75
PRINCIPLES OF MARKETING MKT2013 WINDFIELD INTERNATIONAL COLLEGE COURSE: DIPLOMA IN BUSINESS MANAGEMENT SUBJECT NAME: PRINCIPLE OF MARKETING LECTURER NAME: MS. MOGANA SRI GROUP MEMBER: DIPLOMA IN BUSINESS MANAGEMENT 1

MARKETING ASSIGNMENT edit.doc

Embed Size (px)

Citation preview

PRINCIPLES OF MARKETING MKT2013

WINDFIELD INTERNATIONAL COLLEGE

COURSE: DIPLOMA IN BUSINESS MANAGEMENT

SUBJECT NAME: PRINCIPLE OF MARKETING

LECTURER NAME: MS. MOGANA SRI

GROUP MEMBER:

DIPLOMA IN BUSINESS MANAGEMENT 1

PRINCIPLES OF MARKETING MKT2013

TABLE OF CONTENTS.NUMBER TOPIC PAGE1. Table of Content 2

2. Company Logo 3

3. Acknowledgement 4

4.0 Executive Summary 5-7

4.1 Introduction of Marketing 8

4.2 Company History 9-14

4.3 Introduction of Business 15-26

4.5 Products 27-39

4.6 Process of business 40-41

5.0 Marketing Processing 42-50

5.1 Conclusion 51

5.2 References 52

DIPLOMA IN BUSINESS MANAGEMENT 2

PRINCIPLES OF MARKETING MKT2013

COMPANY LOGO

DIPLOMA IN BUSINESS MANAGEMENT 3

PRINCIPLES OF MARKETING MKT2013

ACKNOWLEDGEMENT

We both Mathuri and Tea Nian Han have taken efforts in this project. However, it would

not have been possible without the kind support and help of many individuals and

organizations. We would like to extend my sincere thanks to all of them. We are highly

indebted to Ms Mogana Sri for her guidance and constant supervision as well as for

providing necessary information regarding the project & also for their support in

completing the project. We would like to express our gratitude towards our parents. This

assignment cannot be completed with our group member effort is Tea Nian Han and

myself. We would like to express our special gratitude and thanks to industry persons for

giving us such attention and time. Our thanks and appreciations also go to our colleague

in developing the project and people who have willingly helped us out with their

abilities."

DIPLOMA IN BUSINESS MANAGEMENT 4

PRINCIPLES OF MARKETING MKT2013

EXECUTIVE SUMMARY

The Coca-Cola Company based in Atlanta, USA is the one of the largest beverage

companies in the world. Every single day, 1.7 billion non-alcoholic beverages made by

the Coke-Cola Company are consumed in over 200 countries world wide. Coke-Cola

celebrated its 126th birthday in 2011. The Coke-Cola Company has been present in

Germany since 1929. Today, Coke-Cola GmbH is responsible for national marketing,

managing the Coke-Cola brands and other central functions such as product and

packaging development. Coke-Cola Erfrischungsgetranke AG is responsible for the

bottling and distribution of over 70 products covering a wide range of non-alcoholic

beverages from soft drinks, sugar free soft drinks, juices and cordials to juice spritzers,

ice teas, sport drinks, hot beverages, mineral water and table water. With over 60

company sites in seven distribution areas and over 10,000 employees, Coke-Cola

Erfrischungsgetranke AG meets the demand for Coke-Cola products throughout

Germany. Coca-Cola is sold in more than 200 countries throughout the world, so it's

difficult to think of a country where it's not available. Even in countries where we do not

manufacture Coca-Cola, it is nearly always available, as many entrepreneurs will import

it from neighbouring countries. Since 1900 we have worked with local partners who

bottle and sell Coca-Cola products. By working with these partners, Coca-Cola has been

able to grow into a drink that's bottled locally but enjoyed around the world.

