Coca Colas Marketing Plan Fixing

7/21/2019 Coca Colas Marketing Plan Fixing

1/59

Page | 0


2/59

TABLE OF CONTENT

PageI. Executive summary 2

II. Introduction 2

1. Background 2

2. Missions 3

3. Vision 3

4. Values 3

III. Marketing Environment Analysis 4

1. Macro Environment 4

2. Micro Environment: Porters ive orces Model 13

3. !nternal

I. Marketing Analysis

1. Positioning

2. Marketing Mi"

3. #$%&

4. #$%& 'nal(sis

. !ey issues

I. Marketing "lan

'. %)*ectives

B. Marketing #trateg(

+. 'ction Plan

II. Controls

III. #e$erences

Page | 1


3/59

I. Executive %ummary&+oca +ola +om,an( is t-e orlds leading so/t drink maker o,erates in

more t-an 200 countries around t-e orld and ons or licenses more

t-an 00 )rands o/ nonalco-olic )everages.&-is ,a,er is a marketing ,lan recommended /or +oca +ola +om,an(.

irstl( e are going to anal(e t-e +oca +ola +om,an( PE#&E

Marketing Mi" and #$%&5. &-en t-ere are some ke( issues regarding

+oca +ola +om,an( concluded a/ter t-e anal(sis. 'nd 6nall( e -ave

gave solutions /or +oca +ola to solve t-e issues.II. Introduction&

1. Background:+oca7+ola also +oke5 -istor( )egan in 1889 -en t-e curiosit( o/ an

'tlanta ,-armacist r. ;o-n #. Pem)erton led -im to create a

distinctive tasting so/t drink t-at could )e sold at soda /ountains. +oca7+ola? as ell as

designing t-e trademarked distinct scri,t still used toda(.&-e 6rst time a,,ear o/ +oca +ola in Vietnam is in 1A90. '/ter t-at

+oca7cola !ndoc-ina Pte +om,an( as esta)lis-ed ociall( in Vietnam

on 'ugust 1AA. #ince t-en +oca7cola -as some locations in Vietnam

-ic- ere united as one Beverage +om,an( called +oca7cola Vietnam

it- t-e -ead oce located in &-u uc istrict


4/59

2. Missions:+oca +ola identi6ed t-eir missions are:

o &o re/res- t-e orld 7 in mind )od( and s,irit.o &o ins,ire moments o/ o,timism 7 t-roug- our )rands and

actions.o &o create value and make a diCerence ever(-ere e engage.

3. Vision: &o ac-ieve a)ove missions +oca +ola +om,an( -as develo,ed

a set o/ goals -ic- t-e( ill ork it- t-eir )ottlers to deliver:

o "ro't&Ma"imising return to s-are-olders -ile )eing mind/ul o/

our overall res,onsi)ilities

o "eo(le&Being a great ,lace to ork -ere ,eo,le are ins,ired

to )e t-e )est t-e( can )e

o "ort$olio&Bringing to t-e orld a ,ort/olio o/ )everage )rands

t-at antici,ate and satis/( ,eo,leDs desires and needs

o "artners&urturing a inning netork o/ ,artners and )uilding

mutual lo(alt(

o "lanet&Being a res,onsi)le glo)al citien t-at makes a

diCerence

o "roductivity&Be a -ig-l( eCective lean and /ast7moving

organisation

4. Values: +oca +ola s-ared values t-at t-e( are guided )( are:

o eaders-i,o Passiono !ntegrit(

Page | 3


5/59

o 'ccounta)ilit(o +olla)orationo !nnovationo Fualit(

III. Marketing environment analysis&

1. Macro environment:a. Political:

Government -as t-e ,oer to set 6nes /or t-e com,anies not meeting

t-eir standard la reHuirements. &-e c-anges in las and regulations

suc- as ta" ,olic( government regulations social el/are ,olicies

,olitical risks mig-t aCect t-e com,an( as ell as t-eir entr( in /oreign

countries. &-e ,olitical conditions even t-e civil con=ict can im,act to

t-e markets and ot-er governmental c-anges t-at aCect t-eir a)ilit( to

,enetrate t-e develo,ing and emerging markets t-at involves t-e

,olitical and economic conditions.


6/59

tec-nolog( t-at agenc( is dicult to determine t-e actual cost o/

in,uts Vietnam )usinesses s,end. +oca +ola according to t-e ta"

agenc( costs =avorings im,orted /rom t-e ,arent com,an( accounts

/or a)out J078 K o/ t-e cost o/ ,lant in Vietnam. &-e data cannot )e

determined )( t-e agenc( )ecause o/ not knoing -et-er t-e

,ro,ortion o/ =avor additives /rom +oca +ola ,arent com,an( in

Vietnam is com,ared to ot-er markets to ,ut conclusions.


7/59

$rograms in schools.i&-is regulation cares a)out t-e (out-s -ealt- as

ell as nutrition. &-is led to o)esit( among students and it aCected

directl( to t-e )usiness o/ +oke +om,an( in t-at ,eriod. Moreover t-e

restrictive legislation i/ it enacted /or a long time idel( it could

im,act on t-e +om,an(s ,roducts image and re,utation as ell.

%ocial *el$are (olicies

+oca cola oCer -ig-7Hualit( )rands and re,utation in man( countries

on over t-e orld. +om,an( signi6cantl( understand and )elieve t-at

ever(one s-ould -ave )ene6t. &-e )usiness s-ould )ring )ene6t and

re/res-ment to t-e ,eo,le -ic- is central to t-e a( &-e +oca cola

o,erate in communities around t-e orld. &-e com,an( ,la(s t-e role

as a good neig-)or and res,onsi)le citien )( -el,ing ,eo,le. !n

Vietnam t-e com,an( set u, man( regional and local /oundations

organied c-arit( ,rograms in local. #ome realit( ,rograms suc- as

>Vietnam ,us-carts ,rogram? L -el,ing economicall( disadvantaged

omen )uild sustaina)le liveli-oods >#u,,orting education and (out-

develo,ment? sc-olars-i,s to su,,ort students in orienting and

develo,ing career in t-e /uture

%verall Vietnam -as a stead( ,olitical condition. 'll a)ove ,ose

o,,ortunities /or +oca cola Vietnam to develo, t-e re,utation it-

social ,rograms. &-e( do t-ese ell to gain t-e ,eo,le su,,ort.


