Developing Marketing Plan For Soft Drink
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A marketing plan is a written document that details the necessary actions to achieve one or more marketing objectives. It can be for a product or service, a brand list of actions, a marketing plan without a sound strategic foundation is of little use. or a product line. Marketing plans cover between one and five years. A marketing plan may be part of an overall business plan. Solid marketing strategy is the foundation of a well-written marketing plan.
A marketing plan outlines the specific actions you intend to carry out to interest potential customers and clients in your product and/or service and persuade them to buy the product and/or services you offer.
The marketing plan implements your marketing strategy. Or, as I put it in my article, “The Key to Marketing: Use a Plan”, “the marketing strategy provides the goals for your marketing plans. It tells you where you want to go from here. The marketing plan is the specific roadmap that’s going to get you there. “
A marketing plan may be developed as a standalone document or as part of a business plan. Either way, the marketing plan is a blueprint for communicating the value of your products and/or services to your customers.
OBJECTIVES OF STUDY:
The main Objective of this assignment is to encourage the reading, writing Analytical & research skills among the students. Also students will get in depth knowledge of allotted topic.
Topic: Developing Marketing Plan For soft Drink
Model: The credentials that will be taken into consideration for evaluation are as follows:
1. Time of submission. 2. Clarity of ideas. 3. Comprehensiveness 4.Reasoning 5.References
Academic Integrity: Students found to have copied both, the one who copied and from whom copied, will be awarded Zero marks.
The Research designed that used in the term paper report is Descriptive Research. Descriptive research, also known as statistical research, describes data and characteristics about the population or phenomenon being studied. Descriptive research answers the questions who, what, where, when and how.
The description is used for frequencies, averages and other statistical calculations. Often the best approach, prior to writing descriptive research, is to conduct a survey investigation. Qualitative research often has the aim of description and researchers may follow-up with examinations of why the observations exist and what the implications of the findings are.
The whole population of the customers of various industry is the universe of the proposed study.
1. Convenient & Judgmental Sampling
2. Random Sampling
The study is conducted in Chandigarh & nearby areas.
Worker of the industry is the sampling unit in the proposed study.
A Sample of 100 was used to conduct this study. 50 samples filled the online questionnaire and the remaining filled the hard copy of the questionnaire.
Constant guide and support from faculty, seniors and peers was instrumental in the research success. Internet was an important tool for the research. Earlier work and findings were taken as help for the research method.
The Marketing Planning Process.
In most organizations, “strategic planning” is an annual process, typically covering just the year ahead. Occasionally, a few organizations may look at a practical plan which stretches three or more years ahead.
To be most effective, the plan has to be formalized, usually in written form, as a formal “marketing plan.” The essence of the process is that it moves from the general to the specific; from the overall objectives of the organization down to the individual action plan for a part of one marketing program. It is also an interactive process, so that the draft output of each stage is checked to see what impact it has on the earlier stages – and is amended..
Marketing planning aims and objectives
Marketing plan helps a firm in many ways, It heips not only in formulation of goal but also fulfilment of goal. In a sales-oriented organization, marketing planning function designs incentive pay plans to not only motivate and reward frontline staff fairly but also to align marketing activities with corporate mission.
This “corporate mission” can be thought of as a definition of what the organization is; of what it does: “Our business is this definition should not be too narrow, or it will constrict the development of the organization. The most important factor in successful marketing is the “corporate vision. If the organization in general and its chief executive in particular, has a strong vision of where its future lies, then there is a good chance that the organization will achieve a strong position in its markets.
Review of the marketing environment.
Review of the detailed marketing activity. A study of the company’s marketing mix; in terms of the 7 Ps.
Review of the marketing system. A study of the marketing organization, marketing research systems and the current marketing objectives and strategies. The last of these is too frequently ignored. The marketing system itself needs to be regularly questioned, because the validity of the whole marketing plan is reliant upon the accuracy of the input from this system, and `garbage in, garbage out’ applies with a vengeance. A study of the organization’s markets, customers, competitors and the overall economic, political, cultural and technical environment; covering developing trends, as well as the current situation.
Portfolio planning. In addition, the coordinated planning of the individual products and services can contribute towards the balanced portfolio.