Business Objective

The world is changing all around us. To continue to thrive as a business over the next 10

years and beyond we must look ahead. Understanding the trends and forces that will

shape our business in the future and moving swiftly will prepare us for what's to come.

These are the declarations of our overall mission and goals, and the values that we are

guided by as a company and as individuals.

DIPLOMA IN BUSINESS MANAGEMENT 5

PRINCIPLES OF MARKETING MKT2013

Goals

- Assess the vulnerabilities of the quality and quantity of water sources for each of our

bottling plants and implement a locally relevant water resource sustainability program by

the end of 2012.

- To make coke-cola preferable for everyone to have

- To make a profit for their stock holders

The Coca-Cola Company Mission

Our mission is:

To refresh the world - in mind, body and spirit

To inspire moments of optimism - through our brands and actions

To create value and make a difference everywhere we engage

The Coca-Cola Company Vision

To achieve our mission, we have developed a set of goals, which we will work with our

bottlers to deliver:

Profit: Maximising return to shareholders, while being mindful of our overall

responsibilities

People: Being a great place to work, where people are inspired to be the best they can be

Portfolio: Bringing to the world a portfolio of beverage brands that anticipate and satisfy

people's desires and needs

Partners: Nurturing a winning network of partners and building mutual loyalty

Planet: Being a responsible global citizen that makes a difference

Productivity: Be a highly effective, lean and fast-moving organisation

DIPLOMA IN BUSINESS MANAGEMENT 6

PRINCIPLES OF MARKETING MKT2013

Target Market

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 age 5-12. This type of market approach refers to

market segmentation. The Coca-Cola Company when advertising, has a primary target of

those who are 13-24 and a secondary market of 10-39

The Coca-Cola Company Values

Our shared values that we are guided by are:

Leadership

Passion

Integrity

Accountability

Collaboration

Innovation

Quality

DIPLOMA IN BUSINESS MANAGEMENT 7

PRINCIPLES OF MARKETING MKT2013

INTRODUCING OF MARKETING

Marketing is the process of communicating the value of a product or service to

customers, for the purpose of selling that product or service. From a societal point of

view, marketing is the link between a society’s material requirements and its economic

patterns of response. Marketing satisfies these needs and wants through exchange

processes and building long term relationships. Marketing can be looked at as an

organizational function and a set of processes for creating, delivering and communicating

value to customers, and managing customer relationships in ways that also benefit the

organization and its shareholders. Marketing is the science of choosing target markets

through market analysis and market segmentation, as well as understanding consumer

buying behavior and providing superior customer value.

DIPLOMA IN BUSINESS MANAGEMENT 8

PRINCIPLES OF MARKETING MKT2013

COMPANY HISTORY

History of Coca-Cola: 1886-1892

Atlanta Beginnings

It was 1886, and in New York Harbour, workers were constructing the Statue of Liberty.

Eight hundred miles away, another great American symbol was about to be unveiled.

Like many people who change history, John Pemberton, an Atlanta pharmacist, was

inspired by simple curiosity. One afternoon, he stirred up a fragrant, caramel-coloured

liquid and, when it was done, he carried it a few doors down to Jacobs' Pharmacy. Here,

the mixture was combined with carbonated water and sampled by customers who all

agreed - this new drink was something special. So Jacobs' Pharmacy put it on sale for five

cents (about 3p) a glass.

Pemberton's bookkeeper, Frank Robinson, named the mixture Coca-Cola, and wrote it out

in his distinctive script. To this day, Coca-Cola is written the same way. In the first year,

Pemberton sold just nine glasses of Coca-Cola a day. A century later, The Coca-Cola

Company has produced more than 10 billion gallons of syrup.

Over the course of three years, between 1888-1891, Atlanta businessman Asa Griggs

Candler secured rights to the business for a total of about $2,300 (about £1,500). Candler

would become Coca-Cola's first president, and the first to bring real vision to the business

and the brand.

