Internal Analysis
Coca-Cola Great Britain (CCGB) is seen to be associated to more than 20 brands and 80 drinks. There have been 134 people who are employed at our London HQ and they are responsible for looking after the development in terms of the existing brands (Coca-Cola 2017).
The report is intended to show the adoptions of various concepts associated to internal analysis, external analysis, and situational analysis, Marketing Strategies, marketing mix, action plan and budget and several types of the implementation and the control techniques applied to Coca Cola, UK. The various types the concepts associated to the product have been identified in terms of Diet Coca Cola. The different computations have been further seen in terms of application of SOSTAC model (Smartinsights.com. 2017).
The HR strategy should be able to focus on the recruitment for the new product launch
Technology development
The various type of the technological development has been already identified in terms of the “Coca Cola fructose corn syrup (HFCS)”.
The procurement strategy should be done based on the suppliers who are able to provide the best pricing strategy.
Water is identified as the major ingredient for Diet Coca Cola. It can resolve the various issues of the inbound logistics in terms of sourcing some of the best fleet operators to transport this in bulk quantity. The application of the SOSTAC has been identified in terms of Situation Analysis and strategy.
This has been seen in terms of sourcing some of the best suppliers who are seen to be identified to deal in the trade of the supplying the major identified ingredients. The application of the SOSTAC has been identified in terms of Situation Analysis and strategy.
The main strategy to be used in terms of the marketing and the sales tool has been directly identified in terms of the presence of the banner and the different type the application of the tool, which has been seen to be associated to the social networks and commercials. The application of the SOSTAC has been identified in terms of Actions and strategy.
The service level has been identified in terms of online chat feedback process with a virtual agent in official website of the company dedicated customer service phone. The application of the SOSTAC has been identified in terms of Tactics (Nice-cuppa-tea.co.uk. 2017).
The financial analysis of the business of Coca Cola has been identified in terms of the increasing net income and the various level of the operational profit of the company. The profit of the company has been further been identified in terms of the various factors which are seen to be useful in term of the increasing gross profit and the operating profit more than 2.5%.
Supply Chain Analysis
The external analysis of the task has been done in terms of the Macro Environment, Micro Environment, Buying Behavior, Industry Analysis and competitor’s analysis.
Macro Environment
Political: The political environment has been identified in terms of disturbance free political environment.
Environmental- The environmental analysis has been further identified in terms of the various types of environment, which is conducive to the general working environment.
Social – The companies has been seen to maintain the adequate level of the social compliance with the CSR incorporation. Coca Cola also needs to implement the same in terms of applying the significant concepts in terms of strategizing for Diet Coca Cola.
Legal – The legal aspects has been identified to regulate as per the corporations formed under the Companies Act 2006 (Dudovskiy 2015).
Technological- The several types of the technological aspect has been seen to be improving every year. The company has been further seen in terms of “Coca Cola to high fructose corn syrup (HFCS)”.
The main form of the buying behavior has been assessed in terms of the various types of buying behavior, which has been seen to be helpful in terms of all types of the existing consumers.
The industry analysis has been able to show the various levels of the competency in terms of the various types of the beverage companies and the industries as such.
The competitor’s analysis has been further able to show that the major competitors has been seen in terms of the PepsiCo, Dr Pepper Snapple Inc., Monster Beverage Corp., and Suntory Beverage & Food Ltd. The company needs to adopt a strategy to compete with such entities (Reference 2017).