80:20 rule. To achieve the maximum impact, the marketing plan must be clear, concise and simple. It needs to concentrate on the 20 percent of products or services, and on the 20 percent of customers, which will account for 80 percent of the volume and 80 percent of the profit.
7 P’s: Product, Place, Price and Promotion, Physical Environment, People, Process. The 7 P’s can sometimes divert attention from the customer, but the framework they offer can be very useful in building the action plans.
It is only at this stage (of deciding the marketing objectives) that the active part of the marketing planning process begins’. This next stage in marketing planning is indeed the key to the whole marketing process. The “marketing objectives” state just where the company intends to be; at some specific time in the future.
The marketing objectives must usually be based, above all, on the organization’s financial objectives; converting these financial measurements into the related marketing measurements.Simplifying somewhat, marketing strategies can be seen as the means, or “game plan,” by which marketing objectives will be achieved and, in the framework that we have chosen to use, are generally concerned with the 8 P’s. Examples are:
Price – The amount of money needed to buy products
Product – The actual product
Promotion (advertising)- Getting the product known
Placement – Where the product is located
People – Represent the business
Physical environment – The ambiance, mood, or tone of the environment
Process – How do people obtain your product
Packaging – How the product will be protected
Coca cola: marketing plan
Introduction to coca cola
The Coca-Cola Company was first established in 1886 by Dr John Styth Pemberton. Today, the company is the world’s leading manufacturer in the beverage industry, operating globally in more than 200 countries with its head office located in Atlanta, USA. It produces more than 300 beverage brands and over 1.06 billion drinks are consumed per day around the world.
It has already ventured regionally out of Atlanta to other states of United States since the late 19th century and its signature contour bottle was first manufactured in the early 20th century to distinguish themselves and assuring the genuine Coca-Cola. Though the company grew rapidly and roared into some European countries during the 1900s, its presence worldwide grew swiftly only after World War II.
Year after year, the company has been discovering new foreign markets to bring higher profits as to fulfil its ultimate obligation to provide consistently attractive returns to the owners of the company and to enlarge its customer base in order to achieve economies of scale. Due to strong competition with Pepsi-Cola, Coca-Cola wants to reduce its dependence on United States market, which is their similar domestic market, as to reduce its risk and increase its global market share by going international. Presently, the company has already reached six billion consumers in nearly two hundred countries.
Coca-Cola Company has been very successful in international marketing effort. Aggressive advertising, branding and market segmentation have played an important part in the success. It has portrayed itself as fun, playfulness, freedom, lifestyle and the international appeal of Coca-Cola was embodied by a 1971 commercial, where a group of young people from all over the world to a hilltop in Italy to sing “I’ll like to buy the world a Coke”.
The company has been sponsoring big events, like Olympics, Sea Games, FIFA Cup, and International Film Festivals all over the world to create awareness, credibility and to brand itself as world-class company. It also makes big donations to organizations, charities and involvement in the communities. These activities have aided Coca-Cola in creating a positive image and consumers’ perception toward the company.
Though the company makes the world its target market, segmenting by diverse consumer preferences would still required helping Coca-Cola to serve the consumers better. As different segments of different countries have various preferences or cultures, Coca-Cola tried to expand with new flavors, brands and even reduced the sugar contents in its Coke, to suit all the different segments. This often increases the acceptance of new drinks that are specially designed for them.
Coca-Cola entered foreign markets in various ways. The most common modes of entry are direct exporting, licensing and franchising.
Giant soft drink company Coca Cola has come under intense scrutiny by investors due to its inability to effectively carry out its marketing program. Consequently it is seeking the help of Polianitis Marketing Company Pty Ltd to develop a professional marketing plan which will help the business achieve its objectives more effectively and efficiently, and inevitably regain there iron fist reign on the soft drink industry.When establishing a re-birthed marketing plan every aspect of the marketing plan must be critically examined and thoroughly researched. This consists of examining market research, auditing business and current situation (situation analysis) and carefully scrutinizing the soft drink industry and possibilities for Coca Cola in the market. Once Coca Cola have carefully analyzed the internal and external business environment and critically examined the industry in general the most suitable marketing strategies will be selected and these strategies will be administered by effectively and continually monitoring external threats and opportunities and revising internal efficiency procedures.