8/59

The opportunities for %oca %ola are &ocial "elfare $olicies to

im$roe their image. The threats are 'a! $olicy, goernment regulations to disclose

negatie information and labels.b. (conomic:

Economics -as a -uge im,act to t-e )usiness o/ +oca +ola com,an(.

&-e econom( in Vietnam is groing ra,idl(. !t is advantages /or t-e

com,an(Ds o,erations. 'nnounced N 300 million investment in Vietnam

in 3 (ears to 201 ,resident o/ +oca7+ola Mu-tar Oent said t-at t-is

as still an attractive market as consum,tion o/ ne ,eo,le it- 20K

o/ t-e average orld.

!n Vietnam t-e amount o/ +oca cola users is com,etitive it- man(

ot-er )everage com,anies. Vietnam is a attractive market /or domestic

and /oreign )everage com,anies. !nternal com,an( o,erating in t-is

industr( suc- as &an


9/59

&-is grot- ill rise ,rices o/ goods and encourage customer to

s,ending tig-tl(.

Moreover t-e in=ation also eCect on t-e ,rice o/ goods.

%oca)cola in*ation ad+usted $rice from 1- to end of May 201/

Vietnam -as a -ig- in=ation rate ,er (ear. !t is also control )( t-e

government )ut its level still im,act to t-e com,an(s o,eration and

,articularl( aCects to t-e ,rice o/ +oca +olas ,roducts. !n addition t-e

in=ation rate o/ Vietnam econom( also -as )een =uctuating /or (ears

-ic- also aCect directl( to +oca +ola consum,tion in an une",ected

a(.

The opportunities: consum$tion $atterns make im$acts in

gro"ing beerage consum$tion in ietnam market.

The threats: n*ation rate reuire to increase the $rice of

$roducts. &o the $rice com$etition also increase.

c. &ocial, demogra$hic:

Page | 8


10/59


11/59

entertainment )everage. %t-erise t-e (out- trend to drink +oke

more t-an t-e older or t-e kids.

The opportunities: 3emogra$hy make increase demand for healthy food

and beerage.

ncome distribution, buying habits lead to the

gro"ing bottled "ater consum$tion

The threats: 3emogra$hy, income distribution 4the less

cro"ded the $laces are, the less $roducts com$any can sale.5

d. 'echnological:

&ec-nological tec-niHues are valued. &-is creates o,,ortunities /or ne

,roducts and advanced ,roducts.


12/59

increasingl( ecient in use o/ resources. &-is is reHuired ne

investments in tec-nolog( innovation a signi6cant amount o/

colla)oration t-roug-out t-e +oca7+ola s(stem. 'cceleration o/

innovations around ater ,ackaging eHui,ment energ( and

agricultural resources ill ena)le +oca colas s(stem to meet t-e ne

market demands.

Internet leads to t-e ecienc( o/ com,an(Ds advertising marketing

and ,romotional ,rograms. &-e ne tec-nolog( advances o/ television

and internet t-at use incom,ara)le eCects /or advertising t-roug- t-e

use o/ media. &-ose advances make t-e ,roducts seem attractive. &-is

su,,orts t-e selling ,romotion o/ t-e ,roducts. +oca7+ola in media

tends to use t-is tec-nolog( so to sell eCectivel( its ,roducts.

The opportunities:esearches, high technology, internet

The threats:nternet hae a bad sight also 4any scandals can

s$read "idely and uickly5

&ec-nolog( is good and )ad too. !t can contri)ute to t-e im,rovement

)ut getting don i/ carelessl(. &-e im,ortant is -o to use it.

e. (nironmental:

&-e +oca cola ork /or lo car)on ,roducts ero aste )usiness and

ins,ire and lead c-ange /or a more sustaina)le /uture. +oca +ola

orked it- t-e +ar)on &rust to calculate t-e car)on /oot,rint to make

t-e )usiness more environmentall( res,onsi)le. #ince 1AA4 t-e

Page | 11


13/59

+om,an( -as managed to reduce t-e eig-t o/ our ,lastic )ottles )(

38.K. 't t-e same time +okes glass )ottles are alread( 3JK rec(cled

and cans are 0K rec(cled aluminum. &-e +om,an( also introduced

Plant Bottle ,ackaging in 2011 -ic- is 100K rec(cla)le and made

,artl( /rom sustaina)le ,lant materials reducing t-e reliance on /ossil

/uels /or ,lastics.

#eason /actor also is an im,ortant /actor. Products o/ coke are

mentioned as )everages -ic- -el, ,eo,le to slake. !ts most suita)le

/or summer -en t-e eat-er is -ot. &-ere/ore t-e consum,tion is

eCected on season. !n summer t-e demand o/ )everages is increasing

it make consum,tion also ill )e increased.

The threats:unsafe enironment and $roduct

f. 7egal:

Com(etitive la*s are t-e im,ortant las /or )usiness and t-eir same

sector com,anies /or a -ealt-( market.


14/59

ater air ... &-e la sti,ulates t-e alloed level o/ t-e to"ic astes

into t-e environment. !/ e"ceeded t-ese )usinesses can )e 6ned or

sus,ended )usiness i/ to"ic levels -arm to environment unacce,ta)l(.

Vietnam ,ut a great concern in t-ese issues noada(s. &-ere are man(

com,an( violated t-is la o/ environment ,rotection. 'are o/ t-is

issue +oca cola usuall( organie ,rogram /or environmental ,rotection

suc- as t-e


15/59

orr( and not )elieve in unde6ned drinks and /oods. +oca7+ola

Vietnam customers accused o/ )eing I,rimeI t-e )ottle mold Minute

Maid &e,,( /res- orange *uice5 t(,e o/ 240ml aCecting t-e -ealt- o/

consumers. !n t-e document dated %cto)er 2A +oca7+ola une",lained

mold =oating on t-e ater )ottle containing an(t-ing -et-er

-aardous or not -ic- s-os t-at t-e to )ottles o/ orange *uice

Minute Maid &e,,( client as /ound ong 'n is onl( ,resent in t-e

Iisolated incidentI occurred in manu/acturing s-i,ment. &-is document

is /or t-at reason IerrorI in t-e )ottle is due to t-e can Ino longer make

)ottle ca, securit( tig-tness. &-is is unreasona)le.