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Strengths · Diet Coke has international reach with its existence within 200 nations · More than 500 brands for offering to consumers · Improved financial position · The company has strong association in global sports events and sponsorships · Highly efficient supply chin network that makes sure that all the beverages are assessable in most remote regions (Galician 2013). |
Weaknesses · Existence of pesticides traces within Diet Coke have adversely affected brand image · Increased competition within the carbonated beverages industry can result in increased fight for market share. |
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Opportunities · Increase its market reach within untapped nations · Popularising the less renowned products of Coca-Cola such as Diet Coke (Powell and Gard 2015). · Product portfolio diversity through entering within diet beverages industry for competing effectively |
Threats · Increased competition can result in decreased market share · Health consciousness people might avoid consuming aerated beverages that can affect sales o Coca-Cola products · Economic slowdown, inflation and instability |
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Threats · Exchange rates in several nations · Increased competition · Increasing problems of global warming |
Opportunities · Increasing population · Technological modification · Increasing demand for healthier beverages |
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Weaknesses · Observed as an unhealthy beverage · Decreased popularity within middle east · Fossil fuels use for preparing bottles |
Coca Cola can develop healthier beverages that are highly appealing that can also facilitate them with the increased competition threats (Galician 2013). |
Coca Cola requires manufacturing the diet coke so that they can develop a superior image along with targeting the increasing demand for healthier beverages. |
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Strengths · Increased market share · Brand’s consumer loyalty · Increased advertisement strategies |
Coca Cola has increased consumer loyalty so that they can consider increasing product cost to deal with distinct exchange rates. |
Increasing population has presented several markets that can be targeted by Coca Cola Company for increasing the market share (Kelly et al. 2015). |
The marketing objectives for the initiation of Diet Coke in UK are briefly explained as follows:
- Changing the brand image of Coca-Cola towards international or local responsible attitude
- Informing the target audience about the characteristics and advantages of the new product
- Enhancing sales depending on the estimated overtaking of carbonated drinks by health drinks within 2015
In the words of Chernev (2014), market segmentation is the technique to portion market into classes of potential consumers with identical needs and features for exhibiting identical purchase behaviour. In order to segment the UK market, Coca-Cola needs to develop different divisions in main UK regions and the heads of each division are required to report to the parent firm. However, Coca-Cola needs to provide autonomy to each division for carrying out the operations.
Along with this, the consumption would take place on areas like movies, restaurants and railway stations of UK. Finally, Diet Coke needs to segment its customers based on all age groups and income level (Foxall 2014).
External Analysis
The organisation needs to target various target segments with various advertisements. The primary global market of Coca-Cola falls under the age group of 10-25 years, while the secondary market consists of the age group of 25-40 years. Therefore, Coca-Cola needs to target its product towards the UK sub-segment, which is health conscious.
Coca-Cola is required to position its products as thirst quenching and refreshing. The products are required to bring joy, as observed the tagline of Coca-Cola, which is “little drops of joy”. Thus, Diet Coke needs to be marketed as high quality and consistent.
The Porter’s generic growth strategy in relation to Diet Coke of Coca-Cola is described as follows:
With the help of differentiation strategy, an organisation needs to place its product in a way that is not identical to the products falling in same category (Hollensen 2015). In order to initiate Diet Coke in the UK market, Coca-Cola needs to incur 20% on the budget on advertising for maintaining the differentiation strategy.
In order to achieve cost leadership in the UK market, Coca-Cola is required to produce on large scale for keeping the operational cost low. In addition, it needs to maintain a competitive pricing structure for gaining popularity in the UK beverage industry.
The focus strategy of an organisation needs to be developed upon forming cost as well as focus of differentiation (Kotler et al. 2015). In order to make the product successful, Coca-Cola needs to adopt mass marketing strategy for increasing the overall customer base.
Marketing mix of Coca Cola Company serves as the core marketing strategies for its diet coke product.
- Product- Diet coke is sparkling soft drinks of Coca-Cola Company with good flavour devoid of any sugar or calorie. Diet coke has a great success story for the Coca-Cola as it generated increased record sales and overtook its present brand of diet cola. There are several product segments of diet coke such as Diet coke lime, citrus Zest, cherry flavour and caffeine free flavour. It was sweetened with the use of artificial sweetener aspartame and has a distinct formula for production that was distinct from the original Coca-Cola recipe. Within 330 ml of diet coke, calorie content is 1.3 kilocalories (Powell and Gard 2015).
- Price- Diet Coke has used numerous pricing strategies to enhance its sales. The company must consider following skimming pricing policy in order to launch their products and then must follow competitive pricing policy due to introduction of identical products from its competitor within the market (Hastings and Domegan 2013).
- Place- Diet Coke has an efficient distribution network for marketing its products in a competent manner. It employs effective distribution policy and ensures that the products are available easily in all the grocery stores, corner markets, petrol pumps, supermarkets and the departmental stores. A diet coke can is easily accessible and can be purchased easily (Hannah et al.2014).
- Promotion- Diet Coke has targeted the health conscious individuals and young generation. The company must follow aggressive promotional strategy that can facilitate to tap several market segments and attain enhanced awareness and product visibility (Williams Jr and Williams 2017).
