audit In this section the various models of marketing are studied for making the product a success in the market and gain advantage over the others. Both the internal and external factors affecting marketing are discussed in consideration to the ‘Milka-Cola.’ 4.1. Marketing Mix The marketing mix of the company has been very competitive and advantages over the years and so they look forwards towards a similar pattern for their new product to capture market and hearts all across the UK. Product: The Company has a variety of products and this new product is an addition to the existing list. The quality and quantity of the product has been designed as per the market demand and the added nutrition benefits have made the product more efficient for achieving success. Place: The product is required to be made available at easy accessible outlets and locations for the end consumers to get it easily. The product is to be made available online, through vending machines, Atm and any other such means for direct availability. The product is to be placed in convenient places for free access and being visible to the consumers (McDonald and Wilson, 2011). Price: The price of a product is what the consumer is willing to pay for a product or what a seller is ready to charge. Although the pricing is a little bit on the higher side the product is a distinct one in its category of nutrition so the people will be ready to accept the same. This has to be set as per a level of affordability for the consumers. Promotion: Promotion is the language of marketing to communicate with the customers and this is a concept applied by the companies to promote its product and services. The best of products fail if not communicated properly to the customers. The proper use of advertising campaigns, free sample distribution, easy availability, etc. are to be applied with proper implication to support the promotion of the product. Making a proper mix of the four P’s of marketing the companies are required to make a better marketing of the product. 4.2. SWOT Analysis Coca Cola is a very popular company and buying a product of the company is not just because of its taste but they feel a part of something so big and unifying. SWOT analysis of the company helps in studying both the internal and external factors affecting the business of the organisation (Passport, 2013). The strengths of the organisation in regards to the new product are: The brand has been recognised as best globally in terms of value providing enough option to take up new chances. Having the world’s largest share in beverages. Strong and effective marketing and advertisement channels. Most extensive beverage distribution channel. Huge pool of loyal customers. Bargaining power over suppliers. The new product is very high in terms of its protein content. The weaknesses of the company are: The company has majorly focused on carbonated and aerated drinks. High price of the new product which is nearly double the price of similar products in the market. Unpopularity of some brands focus more on Coke and Sprite. Negative publicity. The opportunities of the organisation are: The growth in the demand for packaged and bottled milk. Increasing demand for healthy supplements. With the previous success which the other products have previously availed provides an opportunity for launching of the new product. The threats to the new product of the company are: The changing eating and drinking habits of the people are changing tremendously so the acceptance could be not equal among all (Pitts and Lei, 2000). Legal issues are always behind such big companies with supreme wealth and popularity Level of competition in the local market. Image of a company which is heavily reliant on carbonates. 4.3. PESTEL Analysis The PESTEL analysis is the study of the external environmental factors that affect the organisation and its business. Political Factors: These are the political and government policies that affect the working and the launching of a new product. The political decisions can very fast impact many vital areas of the business. The quality of infrastructure and the health of the workforce are other such reasons (Kotler and Armstrong, 2001). Economic Factors: The interest rates, taxation charges, economic growth, inflation, foreign exchange rate are such economic factors that affect the firm’s behaviour. These may result in higher borrowing due to much tax or higher wages due to the inflation. The company is required to meet many such health related obligations before launching such a new product. Social Factors: Any changes in the social trend of the people directly affect the sales of a product. If the people are not willing to buy a new product or the society does not adapt to the new product can ruin the image of the new product. Technological Factors: Upgrading technology helps in the creation of new products through new process and in an efficient and cost reduction method. Innovation in a business can be brought through proper application of technological advancements. Environmental Factors: The weather and climate of UK shall play an important role in the success of the new product. With major part of the year being cold, ‘Milka-Cola’ surely has a chance of win-win situation. Legal Factors: The legal environment under which the firm operates is the legal factors. Legal changes in the UK could affect the costs of the product, thus affecting the sales to either increase or decrease. The management is required to seriously take into account these PESTEL factors to strategise for the new product. 