'll a)ove is to link to t-e success o/ +oca +ola so t-at t-e( surel(

kee,s t-e ,romise o/ Hualit( ,roducts and services. ocuments o/ las

or regulation statements -el, &-e +oca cola maintain and im,rove

t-eir re,utation.


16/59

&o enter t-e so/t drink industr( it reHuires -ig- 6"ed costs /or

,roduction are-ouses trucks la)or and marketing activities. 's

t-ere are limited )ottlers ne entrants ma( need to )uild t-eir )ottling

,lants. !t reHuires large amount o/ ca,ital. &-is makes it e"tremel(

dicult /or an entrant to com,ete it- t-e incum)ents and gain an(

visi)ilit(.

Customer Loyalty/ Brand Image

+oke -as a long -istor( o/ -eav( advertising. &-is makes t-em

dominate it- t-eir strong )rand name and lo(al customers all over

t-e orld. &-is makes it virtuall( im,ossi)le /or a ne entrant to matc-

t-is scale o/ s-are in t-is market.

Fear o$ #etaliation

!t is ver( dicult to enter into a market ,lace -ere alread( ell7

esta)lis-ed ,la(ers are ,resent suc- as +oke and Pe,si in t-is industr(.

#o t-ese ,la(ers ill not allo an( ne entrants to easil( enter t-e

market. &-e( ill give a toug- time to ne entrants -ic- could result

into ,rice ars ne ,roduct line etc in order to in=uences t-e ne

comers.

b. 'he threat of substitutes $roducts Medium

&-is industr( is enric-ed it- enormous statistics o/ su)stitutes suc-

as: ater tea )eer *uices coCee etc ,resented to t-e end7

consumers. 's consumers concern more a)out -ealt- )ottled ater

and s,ort drinks are increasingl( ,o,ular. &-is trend is e,itomied in

Page | 1


17/59

t-e )everage consum,tion ,attern o/ t-e ageing )a)( )oomers. But all

t-e su,,liers o/ t-ese su)stitutes need massive advertising )rand

eHuit( )rand lo(alt( and making sure t-at t-eir )rands are eCortlessl(

accessi)le to t-e consumers. Most o/ t-e su)stitutes cannot

counter,art t-e e"isting ,la(ersD oCers or diversi/( )usiness )( oCering

ne ,roduct lines o/ t-e su)stitute ,roducts to sa/eguard t-emselves

/rom rivalr(

Aggressiveness o$ su,stitute (roducts in (romotion

#o/t drink industr( com,anies s,end -uge amount o/ mone( on

advertisement and marketing to diCerentiate t-eir ,roducts /rom

ot-ers and also create )rand eHuit( )ase o/ lo(al customers and

increase visi)ilit(

%*itc+ing cost

#itc-ing cost o/ t-e su)stitute ,roducts is ver( lo so consumers can

easil( s-i/t toards t-e su)stitute ,roducts.

"erceived (rice/ value

Perceived ,riceS value in t-is industr( is ver( lo )ecause all ,roducts

are com,arativel( same and are onl( diCerentiated )( ,romotional

activities.

Page | 19


18/59

c. 8argaining $o"er of &u$$liers 7o"

&-e +oca +ola +om,an( is t-e largest )everage ,roducer in t-e orld

and e"erts signi6cant ,oer over its su,,liers to receive t-e loest

,rice availa)le /rom t-em.

Most o/ t-e ra materials desira)le to manu/acture so/t drink are )asic

merc-andise suc- as =avor color caCeine sugar and ,ackaging etc.

&-e su,,liers o/ t-ese commodities -ave no )argaining ,oer over t-e

,ricing due to -ic- t-e su,,liers in so/t drink industr( are relativel(

eak.

Num,er o$ im(ortant su((liers

@a materials /or so/t drink are )asic commodities -ic- are easil(

availa)le to ever( ,roducer and -ave lo cost -ic- makes no

diCerence /or an( su,,lier.

%*itc+ing cost

'll t-e ra material ingredients are )asic merc-andie and easil(

accessi)le to manu/acturer. #itc-ing cost to t-e su,,liers is ver( lo

manu/actures can easil( s-i/t toards t-e ot-er su,,liers.

Availa,ility o$ su,stitutes

#o/t drink ,roducts -ave standard ra material ingredients -ic- could

not -ave an( alternatives or used instead o/ t-e actual ingredients

T+reat o$ $or*ard integration

Page | 1J


19/59

&-reat o/ /orard integration is ver( lo in t-is industr( )ecause

manu/actures o/ t-e so/t drinks need -uge manu/acturing ,lants

)ottling netork strong distri)ution netork and )est s-el/ s,ace.

#u,,liers could not aCord suc- kink o/ ell7esta)lis-ed netork.

Im(ortance o$ ,uyer industry to su((liers

#o/t drink industr( is ver( im,ortant to t-e su,,liers )ecause )u(ers

,urc-ase larger amount o/ ra material. &-is encourages su,,liers to

remain in good contact it- )u(ers.

%u((liers0 (roduct an im(ortant in(ut to t+e ,uyer0s

Product o/ t-e su,,liers is ver( im,ortant in,ut /or t-e manu/acturers

in t-is industr( )ecause t-ese ,roducts do not -ave an( su)stitute

d. 8argaining $o"er of 8uyers 9igh

&-e )u(ers o/ +oca7+ola and ot-er so/t drinks are mainl( large grocers

convenience stores su,ermarkets and restaurants. &-e so/t drink

com,anies distri)ute t-e )everages to t-em /or resale to t-e

consumer. &-e )argaining ,oer o/ t-e )u(ers is strong. arge grocers

convenience stores su,ermarkets and /ast /ood restaurants )u( large

volumes o/ t-e so/t drinks -ic- allo t-em to )argain a loer ,rice.