The market analysis investigates both the internal and external business environment. It is vital that Coca cola carefully monitor both the internal and external aspects regarding it’s business as both the internal and external environment and their respective influences will be decisive traits in relation to Coke’s success and survival in the soft drink industry.
Internal Business Environment
The internal business environment and its influence is that which is to some extent within the business’s control. The main attributes in the internal environment include efficiency in the production process, through management skills and effective communication channels. To effectively control and monitor the internal business environment, Coke must conduct continual appraisals of the business’s operations and readily act upon any factors, which cause inefficiencies in any phase of the production and consumer process.
External Business Environment
The External business environment and its influences are usually powerful forces that can affect a whole industry and, in fact, a whole economy. Changes in the external environment will create opportunities or threats in the market place Coca cola must be aware off. Fluctuations in the economy, changing customer attitudes and values, and demographic patterns heavily influence the success of Coca Cola’s products on the market and the reception they receive from the consumers
The Mission Statement of the Coca Cola Company
Its mission statement is to maximize shareowner value over time. In order to achieve this mission, we must create value for all the constraints we serve, Including our consumers, our customers, our bottlers, and our communities. The Coca Cola Company creates value by executing comprehensive business strategy guided by six key beliefs::-
1. Consumer demand drives everything we do.
2. Brand Coca Cola is the core of our business
3. We will serve consumers a broad selection of the non alcoholic ready-to–drink Beverages they want to drink throughout the day.
4. We will be the best marketers in the world.
5. We will think and act locally.
6. We will lead as a model corporate citizen.
The ultimate objectives of our business strategy are to increase volume, expand our Share of worldwide nonalcoholic ready to drink beverages sales, maximize our long-term
Cash flows, and create economic value added by improving economic profit. The Coca Cola system has more than 16 million customers around the world that sells or serves our products directly to consumers. We keenly focus on enhancing value for these customers and helping them grow their beverage businesses. We strive to understand each customer’s business and needs, whether that customer is a sophisticated retailer in a developed market a kiosk owner in an emerging market .
There are nearly 6 million people in the world who are potential consumers of our Company’s product. Ultimately, our success in achieving our mission depends on our ability to satisfy more of their beverage consumption demands and our ability to add value for customers. We achieve this when we place the right products in the right markets at the right time.
Product Life cycle:
When referring to each and every product or service ever placed before the consumer i.e. in the long term all the existing products and services are dead. For e.g.:- Replacement of Ford Cortina ( a highly successful car) by Ford Sierra, the replacement of sierra by the Ford Mondeo and the replacement of the old Mondeo by the new Mondeo in 2001. So every product is born, grows, matures and dies. So in the commercial market place products and services are created, launched and withdrawn in a process known as Product Life Cycle. To be able to market its product properly, a business must be aware of the product life cycle of its product. The standard product life cycle tends to have five phases: Development, Introduction, Growth, Maturity and Decline. Coca-Cola is currently in the maturity stage, which is evidenced primarily by the fact that they have a large, loyal group of stable customers. Furthermore, cost management, product differentiation and marketing have become more important as growth slows and market share becomes the key determinant of profitability. In foreign markets the product life cycle is in more of a growth trend Coke’s advantage in this area is mainly due to its establishment strong branding and it is now able to use this area of stable profitability to subsidize the domestic Cola Wars.
Being the biggest company in the soft drink industry, Coca Cola enjoys the largest market Share. This company controls about 59% of the world market.
Has been operating successfully for over a century. Is known world-wide and operates in more than 200 countries. Coca-Cola has a large share of the cola segment – holding approximately 85 per cent. The Coca-Cola Company is the most recognized trademark in the world. Coca-Cola has been a complex part of world culture for a very long time. The product’s image is loaded with over-romanticizing, and this is an image many people have taken deeply to heart. The Coca-Cola image is displayed on T-shirts, hats, and collectible memorabilia. This extremely recognizable branding is one of Coca-Cola’s greatest strengths. Additionally, Coca-Cola’s bottling system is one of their greatest strengths. It allows them to conduct business on a global scale while at the same time maintain a local approach. The bottling companies are locally owned and operated by independent business people who are authorized to sell products of the Coca-Cola Company.
Weaknesses for any business need to be both minimized and monitored in order to effectively achieve productivity and efficiency in their business’s activities, Coke is no exception. Although domestic business as well as many international markets are thriving (volumes in Latin America were up 12%), Coca-Cola has recently reported some “declines in unit case volumes in Indonesia and Thailand due to reduced consumer purchasing power.”