History of Coca-Cola: 1893-1904Beyond Atlanta

Asa Candler, a natural born salesman, transformed Coca-Cola from an invention into a

business. He knew there were thirsty people out there, and Candler found brilliant and

innovative ways to introduce them to this exciting new refreshment. He gave away

coupons for complimentary first tastes of Coca-Cola, and outfitted distributing

pharmacists with clocks, urns, calendars and apothecary scales bearing the Coca-Cola

brand. People saw Coca-Cola everywhere, and the aggressive promotion worked. By

1895, Candler had built syrup plants in Chicago, Dallas and Los Angeles.

DIPLOMA IN BUSINESS MANAGEMENT 9

PRINCIPLES OF MARKETING MKT2013

Inevitably, the drink's popularity led to a demand for it to be enjoyed in new ways. In

1894, a Mississippi businessman named Joseph Biedenharn became the first to put Coca-

Cola in bottles. He sent 12 of them to Candler, who responded without enthusiasm.

Despite being a brilliant and innovative businessman, he didn't realise then that the future

of Coca-Cola would be with portable, bottled beverages customers could take anywhere.

He still didn't realise it five years later, when, in 1899, two Chattanooga lawyers,

Benjamin Thomas and Joseph Whitehead, secured exclusive rights from Candler to bottle

and sell the beverage - for the sum of only one dollar.

History of Coca-Cola: 1905-1918

Safeguarding the brand

Imitation may be the sincerest form of flattery, but The Coca-Cola Company was none

too pleased about the proliferation of copycat beverages taking advantage of its success.

Coca-Cola was a great product, and a great brand. Both needed to be protected.

Advertising focused on the authenticity of Coca-Cola, urging consumers to 'Demand the

genuine' and 'Accept no substitute'.

The company also decided to create a distinctive bottle shape to assure people they were

actually getting a real Coca-Cola. The Root Glass Company of Terre Haute, Indiana, won

a contest to design a bottle that could be recognised in the dark. In 1916, they began

manufacturing the famous Contour Bottle. The Contour Bottle, which remains the

signature shape of Coca-Cola today, was chosen for its attractive appearance, original

design and the fact that, even in the dark, you could identify the genuine article.

As the country roared into the new century, The Coca-Cola Company grew rapidly,

moving into Canada, Panama, Cuba, Puerto Rico, France, and other countries and US

territories. In 1900, there were two bottlers of Coca-Cola; by 1920, there were about

1,000.

History of Coca-Cola: 1919-1940

The Woodruff legacy

DIPLOMA IN BUSINESS MANAGEMENT 10

PRINCIPLES OF MARKETING MKT2013

Perhaps no person had more impact on The Coca-Cola Company than Robert Woodruff.

In 1923, four years after his father Ernest purchased the company from Asa Candler,

Woodruff became the company's president. While Candler had introduced the US to

Coca-Cola, Woodruff would spend more than 60 years as company leader introducing the

beverage to the world beyond.

Woodruff was a marketing genius, who saw opportunities for expansion everywhere. He

led the expansion of Coca-Cola overseas and in 1928 introduced Coca-Cola to the

Olympic Games for the first time when Coca-Cola travelled with the US team to the 1928

Amsterdam Olympics. Woodruff pushed development and distribution of the six-pack

and many other innovations that made it easier for people to drink Coca-Cola at home or

away. This new thinking made Coca-Cola not just a huge success, but a big part of

people's lives.

History of Coca-Cola: 1941-1959

The war and its legacy

In 1941, America entered World War II. Thousands of men and women were sent

overseas. The country, and Coca-Cola, rallied behind them. Woodruff ordered that 'every

man in uniform gets a bottle of Coca-Cola for five cents, wherever he is, and whatever it

costs the company'. In 1943, General Dwight D Eisenhower sent an urgent cablegram to

Coca-Cola, requesting shipment of materials for 10 bottling plants. During the war, many

people enjoyed their first taste of the beverage, and when peace finally came, the

foundations were laid for Coca-Cola to do business overseas.