Besides it- end7user t-e( -ave man( c-oices )ecause o/ diversit( in

)everages ,roviders. Moreover in t-e currentl( -ealt-( drinks are

more concerned. &-ere/ore )u(ers can -ave a larger )argaining ,oer

on t-e so/t drink.

Page | 18


20/59

e. %om$etitie rialry "ithin industry 9igh

&-e industr( is almost dominated )( t-e +oke and Pe,si. &-is industr(

is ell knon as a dou,ol( it- +oke and Pe,si as t-e com,anies

com,eting. &-ese )ot- ,la(ers -ave t-e ma*orit( o/ t-e market s-are

and rest o/ t-e ,la(ers -ave ver( lo market s-are. %t-erise

com,etition is com,arativel( lo to result an( turmoil o/ industr(

structure.

&-e com,etitive ,ressure /rom rival sellers is t-e greatest c-allenging

/aced )( +oca7+ola. Pe,si+o is t-e main com,etitor /or +oca7+ola and

t-ese to )rands -ave )een in a ,oer struggle /or more t-an a

centur(. Pe,si+o is 6ercel( com,eting it- +oca +ola over market

s-are. +oke and Pe,si ,rimaril( are com,eting on advertising and

diCerentiation rat-er t-an on ,ricing. &-is resulted in -ig-er ,ro6ts and

disalloed a decline in ,ro6ts. Pricing ar is nevert-eless e",erienced

in t-eir glo)al e",ansion strategies. Moreover t-ere are some rivals o/

+oca +ola in Vietnam market suc- as $onder arm &ri)eco &Tn


21/59

Fixed %torage cost

&-is industr( needs -uge manu/acturing ,lants and contracts it-

)ottling netork com,anies. &-ese contracts make sure t-at )ottlerDs

must -ave standard manu/acturing ,lant t-ese ,lants need -uge

ca,ital and e"ertion.

-egree o$ di1erentiation

Marketing and ,roduct diCerentiation -ave )ecome more signi6cant.

+oke and Pe,si mainl( are com,eting on advertising and diCerentiation

rat-er t-an on ,ricing. +oke -as diverse advertisement cam,aigns

according to conditions. +oca7cola is recognied as t-e )et7kno )rand

name in t-e glo)e. More ,rominetl( its consumers ould not do

it-out it and -ave esta)lis-ed a lo(alt(.

Page | 20


22/59

%trategic %take

+okeDs core o,eration is t-e manu/acturing and distri)ution )ot- /or

itsel/ and )eneat- /ranc-ise o/ non7alco-olic )everages and related

,roducts. Because o/ t-e strategic stake t-e main )rands o/ t-e +oke

-as )een around /or a lot o/ (ears

3. !nternal:a. Distinctive competency The world leader in soft drink industry

Coca Cola has strong brand recognition across the globe. The company has a leading

brand value and strong brand porfolio. According to Business Insider, approximately

94 of the !orld population a!are of the red and !hite logo of Coca Cola, and "Coca

Cola# is the $ndunderstandable !ord in %nglish. There are nearly &',4(' Coca)Cola

products are consumed in the !orld in each second. Interbrand, a branding consultancy,

ran*s Coca Cola the top leading brands in their best global brands ran*ing in $''9 and

$'&'. In $'&+, it valued Coca Cola at -/9,$&+ million.

Best Golobal Brands 20!" #eport of $nterbrand

Besides, Coca Cola o!ns a large porfolio of product brands0 more than ('' brands, !ith a

profolio of more than +,('' beverages1 product lines include diet and regular spar*ling

beverages, &'' fruit 2uices, fruit drin*s, !aters, sports and energy drin*s, teas and

coffees, and mil*. It o!ns and mar*ets four of the !orld3s top five soft drin* brands0

Page | 21


23/59

Cocacol, iet Co*e, -prite, and 5anta. The fact sho! that Coca Cola no! significant

focus on carbonated drin*s and forget about diversify product portfolio.

The best global brand in the world is strength of Coca Cola, it helps company

gained t+e *orld2s largest market s+are in ,everage Significant focus on carbonated drinks and undiversified product portfolio

are weaknesses of Coca Cola.

b. esources:Tangible

7 6anufacturing factories0 Coca Cola has + manufacturing factories in 7ietnam

located in 8o Chi 6inh city, 8anoi, and a ang. In $'&&, this three factories

!ere merged under centrali:e management structure, the factory in 8o Chi 6inh

city plays the *ey roles, and the t!o others became subsidiaries of the Coca Cola

7ietnam in northern and central coast.;ith three direct manufacturers in 7ietnam, Coca Cola ma*es sure about their

number of products provided, saves both time and money instead of importing

from Coca Cola overseas.7 6aterials

< =a! materials0 carbonated !ater, high fructose corn syrup, caramel color,

phosphoric acid, natural flavors, caffeine< 6aterials0 coca leaves > produced by -tepan company ?Illinois, America@, high

uality bottles > produced by ynaplast ac*aging 7ietnam C., carton boxes

and paper pac*ages > produced by Bien 8oa DTC.7 istribution chanel0 Coca Cola uses parallel distribution system, include & level

chanel and $ levels chanel.

< & level chanel0 Coca Cola distributes products directly to ma2or consumption

points such as supermar*ets ?6etro, BigC,E@ and *ey accounts > restaurants,

hotels,E !here have large sales number< $ levels chanel0 Coca Cola uses sole distributors, !holesalers and retailers to

expand their products coverage. In $''9, Coca Cola has (F sole distributors and

4G !holesalers in 8anoi, each of them ta*e responsible for &,$'' retailers

The most extensive beverage distribution channel is a strength of Coca

Cola

Page | 22


24/59

Intangible

7 Technological resources0 Coca Cola o!ns numerous patents, copyrights and trade

secrets, as !ell as substantial*no!)ho! and technology. This technology

generally relates to the products and the processes for production1 the pac*ages1

the design and operation of various processes and euipment used in business1 and

certain uality assurance soft!are. -ome of the technology is licensed to suppliers

and other parties.