Coca-Cola on the other side has effects on the teeth which is an issue for health care. It also has got sugar by which continuous drinking of Coca-Cola may cause health problems. Being addicted to Coca-Cola also is a health problem, because drinking of Coca-Cola daily has an effect on your body after few years.
Have significant growth opportunities. Has sufficient capital to expand. Has the potential to innovate and differentiate the company’s products to sustain a competitive advantage. May merge with other global businesses to eliminate competitors. Capable of expanding into other markets other than the soft drink market
Currently, the threat of new viable competitors in the carbonated soft drink industry is not very substantial. The threat of substitutes, however, is a very real threat. The soft drink industry is very strong, but consumers are not necessarily married to it. Possible substitutes that continuously put pressure on both Pepsi and Coke include tea, coffee, juices, milk, and hot chocolate. Even though Coca-Cola and Pepsi control nearly 40% of the entire beverage market, the changing health-consciousness of the market could have a serious affect. Of course, both Coke and Pepsi have already diversified into these markets, allowing them to have further significant market shares and offset any losses incurred due to fluctuations in the market. Consumer buying power also represents a key threat in the industry. The rivalry between Pepsi and Coke has produce a very slow moving industry in which management must continuously respond to the changing attitudes and demands of their consumers or face losing market share to the competition. Furthermore, consumers can easily switch to other beverages with little cost or consequence.
The company’s beverages are generally for all consumers. However, there are some brands, which target specific consumers.
For example, Coca-Cola’s diet soft drinks are targeted at consumers who are older in age, between the years of 25 and 39. PowerAde sports water target those who are fit, healthy and do sport. Winnie the Pooh sipper cap Juice Drink target children between the ages 5-12.
This type of market approach refers to market segmentation.
The Coca-Cola Company when advertising has a primary target market of those who are 13-24, and a secondary market of 10-39.
Coca-Cola main objectives are to supply everyone their favourites drink and to satisfy the consumer needs and wants. Coca-Cola second main objectives are to provide profit to the shareholders and increase the market share.
The objective is the starting point of the marketing plan. Objectives should seek to answer the question ‘Where do we want to go?’. The purposes of objectives include:
-> to enable a company to control its marketing plan.
-> to help to motivate individuals and teams to reach a common goal.
-> to provide an agreed, consistent focus for all functions of an organization.
All objectives should be SMART i.e. Specific, Measurable, Achievable, Realistic, and Timed.
Specific – Be precise about what you are going to achieve
Measurable – Quantify you objectives
Achievable – Are you attempting too much?
Realistic – Do you have the resource to make the objective happen (men, money, machines, materials, and minutes)?
Timed – State when you will achieve the objective (within a month? By January 2010?)
1. Market Share Objectives:
To gain 61% of the market for soft drinks industry by 2009.
2. Profitability Objectives:
To achieve a 20% return on capital employed.
3. Promotional Objectives
To increase awareness of the product on the market.
4. Objectives for Survival
To survive the current market war between competitors.
5. Objectives for Growth
To increase the size of the worldwide Coca Cola enterprise by 10% .
Marketing strategies and marketing mix
The Coca-Cola Company’s products include beverage concentrates and syrups, with the main product being finished beverages.
The business has over 300 brands of beverages around the world with the main ones being Coke, Fanta, Sprite, Frutopia 100% Fruit Juice, and PowerAde.
The Coca-Cola Company packages its beverages into plastic bottles of sizes 2 liters, 1.25 litres, 600mL and 300mL. These are also available in aluminium cans of 375mL.
Coca-Cola is the most well known trademark, recognized by 94 per cent of the world’s population. The business is very successful and holds a very good reputation.
Marketing strategies for product
The Coca-Cola Company uses marketing strategies to differentiate its product from its competitors to gain a competitive advantage. These are listed in the table below.
Marketing strategy Explanation of marketing strategy
Extension/product differentiation In 2002, the Coca-Cola Company extended the products of Coke and developed the new products Coke with lemon and Vanilla Coke. This extension:·Responded to consumer demands,enerated sales and profit.