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Ending date |
Action and comments |
Needed resources |
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Launch of Diet Coke in mid June 2017 |
3-4 months after release |
Television commercial- Advertising needs to be based on focus group for assuring the effects it needs |
To be mentioned at the time after the availability of financial projections |
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As early as possible |
NA |
Press release- Coke needs to develop new press releases for depicting effective corporate social responsibility |
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Launch of Diet Coke in mid June 2017 |
3-4 months after release |
Sales promotion- Beginning minimisation in price for enhancing the market share |
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3 months after release |
5-6 months after release |
Sales promotion- Instant competition at the time of product purchase |
The forecasted budgets for the initiation of the new product are presented in the form of tables (Refer to Appendices, Appendix 1 and Appendix 2).
In order to implement the strategy, Coca-Cola needs to ensure timely production along with meeting the wholesaler demand. In addition, it needs to ensure that the inventory stocks and inventory prices need to be efficient. The marketer needs to be knowledgeable about Diet Coke for ensuring the product success in the UK market (Meffert 2013).
The sales evaluation needs to be controlled by breaking segments of the market for identifying weaknesses and strengths in different sales areas. Along with this, the company needs to target different groups in the market irrespective of their age and income level. Finally, the evaluation of market profitability is another tool, which Coca-Cola could use to track the profit margin, market segmentation and sales people.
Conclusion
The report is intended to show the adoptions of various concepts associated to internal analysis, external analysis, and situational analysis, Marketing Strategies, marketing mix, action plan and budget and several types of the implementation and the control techniques applied to Coca Cola, UK. The report revealed that the financial analysis of the business of Coca Cola has been identified in terms of the increasing net income and the various level of the operational profit of the company. From the situation analysis of Coca Cola it has been recommended that Coca Cola requires manufacturing the diet coke so that they can develop a superior image along with targeting the increasing demand for healthier beverages.
Reference List
Chernev, A., 2014. Strategic marketing management. Cerebellum Press.
Coca-Cola (2017). About Coca-Cola Journey | Coca-Cola GB. [online] Coca-cola.co.uk. Available at: https://www.coca-cola.co.uk/about-us/about-coca-cola-journey [Accessed 5 Apr. 2017].
Dudovskiy, J. (2015). Coca Cola Value Chain analysis – Research Methodology. [online] Research Methodology. Available at: https://research-methodology.net/coca-cola-value-chain-analysis/ [Accessed 5 Apr. 2017].
Foxall, G., 2014. Strategic Marketing Management (RLE Marketing) (Vol. 3). Routledge.
Galician, M.L., 2013. Handbook of product placement in the mass media: New strategies in marketing theory, practice, trends, and ethics. Routledge.
Hannah, D., Parent, M., Pitt, L. and Berthon, P., 2014. It’s a secret: Marketing value and the denial of availability. Business Horizons, 57(1), pp.49-59.
Hastings, G. and Domegan, C., 2013. Social marketing: From tunes to symphonies. Routledge.
Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education.
Kelly, B., Vandevijvere, S., Freeman, B. and Jenkin, G., 2015. New media but same old tricks: food marketing to children in the digital age. Current obesity reports, 4(1), pp.37-45.
Kotler, P., Keller, K.L., Manceau, D. and Hémonnet-Goujot, A., 2015. Marketing management (Vol. 14). Englewood Cliffs, NJ: Prentice Hall.
Meffert, H., 2013. Marketing-Management: Analyse—Strategie—Implementierung. Springer-Verlag.
Nice-cuppa-tea.co.uk. (2017). [online] Available at: https://www.nice-cuppa-tea.co.uk/marketingplan.pdf [Accessed 5 Apr. 2017].
Powell, D. and Gard, M., 2015. The governmentality of childhood obesity: Coca-Cola, public health and primary schools. Discourse: Studies in the Cultural Politics of Education, 36(6), pp.854-867.
Reference. (2017). What are Coca-Cola’s major competitors?. [online] Available at: https://www.reference.com/business-finance/coca-cola-s-major-competitors-b2949889620e3bf0 [Accessed 5 Apr. 2017].
Smartinsights.com. (2017). [online] Available at: https://www.smartinsights.com/wp-content/uploads/2012/07/SOSTAC.jpg [Accessed 5 Apr. 2017].
Williams Jr, R.L. and Williams, H.A., 2017. Origins of Today’s Marketing and Branding Strategies. In Vintage Marketing Differentiation (pp. 1-4). Palgrave Macmillan US.
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