Page | 23


25/59

7 Intellectual property0 Coca Cola o!n numerous trademar*s that are very

important. Trademar*s are valid as long as they are in use and their registrations

are properly maintained. Besides, Coca Cola is a very po!erful brand !ith strong

identity and huge value ?according to the Annual report $'&+ of Interbrand

consultant company@

The intangible resource is a distinctive advantage of companyc. %tron& finance back&round and &ood financial performance

In $'&$, Coca Cola gained -4G billion in revenue eual to the /' thlargest economy in

the !orld. ;hen Coca Cola penetrated in 7ietnam mar*et, they invested -&F+ million

on building infrastructures and distributors. Annual revenue in 7ietnam mar*et is

approximate -+G,('' million. In $'&$, Coca Cola announced a ne! investments !orth

-+'' million in 7ietnamin the next three years, and the total investment during the

period from $'&' to $'&( up to -('' million. This ne! investments !ill be used to

build ne! infrastructures, branding, create more ne! 2obs, and implement sustainable

development programs in order to catch the opportunities, enhance cooperation !ith

domestic customers and support community.

Strong finance background is an advantage helps Coca Cola to invest and

develop more infrastructures and distribbutors

Page | 24


26/59

I. Marketing Analysis&1. Positioning:

+oca +olaDs )rand ,ositioning to consumers as car)onated so/t drink

o. 1 in t-e orld 7 a o.1 trademark ,roduct o/ orld. +urrentl(

+oca7+ola still ,lace at t-e t-ird ,osition in t-e list o/ to, )rands

it- a value o/ W.#. NJA.2 )illion in 2013. +oca +ola is a glo)al )rand

and A8K ,eo,le in t-e orld kne +oca +ola.&-e ta)le )elo s-os t-e )rands value o/ to, 10 leading )rand in

t-e orld /rom 200A to 2013:

's a )everage ,roduct makes ,eo,le aake and strong to )ack

)ring amaing ,leasure. +oca7+ola still kee, as a s(m)ol o/ trust

t-e in-erent uniHueness.&-e ,romise o/ +oca7+ola: IBring )ene6ts and en*o(a)le /or all

t-ose -o are served )( usI t-e com,an( strives to make I/res-

ne Imarket enric-ing t-e ork,lace environmental ,rotection

Page | 2


27/59

and strengt-ening ,u)lic media. &-roug- its activities and t-e 6rst

ste, on t-e ,at- o/ diCerent develo,ment t-e )enevolent eCorts o/

t-e com,an(Ds /ocus on education and )uild dreams /or (out-.

#logan: I'll our customers in t-e orld are ,eo,le -o deserve to

en*o( t-e )est Hualit( )everageI.+oca +ola lead /ar aa( Pe,si in t-e )everage market in t-e orld

)ut t-e various sectors o/ t-e Pe,si )usiness -el,ed it earn more

mone(. #,eci6call( t-e market s-are o/ +oke drinks is 42K

com,ared to 31K o/ Pe,si )ut +okeDs annual revenue reac-ed onl(

3.2 )illion com,ared it- J.8 )illion 6gure o/ Pe,si. Eac- (ear

+oke s,ent N 2 )illion on advertising -ile Pe,si onl( N 1.1 )illion

loss /or t-is activit(.

!n t-e conte"t o/ social netorks )ecoming more ,oer/ul toda(

+oca7+ola and Pe,si )ot- use social netork to serve /or )randing. !t

looks like +oke leads on t-e social netork. +oke -as 13A 900

em,lo(ees com,ared it- 2A4000 staC orking /or Pe,si.


28/59

some 142 J99 ,eo,le atc-ed Pe,si. %n ace)ook +oke -as over

80 million /ans com,ared to 31 million o/ Pe,si.2. Marketing Mi":

a. Products:

+oca7+ola is t-e most ,o,ular and )iggest7selling so/t drink in

-istor( as ell as t-e )est7knon )rand in t-e orld.

+oca7+ola mig-t oe its origins to t-e Wnited #tates )ut its

,o,ularit( -as made it trul( universal. &oda( (ou can 6nd +oca7+ola

in virtuall( ever( ,art o/ t-e orld.

oada(s +oca7+ola +om,an( -as given man( kinds o/ +oca7+ola

,roducts suc- as:

Page | 2J


29/59

o %oca)%ola %lassico 3iet %oke: also knon as +oca7+ola lig-t is a sugar7 and calorie7

/ree so/t drink it- a deliciousl( cris, taste t-at gives (ou a lig-t

)oost in (our )us( da(. &oda( iet +okeS+oca7+ola lig-t is one o/

t-e largest and most success/ul )rands o/ &-e +oca7+ola

+om,an( availa)le in over 10 markets around t-e orld.o %oca)%ola ero: as created it- (oung adults in mind and

oCers great +oke taste u,li/ting re/res-ment and ero sugar.

!n Vietnam market +oca7+ola +lassic and iet +oke +oca7+ola

lig-t5 is ,o,ular t-an +oca7+ola Qero.

!n additions +oca7+ola Vietnam -as continued doing researc-

and develo,ing more ,roducts to serve Vietnamese consumers:

o anta: it- %range #tra)err( and ruit taste. anta is t-e

second oldest )rand o/ &-e +oca7+ola +om,an( and our second

largest )rand outside t-e W#. anta %range is t-e leading =avor

)ut almost ever( /ruit gron is availa)le as a anta =avor

Page | 28


30/59

some-ere. +onsumed more t-an 130 million times ever( da(

around t-e orld consumers love anta /or its great /ruit( taste.o #,rite: #,rite is t-e orldDs leading lemon7lime =avored so/t

drink. #,rite is sold in more t-an 1A0 countries and ranks as t-e

o. 3 so/t drink orldide it- a strong a,,eal to (oung ,eo,le.

Millions o/ ,eo,le en*o( #,rite )ecause o/ its cris, clean taste

t-at reall( Huenc-es (our t-irst. But #,rite also -as an -onest

straig-t/orard attitude t-at sets it a,art /rom ot-er so/t drinks.