Innovation In 2001, Coca-Cola had innovated and developed the introduction of purchasing the company’s products from vending machines via SMS messaging.In 2002, the company innovated and came up with a new packaging idea, the Fridge Pack. The Fridge Pack consists of cans packed 2-by-6. This innovation has:·Increased consumer awareness and preference. Increased rate of consumption and profitability.
The prices of Coca-Cola’s products vary according to the brand and the size. The prices of the main products are shown below.
ProductSizePrices (approx. not on sale prices)
Coke, Fanta, SpriteCoke, soft drinksPowerAde2L bottle1.25L bottle600mL bottle300mL bottle375 x 30 cans375 x 18 cans —$2.57$1.35$2.10 – $2.30$1.30$17.87$12.98$2.
Pricing Methods/Pricing strategies
The Coca-Cola Company’s products are sold in retail stores, convenient stores, petrol stations etc. The pricing methods/strategies are set by those the company sells to. Petrol stations and convenient stores usually sell Coca-Cola products at a fixed price.
However, retail outlet uses pricing methods and pricing strategies when selling Coca-Cola products.
Pricing methodExplanation of pricing method
Competition-based pricingCoca-Cola products are usually priced below, above or equal to its competitors’ prices. For example, during Easter (2003) sale periods (Coca-Cola vs. Pepsi):Coca-Cola soft drinks 2L – $1.68Pepsi soft drinks 2L – $1.87Coca-Cola soft drinks 375 x 18 – $9.98Pepsi soft drinks 375 x 24 – $9.98
Discount price Coca-Cola products are often marked down during sale periods and special occasions. This will:·Generate sales Increase profits
Pricing strategy Explanation of pricing strategy
Meet-the-competition pricing The Coca-Cola products pricing are set around the same level as its competitors.
Psychological pricing Most of the Coca-Cola products use this method of pricing. For example, for a pack of 375mL x 18 cans of Coca-Cola soft drinks it is priced at $9.98 instead of $10.00.This pricing strategy makes consumers perceive the products to be cheaper.
Place and Distribution:
The place P of the marketing mix refers to distribution of the product- the ways of getting the product to the market. The distribution of products starts with the producer and ends with the consumer.
One key element of the “Place/Distribution” aspect is the respective distribution channels that Coca Cola has elected to transport and sell its product.
Selecting the most appropriate distribution channel is important, as the choice will determine sales levels and costs. The choice for a distribution channel for any business depends on numerous factors, these include:
•How far away the customers are;
•The type of product being transported;
•The lead times required; and;
•The costs associated with transport;
There are four types of distribution strategies that Coca Cola could have chosen from, these are: intensive, selective, exclusive and direct distribution. It is apparent from the popularity of the Coca Cola’s product on the market that the business in the past used the method of intensive distribution as the product is available at every possible outlet. From supermarkets to service stations to your local corner shop, anywhere you go you will find the Coca Cola products.
Physical Distribution Issues
Coca Cola needs to consider a number of issues relating to the physical distribution of its soft drink products. The five components of physical distribution are, order processing, warehousing, materials handling, inventory control, transportation. Coca Cola must further try to balance their operations with more efficient distribution channels.
Order Processing- Coca Cola cannot delay their processes for consumer deliveries (i.e. delivery to selling centers), as this is inefficient business functioning and is portrays a flawed image of the product and overall business.
Warehousing and inventory control- warehousing of Coca Cola products is necessary. Inventory control is another important aspect of distribution as inventory makes up a large percentage of businesses assets.
Materials handling- this deals with physically handling the product and using machinery such as forklifts and conveyor belts. When holding products, then Coca Cola has benefited from purchasing or renting respective machinery.
Transportation- Transporting Coca Cola products is the one most important components of physical distribution. Electing either to transport the sports drink by air, rail, road or water depends on the market (i.e. global, or domestic?) and depends on the associated costs. The most beneficial transportation method for Coca Cola would be ROAD if the product were moved around from storage to the cost centers.
In today’s competitive environment, having the right product at the right place in the right place at the right time may still not be enough to be successful. Effective communication with the target market is essential for the success of the product and business. Promotion is the p of the marketing mix designed to inform the marketplace.