4.4. Porter’s Five Force Analysis Porter’s Five Force competitive analysis of Coca Cola is as follows (Porter, 2008): i. Bargaining Power of Buyers: This factor can be argued as the most important factor as it is directly related to the customers. The buyers are not only the customers but also the large number of retailers and the supermarkets which require keeping a large range in order to generate customer traffic. Thus the pressure from the buyers is low. ii. Bargaining Power of Suppliers: The pressure from the suppliers is low as the suppliers are mainly of carbonated water, sweetener, etc. who are not concentrated and differentiated and more importantly Coca Cola is one of their largest buyer. But the milk product might give the suppliers an upper hand. iii. Threat of New Entrants: Coca Cola is seen as big brand and not just as a product. So the loyalty level of the customers is very high making the treat from new entrants to a medium in range. iv. Threat form Substitutes: Coca Cola does not have a different flavour from others and there are many other soft drinks in the market. Similar is the case for milk and so the threat from substitutes ranges from medium to high. v. Rivalry among Existing Firms: Currently the rivalry from existing firms like PepsiCo is very high and also other companies are making the competition level tougher. So the company has immense competition from like products as the customer easily switches or buys a different brand if Coke is not always available. 5.0. Assumptions The new product has to be placed very well in different stores and in direct reach of the customers to have it availed and consumes it. The company got to assume that the milk drinking habits of the people of UK to improve similarly like the US, over the last decade. The nutrition value of the product is more likely to attract a large number of customers than any such drink in the market. With such a big brand name the company is having a very high and positive chance of improving its sales in terms of the same. The company to spend a good share of their sales income on advertising for the product and make proper sales promotions like price-offs, etc. 6.0. Marketing Objectives and Strategies The marketing objectives of the new product shall be no different from its existing objectives and the company shall look forwards for the same strategies to be followed. Through effective marketing the target shall be to set it as an integral part of the daily life of the people. The pricing to be affordable and the availability of the product should be everywhere (Curd, 2014). The product being healthy in nature is required to be promoted to reach a 100% success level. With the company entering into dairy market, it needs to think more like what the other dairy product companies follow not just be confined to the basics of the soft drink industry. The strategies for the dairy product require the company to focus on its degree of nutrition importance that it has on offer for the people. The company needs to spend heavily on advertising and developing an image that proves it to be more than just a soft drink company. The advertisements need to be more descriptive regarding its high protein and low sugar content for making people aware of its basic advantage. Using the above studied internal and external factors of marketing mix, SWOT, PESTEL and Porter’s Five Force Model the strategies are to be very precise as the success shall only be possible using that information (Weinstein, 2004). 7.0. Promotional Programme Recognition of Milka-Cola as a part of Coca Cola is very important as the general concept for the company is only in the field of soft drinks. Promoting using the correct channel of marketing is very necessary in the same regards. Advertisements, pamphlets, bill boards, hoardings, through television and radio, free sampling, etc. the product is required to be made a part of the day to day life and come into the knowledge of the people. Studying the correct channels prior to the launching of the project and creating an urge or curiosity in the minds of the people for the new product is very necessary. Unlike the other products, which are consumed in warm weather, Milka-Cola is a dairy based product and so shall be in demand and utility all round the year. This makes the promotion to be very distinct and precise to make the right promotions through the right channels. The company should try to reach the customers and not for the customers to try to reach towards the product (Belch and Belch, 2007). 8.0. Conclusion Coca Cola is truly a global company with its presence in multiple countries and still trying hard to make its way into new markets with old products and into the old markets with new products and variations. The assignment has very well presented the internal and external factors through the SWOT Analysis, Marketing Mix, PESTEL and Porter’s Five Force Analysis. These studies surely shall influence the decision making towards the launching of the new product and provide success in its field. 9.0. References Belch, G.E. and Belch, M. A. 2007. Advertising and Promotion. An integrated marketing communications perspective. Seventh edition Curd, M. 2014. Marketing Plan: Coca-Cola in 2015, retrieved on 12-12-14 http://www.nice-cuppa-tea.co.uk/marketingplan.pdf Coca-Cola 2013/14 Sustainability Report, retrieved on 12-12-14 http://assets.coca-colacompany.com/1f/77/d19dc8424a91856ffd09378832f0/2013-2014-coca-cola-sustainability-report-pdf.pdf Johnson, G., Whittington, R. and Scholes, K. 2009. Exploring Corporate Strategy with MyStrategyLab, Financial Times/ Prentice Hall Kotler, P. and Armstrong, G. 2001. "Principles of Marketing" (9th Ed.). Prentice-Hall India Kotler,2001p.46 McDonald, M. and Wilson, H. 2011. Marketing Plans: How to Prepare Them, How to Use Them. 7th Edition, John Wiley Pitts, R.A. and Lei, D. 2000. Strategic Management: Building and sustaining competitive advantage; Southwest College Publishing, 2nd Edition Porter, M.E. 2008. Strategic. Competitive Forces that shape Strategy. Harvard Business Review. Cambridge: Harvard Press. Passport, 2013. COCA-COLA CO THE, SWOT ANALYSIS, IN SOFT DRINKS (WORLD), retrieved on 12-12-14 http://www.euromonitor.com/medialibrary/PDF/Coca-Cola-Co_SWOT_Analysis.pdf Weinstein, A. 2004. Handbook of market segmentation: strategic targeting for business and technology firms. 3rd edition. New York: Probus Publishing Co. Read More