#,rite encourages (ou to )e true to -o (ou are and to o)e(

(ou.o #c-e,,es &onic and #odao asani atero #amurai energ( drinkso Minute Maid /ruit *uiceo %t-ers

&egmentation in ietnam market: +oca7+ola +om,an( noticed t-at

Vietnam is a diverse market so +oca7+ola as oriented its ,roducts

into t-e (out- segment it- so,-isticated st(le (out-/ulness and

ent-usiasm5. &-at as t-e rig-t direction o/ +oca7+ola -en it as

success/ul and ell received )( t-e (out- a lot. Besides +oca7+ola

also /ocused on geogra,-ic c-aracteristics in Vietnam and /ocused

on residential areas in detail )ig cities5.

b. Packaging:7 +an: 330m7 Glass )ottle7 PE& ,ol(et-(lene tere,-t-alate5 Plastic )ottle: 1. and

3A0m7 Package: 24 cansS)o" or 9 )ottlesS)lock etc.

Page | 2A


31/59

+oca7+ola Vietnam constantl( im,roves t-e

,ackaging and design )ecome more )eauti/ul and

more convenient. $it- t-e original design t-is

com,an( recentl( ,rovided t-e ne PE& ,lastic

)ottle 3A0m to serve t-e s-o,,ing needs o/

customers. !n ,articular t-e )od( o/ ne PE&

,lastic )ottle is designed and o,timied to 6t -ands

and -el, to increase t-e ease o/ using ,roduct. or

instance +om,an( give t-e design o/ >anta un?

t-is t(,e o/ )ottle it- /anc( s-a,e create t-e

uniHue look /or t-is ,roducts.

+oca7+ola Vietnam ala(s c-ange t-e image in ,ackage de,end on

seasons or events suc- as in &et


32/59

;ote: about the materials of all $acks:

)


33/59

t-e diCerence in ,rice is not -ig-. !t is ,ossi)le to look t-roug-

t-e ,rice list is u,dated recentl( )eteen +oca7+ola and Pe,si:

Name Ty(es "rice

Coca3Cola Classic +an 330m J.900

Glass )ottle .000

PE& ,lastic )ottle

3A0m

.J00

PE& ,lastic )ottle 1. 19.00

-iet Coke +an 8.000

Name Ty(es "rice

"e(si Classic +an 330m J.00

Glass )ottle .000

Plastic )ottle 400m 4.A00

Plastic )ottle 1. 1.200

"e(si Lig+t +an 330m .200

d. Promotion:

&o get t-e great success in Vietnam market +oca7+ola

+om,an(s marketers -ave used communication tools eCectivel(.

&-e( understand t-e ,s(c-olog( o/ consumers and realie t-at

,romotion activit( is one o/ t-e )est tools to ,romote t-e image

o/ an( ,roducts. +oca7+ola +om,an( -as launc-ed man(

Page | 32


34/59

,romotions to attract )u(ers gain t-e market s-are and even get

t-e concurring /rom customers in social res,onsi)ilit( ,art. or

e"am,le in 2013 and earl( 2014 +om,an( -as created some

,romotion activities:

o >li, +oca7+ola ind t-e uck(? /rom ;une 10t- to

#e,tem)er Jt-in 2013. &-e target o/ t-is ,romotion is all

individuals living in t-e territor( o/ Vietnam )u(ing

,romotional ,roducts +oca7+ola anta #,rite and

#amurai )ot- ,lastic )ottles and glass )ottles5. Person can

=i, t-e )ottle ca,s and 6nd t-e luck( code under ca,s to

-ave a c-ance getting t-e ,rie o/ Vina,-one #amsung

Gala"( #4 #im kitetc.5o >


35/59

o !n &et 'n L &ai L oc? ilm )roadcast advertising o/ >&et Gan Oet? in 10 &V

stations at J:4 ,.m on ecem)er 3rd 2013 Program >+reate &et ogo? on ace)ook ',,s

e. Place:'ll ,roducts o/ +oca7+ola are ,roduced in t-ree manu/actories L

s


36/59

management structure it- t-e main manager role o/ ++BV in


37/59

%uita,le (rice *it+ almost social class& +oca +ola is ver(

,o,ular )everage in t-e orld and t-eir ,rice is also c-ea,. !n

Vietnam +oca +ola is suita)le it- ever( class o/ social included

,u,ils students etc.

Most extensive ,everage distri,ution c+annel&+oca +ola

serves more t-an 200 countries and more t-an 1.J )illion servings a

Page | 39


38/59

da(. !n Vietnam to main distri)ution c-annels o/ +oca +ola are

ver( eCective:

Customer loyalty&&-e 6rm en*o(s -aving one o/ t-e most lo(al

consumer grou,s.

Page | 3J


39/59

Bargaining (o*er over su((liers&&-e +oca +ola +om,an( is t-e

largest )everage ,roducer in t-e orld and e"erts signi6cant ,oer

over its su,,liers to receive t-e loest ,rice availa)le /rom t-em.

Cor(orate %ocial #es(onsi,ility 5C%#6.+oca +ola is increasingl(

/ocusing on +#@ ,rograms suc- as rec(clingS,ackaging energ(

conservationSclimate c-ange active -ealt-( living ater

steards-i, and man( ot-ers -ic- )oosts com,an(s social image

and result in com,etitive advantage over com,etitors.

b. ?$$ortunities:Bottled *ater consum(tion gro*t+&+onsum,tion o/ )ottled

ater is e",ected to gro )ot- in t-e rest o/ t-e orld.Increasing demand $or +ealt+y $ood and ,everages&ue to

man( ,rograms to 6g-t o)esit( demand /or -ealt-( /ood and

)everages -as increased drasticall(. &-e +oca +ola +om,an( -as an

o,,ortunit( to /urt-er e",and its ,roduct range it- drinks t-at

-ave lo amount o/ sugar and calories.ig+ tec+nologies&


40/59

drinks ill gro in emerging economies )ut it ill ,rove eak as t-e

orld is 6g-ting o)esit( and is moving toards consuming -ealt-ier

/ood and drinks.

7ndiversi'ed (roduct (ort$olio&Wnlike most com,an(s

com,etitors +oca +ola is still /ocusing onl( on selling )everage

-ic- ,uts t-e 6rm at disadvantage. &-e overall consum,tion o/ so/t

drinks is stagnating and +oca +ola +om,an( ill 6nd it -ard to

,enetrate to ot-er markets selling /ood or snacks5 -en it ill -ave

to sustain current level o/ grot-.ig+ de,t level due to ac8uisitions&earl( N8 )illion o/ de)t

acHuired /rom ++Es acHuisition signi6cantl( increased +oca +olaDs

de)t level interest rates and )orroing costs.Negative (u,licity&&-e 6rm is o/ten criticied /or -ig- ater

consum,tion in ater scarce regions and using -arm/ul ingredients

to ,roduce its drinks.