The promotional mix is the combination of personal selling, advertising, sales promotion and public relations that it uses in its marketing plan. Above the line promotions refers to mainstream media: Advertising through common media such as television, radio, transport, and billboards and in newspapers and magazines. Coca Cola has used this as the main form of promotion for extensive range of products. Although advertising is usually very expensive, it is the most effective way of reminding and exposing potential customers to Coca Cola Products.
Implementing, Monitoring and Controlling
Financial forecasts are predictions of future events relating strictly to expected costs and revenue costs for future years. There are five major marketing expenditures, which include research costs, product development costs, product costs, promotion costs and distribution costs.
Sales force composite is the most logical method in forecasting revenue. This involves estimates from individual salespeople to sell to work out a total for the whole business. Once these costs and revenues are forecasted, management can then decide which combination of marketing mix strategies will deliver the most sales revenue at the lowest cost.
Implementation is the process of turning plans into actions, and involves all the activities that put the marketing plan to work. Successful implementation depends on how well the business blends its people, organisational structure and company culture into a cohesive program that supports the marketing plan.
For its further success, Coca Cola must impose several key changes. Production needs to be on time and meet the quota demanded from wholesalers. It must also be efficient so as not to build inventory stocks and inventory prices. The marketing needs to be motivated and knowledgeable about the product.
Monitoring and Controlling
Monitoring and controlling allows the business to check for variance in the budget and actual. This is important because it allows Coca Cola to take the necessary actions to meet the marketing objectives. There are three tools Coca Cola should use to monitor the marketing plan. They are the following:
I. Sales Analysis
The sales analysis breaks down total business sales by market segments to identify strengths and weaknesses in the different areas of sales. Sellers of Coca Cola products vary from major retail supermarkets to small corner stores. This gives the its products maximum exposure to customers at their convenience.
ii.Market Share Analysis
Market share analysis compares Coca Cola’s business sales performance with that of its competitors. Coca Cola looks to increase its market share by over 60%. With the changes Coca Cola is currently undergoing, they aim to regain an iron fist control of the market. Target market various age groups and lifestyles from high school students too universities, and male or female.
Marketing Profitability Analysis
This analysis looks at the cost side of marketing and the profitability of products, sales territories, market segments and sales people. There are three ratios to monitor marketing profitability; they are market research to sales, advertising to sales and sales representatives to sales. The results of these three tools can help Coca Cola determine any emerging trends, such as the need for a different product. Comparing these results with actual results gives the business an idea on when to change.
When attempting to implement a new Marketing plan a business must address its target market and conduct the relevant information to insure the new marketing plan both differs from the old and is better for the business. When conducting market research a business must first define the problem and then gather the appropriate information to solve the problem. There are 3 types of information a business can gather to solve its problems.
Coca Cola through its market research has addressed all three types of research to define the problem raised by shareholders and gathered information to serve their needs.
Factors Influencing Consumer Choice
When making decisions on products a business must look at factors that influence consumer choice such as psychological factors, Sociocultural factors, Economic factors and Government Factors.
Psychological Factors: such as motivation, perception, lifestyle, personality and self concept, learning, and attitudes influence the consumers’ behaviour towards a product and Coca Cola has addressed this issue by introducing Diet Coke to satisfy different lifestyles.
Sociocultural factors: such as culture, subculture, socio-economic status, family and reference groups influence the consumers’ behaviour towards a product.
Economic factors: such as Disposable income and discretionary income. Coca Cola has addressed this side of the influence by maintaining a low price on the price of its products.
Government Factors: such as new regulations, inflation, interest rates all influence consumer spending and choice.
Coca cola one of the most famous brand and also market leader need no introduction. We can see how it has acquired the whole world. Marketing plan of any product takes a lot of procedure and plan. Coca Cola has proved to be the market leader in soft drink. It acquire the maximum.After thorough research, we come to the conclusion that the marketing strategy of Coca Cola is working for them and the product is gaining popularity among youth day by day.
• After completing our project we have concluded some recommendation for the coca cola company, which are following:- • Coca Cola Company should try to emphasis more on providing their • Infrastructure in the market to facilitate their customers.
• Coca Cola Company should produce their product according to the local demand. • Marketing team should try to increase the availability of Coke in rural areas. • They should also focus the old people.
• Now young generation has a trend to drink a coke 2 regular bottles at same • time, so providing more satisfaction to them company should introduce ½ litre • disposable bottle.