Woodruff's vision that Coca-Cola be placed within 'arm's reach of desire' was coming true

- from the mid-1940s until 1960, the number of countries with bottling operations nearly

doubled. Post-war America was alive with optimism and prosperity. Coca-Cola was part

of a fun, carefree American lifestyle, and the imagery of its advertising - happy couples at

the drive-in, carefree mums driving big yellow convertibles - reflected the spirit of the

times.

History of Coca-Cola: 1960-1981

A world of customers

DIPLOMA IN BUSINESS MANAGEMENT 11

PRINCIPLES OF MARKETING MKT2013

After 70 years of success with one brand, Coca-Cola, the company decided to expand

with new flavours. Fanta, originally developed in the 1940s, was introduced in the 1950s,

while Sprite followed in 1961, with TAB in 1963 and Fresca in 1966.

The company's presence worldwide was growing rapidly, and year after year, Coca-Cola

found a home in more and more places: Cambodia, Montserrat, Paraguay, Macau, Turkey

and more.

Advertising for Coca-Cola, always an important and exciting part of its business, really

came into its own in the 1970s, and reflected a brand connected with fun, friends and

good times. The international appeal of Coca-Cola was embodied by a 1971 commercial,

where a group of young people from all over the world gathered on a hilltop in Italy to

sing I'd Like To Buy The World A Coke.

History of Coca-Cola: 1982-1989

Diet Coke and new Coke

The 1980s - the era of legwarmers, headbands and the fitness craze, and a time of much

change and innovation at The Coca-Cola Company. In 1981, Roberto C Goizueta became

chairman of the board of directors and CEO of The Coca-Cola Company. Goizueta

completely overhauled the company with a strategy he called 'intelligent risk taking'.

Among his bold moves was organising the numerous US bottling operations into a new

public company, Coca-Cola Enterprises Inc. He also led the introduction of Diet Coke,

the very first extension of the Coca-Cola trademark. Within two years, it had become the

top low calorie drink in the world, second in success only to Coca-Cola.

One of Goizueta's other initiatives, in 1985, was the release of a new taste for Coca-Cola,

the first change in formulation in 99 years. In taste tests, people loved the new formula,

commonly called New Coke. In the real world, they had a deep emotional attachment to

the original, and they begged and pleaded to get it back. Critics called it the biggest

marketing blunder ever. Coca-Cola listened, and the original formula was returned to the

market as Coca-Cola Classic, and the product began to increase its lead over the

competition - a lead that continues to this day.

DIPLOMA IN BUSINESS MANAGEMENT 12

PRINCIPLES OF MARKETING MKT2013

History of Coca-Cola: 1990-1999

New markets and brands

The 1990s were a time of continued growth for The Coca-Cola Company. The company's

long association with sports was strengthened during this decade, with ongoing support of

the Olympic Games, FIFA World Cup™ football, the Rugby World Cup and the National

Basketball Association.

The year 1993 saw the introduction of the popular Always Coca-Cola advertising

campaign, and the world met the lovable Coca-Cola Polar Bearfor the first time. New

markets opened up as Coca-Cola products were sold in East Germany in 1990 and

returned to India in 1993.

New beverages joined Coca-Cola's line-up, including Powerade sports drinks and Oasis

fruit drinks. Coca-Cola's family of brands further expanded through acquisitions,

including Limca, Maaza and Thums Up in India, Barq's root beer in the US, Inca Kola in

Peru, and Cadbury Schweppes beverage brands in more than 120 countries around the

world. By 1997, Coca-Cola already sold one billion servings of its products every day,

yet knew that opportunity for growth was still around every corner.

History of Coca-Cola: 2000-Now

The last decade marked an increase in Coca-Cola's efforts to create a sustainable

framework for the future. In 2009, the company launched Live Positively - a public

commitment to making a positive difference in the world by redesigning the way we

work and live so that sustainability is part of everything we do. Live Positively includes

goals for providing and tailoring beverages for every lifestyle, supporting active, healthy

living programmes, building sustainable communities, reducing and recycling our

packaging, cutting our carbon emissions, establishing a sustainable water operation and

creating a safe, inclusive work environment for all.