Brand $ailures or many ,rands *it+ insigni'cant amount o$

revenues&+oca +ola currentl( sells more t-an 00 )rands )ut onl(

/e o/ t-e )rands result in more t-an N1 )illion sales. Plus t-e 6rms

success o/ introducing ne drinks is eak. Man( o/ its introduction

result in /ailures /or e"am,le +2 drink.d. 'hreats:C+anges in consumer tastes&+onsumers around t-e orld

)ecome more -ealt- conscious and reduce t-eir consum,tion o/

car)onated drinks drinks t-at -ave large amounts o/ sugar calories

and /at. &-is is t-e most serious t-reat as +oca +ola is mainl(

serving car)onated drinks.

Page | 3A


41/59

4ater scarcity&$ater is )ecoming scarcer around t-e orld and

increases )ot- in cost and criticism /or +oca +ola over t-e large

amounts o/ ater used in ,roduction.

Legal re8uirements to disclose negative in$ormation on

(roduct la,elsome +oca +olas car)onated drinks -ave adverse

-ealt- conseHuences. or t-is reason man( governments consider

to ,ass legislation t-at reHuires disclosing suc- in/ormation on

,roduct la)els. Products containing suc- in/ormation ma( )e

,erceived negativel( and lose its customers.-ecreasing gross (ro't and net (ro't margins&+oca +olas

gross ,ro6t and net ,ro6t margin as decreasing over t-e ,ast /e

(ears and ma( continue to decrease due to -ig-er ater and ot-er

ra material costs.Com(etition $rom "e(siCo&Pe,si+o is 6ercel( com,eting it-

+oca +ola over market s-are in B@!+ countries. 'lt-oug- in Vietnam

+oca +ola still leads t-e )everages market Pe,si+o is a strong

com,etitor.%aturated car,onated drinks market&&-e )usiness signi6cantl(

relies on t-e car)onated drinks sales -ic- is a t-reat /or t-e +oca

+ola as t-e market o/ car)onated drinks is not groing or even

declining in t-e orld.

4. #$%& 'nal(sis:

%O %T#ATE)IE%

Wse #trengt-s to take

advantages o/

%,,ortunities

#1. &-e )est glo)al )rand in t-e orld in terms

o/ value NJJ83A )illion5

#2. $orlds largest market s-are in )everage

#3. #trong marketing and advertising

Page | 40


42/59

#4. #uita)le ,rice it- almost social class

#. Most e"tensive )everage distri)ution

c-annel

#9. +ustomer lo(alt(

#J. Bargaining ,oer over su,,liers

%1. Bottled ater

consum,tion grot-

%2:


43/59

%1. Bottled ater

consum,tion grot-

%2:


44/59

&1. +-anges in

consumer tastes

&2. $ater scarcit( and

asting environment

&3. egal reHuirements

to disclose negative

in/ormation on ,roduct

la)els

&4. +om,etition /rom

Pe,si+o

&. egative ,u)licit(.

&9. #aturated

car)onated drinks

market

#3Y#9 vs &1Y&4:

Provide man( t-ank (ou ,rograms or )uild u,

t-e customer service ell. unrelated

diversi6cation5

+reate a /an ,age in social netork /orard

integration5

#4Y#J vs &Y&9:

&ake advantages o/ )argaining su,,liers to

en-ance ,roducts /or /olio. related

diversi6cation5

Bu( it- t-e suita)le ,rice to com,ete it-

Pe,si +o market develo,ment5

rom t-ese a)ove #$%& e are going to conclude /olloing issues

regarding to +oca +ola +om,an(.. !ey Issues&

1. Wndiversi6ed ,roducts ,ro)lem: +oca +ola is signi6cantl( /ocuses on

car)onated drink. Mean-ile as e mentioned a)ove consumers

-ave )ecome more -ealt- conscious and reduce t-eir consum,tion o/

car)onated drinks drinks t-at -ave large amounts o/ sugar calories

and /at. !/ +oca +ola still not develo, t-eir ,roducts t-eir sale could )e

decrease /ast.2. Brand /ailures or man( )rands it- insigni6cant amount o/ revenues:

+oca +ola currentl( sells more t-an 00 )rands )ut onl( /e o/ t-e

)rands result in more t-an N1 )illion sales. Plus t-e 6rms success o/

Page | 43


45/59

introducing ne drink is eak. Man( o/ its introduction result in

/ailures.3. +om,etitor Pe,si: Pe,si is a ver( strong com,etitor o/ +oca +ola. !/

+oca +ola does not kee, t-e develo,ment it is com,letel( ,ossi)le

t-at Pe,si can )e e"ceeding +oca +ola.I. Marketing "lan&

'. %)*ectives:&o make solutions /or a)ove issues regarding +oca +ola e are

going to set /olloing o)*ectives:1. evelo,ing ne ,otential ,roducts.2. Bringing images o/ ne ,roducts ,o,ular to customers in an

eCective a( t-roug- marketing strateg(.3. !ncreasing market s-are.

B. Marketing #trateg(:+oca7+ola is one o/ t-e leading manu/acturer in )everage industr(

in t-e orld. +oca7+ola oCers variet( o/ )rands suc- as +oca7+ola

+lassic iet +oke anta #,rite asani ater etc. &-e +oca7+ola

)rand -as )een ado,ted t-e strateg( o/ glo)al )rand. &-e( are

considering t-e orld market as single market ,lace and use

consistenc( marketing strateg( /or man( (ears.


46/59

ot-er stages. Management -as to ,a( s,ecial attention to ,roducts

during t-is stage o/ t-e ,roduct li/e7c(cle. uring t-e maturit( stage

,roducts usuall( go t-roug- a slodon in sales grot-. 'ccording

to statistics /rom vietstock.vn in t-e /ourt- Huarter 20135 sales o/

+oca7+ola decreased )( 4K com,ared it- t-e same ,eriod t-e

,revious (ear /rom N 11.4J )illion t-e same ,eriod a (ear earlier to

11.04 )illion W.#. dollars. Mean-ile in t-e /ourt- Huarter 20135

,ro6t /ell 8.K /rom N 1.8J )illion t-e same ,eriod a (ear earlier to

1.J1 )illion W.#. dollars. uring t-e t-ird Huarter +oca7+olaDs ,ro6t

/ell 24K over t-e same ,eriod t-e ,revious (ear revenue as onl(

.99 )illion W.#. dollars.

#,ecialiing in Vietnam +oca7+ola is concerning as a grot- stage.

'lt-oug- declaring loss in man( (ears )ut t-e revenue o/ +oke is not

sto, increase in man( (ears. 'ccording to statistic o/


47/59

#o t-e strategic market o)*ective o/ +oca7 +ola in Vietnam s-ould

increase com,etitive ,osition and invest more.

Business %trategy&

$-en investigating Miles and #noDs /our strategies de/enders

,ros,ectors anal(ers and reactors e de6ne t-at +oca7+ola act as

an anal(er. $e t-ink t-is strateg( suita)le /or +oca7+ola market in

Vietnam. 'nal(er strateg( is )eteen Pros,ector and e/ender

strateg(. !t attem,ts to maintain a strong ,osition in its core

,roduct7market and continue researc- and develo, to e",and ne

,roduct t-at regarding to e"ist ,roduct line.

Pe,si7 t-e main com,etitor o/ +oca7 +ola -as t-e num)er o/

)everage ,roduct eHuivalent to +oca in Vietnam. +oca7+ola core

,roduct is +oca7+ola and it -as man( ,roducts suc- as anta #,rite

Page | 49


48/59

#amurai R t-at develo,ed /rom car)onated ,roducts. &-e( develo,

t-eir added ,roduct in eac- )rand suc- as #tra)err( anta orest

ruit anta o/ anta line )everage.

rom o)*ectives mentioned a)ove e are going to oCer some

solutions /or im,roving t-e marketing strateg( ,er/ormance o/ +oca

+ola +om,an(:

1. Product &trategy:@esearc- and develo,ment ne )everage ,ackaging and ,roduct

,ort/olio o/ +oca7+ola is one o/ t-e solution /or +oca7 +ola to e",and

com,etition. !t can -el, gain )rand value and im,rove t-e

customers satis/action.@Z ,roducts -ic- are good /or -ealt- o/ customers made /rom

-ealt-( materials can c-ange t-e negative image o/ +oca it-

dicult ,eo,le and e",and market s-are. !m,rove ,ackaging )(

)eauti/ul and creative design use/ul to create ne /eeling /or

customer: uniHue /unn( st(le and /res-.Besides good design t-e )everage container is uniHue in t-e a(

t-e consumer is encouraged to re7use it. &-e material to ,roduce

)everage is /riendl( it- environment eco7 /riendl(5. !ncrease )rand

value /or +oca7 +ola. &-is ,roduct can satis/(ing customers.2. Price &trategy:Price strateg( o/ coca in order to ,rovide a,,ro,riate ,rice to

consumers and make t-em com/orta)le a)out ,rice and ,roduct

Hualit( s-ort t-e distance )eteen introduce ,roducts and

customers.+oca7+ola -ave a -ig- market s-are com,etitor ,ressure -as /orced

customer sensitivit( to ,rice to )e /airl( -ig- sales volume is o/

Page | 4J


49/59

course -ig- and ,ro6t margin is /airl( lo as t-e +oca7+ola ,roducts

are /ast moving consumer goods. &-e ,rice strateg( )ased on t-e

customers ,s(c-olog(. or e"am,le t-e -ouseives also ,re/er to

)u( t-e c-ea,er ,roducts. &-is ,oints to ,enetration strateg(.

Penetration ,ricing means t-e setting o/ loer rat-er t-an -ig-

,rices to ac-ieve ,otentiall( dominant market s-are.&-is can onl( )e done -ere demand /or t-e ,roduct is )elieved to

)e -ig-l( =e"i)le )asicall( demand is ,rice sensitive and eit-er ne

consumers ill )e attracted or e"isting consumers ill )u( more o/

t-e ,roduct )ecause o/ a lo ,rice.' good ,enetration strateg( ma( lead to large amount o/ sales and

large market s-ares. &-e main ,roduct ma( )e ,riced lo to attract

sales customers are t-en sold accessories. &-is strateg( ill ork

nicel( in ,romoting re7use o/ +oca7+ola ,ackaging via a )everage

-older.Price Penetration is most a,,ro,riate in industries -ere

standardiation is im,ortant. &-e ,roduct t-at ac-ieves -ig- market

,enetration o/ten )ecomes t-e industr( standard in regards to t-e

ne +oca7+ola )everage vessel it is tr(ing to create a

standardiation o/ -o consumers use t-e )everage container.

+urrentl( t-e ,rice o/ +oke ,roducts in V market is -ig-er t-an t-e

res,ective ,roducts o/ t-e same t(,e )ut t-e diCerence in ,rice is

not -ig-./. Adertising:

'dvertising is ver( im,ortant it- an( )rands and ,roducts

es,eciall( it- ne ,roducts. &-ere are 'dvertising orms t-at +oca

+ola +om,an( can a,,l(:

Page | 48


50/59

Advertising Form Strengths !eaknesses Tools or tactics

Billboards H -trengths0 -een by a large

audience, hard to avoid, large

presence, people highly

receptive.

H ;ea*nesses0 Because its an

old form of advertising and so

!idely used consumers learn to

ignore it, doesn3t target

audience.

Co*e have incorporated

interesting billboards before,

they freuently advertise on the

neon displays in both

iccadilly Circus in ondon

and Times -uare e! or*.

They have also used +

billboards in the nited -tates.

nnecessary for product

launch as consumers !ill

probably be more inclined and

used to this form of advertising

by $'&(.

T7 Adverts H -trengths0 -een by a large

audience, can be targeted on

specific programmesJchannels,

good communication device.

H ;ea*nesses0 !atershed on

2un* food soon in place, -*y

Documents

Coca Colas Marketing Plan Fixing