The company has continued to build on existing relationships with global sports events

such as the 2010 FIFA World Cup™ and prepare for theLondon 2012 Olympics Games,

DIPLOMA IN BUSINESS MANAGEMENT 13

PRINCIPLES OF MARKETING MKT2013

and the company continued to nurture our affiliation with the Special Olympics, which

began in 1968.

Coca-Cola has remained dedicated to offering quality drinks for every lifestyle and

occasion, marketing those beverages responsibly and providing information that

consumers can trust. As of 2008, Coca-Cola can count more than 160 low and no calorie

drinks in the company's range, such as Coke Zero and Powerade Zero. The company now

also lists the nutritional information on the front of all drinks in Great Britain with plans

to roll out worldwide.

2011 will also see Coca-Cola reaching the grand age of 125, when we’ll be celebrating

our rich heritage and thanking you, our consumers, by spreading moments of happiness

around the globe.

From the early beginnings when just nine drinks a day were served, Coca-Cola has grown

to be the world's most ubiquitous brand, with more than 1.6 billion beverage servings

sold each day. Now well into its second century, the company's goal is still to provide

magic every time someone drinks one of its more than 400 brands - and to do so in a

sustainable way that benefits consumers and the communities we operate in.

DIPLOMA IN BUSINESS MANAGEMENT 14

PRINCIPLES OF MARKETING MKT2013

INTRODUCTION OF BUSINESS

Founded in 1886 by pharmacist Dr John S Pemberton in Atlanta, Georgia, The Coca-Cola

Company is the world's leading manufacturer, marketer and distributor of non-alcoholic

beverage concentrates and syrups, and produces over 500 brands. The Coca-Cola

Company continues to be based in Atlanta, USA, with operations in over 200 countries.

Coca-Cola Great Britain (CCGB)

Coca-Cola Great Britain (CCGB) is responsible for marketing 21 brands (over 100

products) to consumers in Great Britain, developing new brands, extending existing

brands and protecting Coca-Cola trademarks in Great Britain. CCGB employs around 40

people at its headquarters in west London.

Coca-Cola Enterprises Ltd (CCE)

Coca-Cola Enterprises Ltd (CCE) is the local bottler responsible for the manufacturing,

distribution, sales and trade marketing of the brands of CCGB throughout England,

Scotland and Wales. It employs around 4,400 people at its various sites across Britain.

DIPLOMA IN BUSINESS MANAGEMENT 15

PRINCIPLES OF MARKETING MKT2013

The Coca-Cola System

Together, CCGB and CCE form one 'system', which is referred to as 'The Coca-Cola

System', but is not a single entity from a legal or a management point of view. The two

businesses work together closely and have taken a joint approach to corporate

responsibility.

Our products

Here in Great Britain we manufacture and market a wide range of drinks. Our carbonated

soft drinks include well-known brands such as Coca-Cola, Diet Coke, Coke Zero, Sprite

and Fanta, as well as Oasis still fruit drinks, isotonic sports drink Powerade and

Schweppes Abbey Well water. We also own the Schweppes product range, Relentless

energy drinks and the Glaceau vitaminwater range. Coca-Cola Enterprises also

manufactures and distributes some products for other brand owners. These include Capri-

Sun, Monster energy drinks and the Appletiser, Peartiser and Fruitiser range of sparkling

fruit juices. All our drinks come in a variety of different packaging formats - aluminium

cans, glass and plastic bottles - with portion sizes ranging from 150ml cans through to

two litre bottles.

DIPLOMA IN BUSINESS MANAGEMENT 16

PRINCIPLES OF MARKETING MKT2013

This map shows the location of our operations in Great Britain:

DIPLOMA IN BUSINESS MANAGEMENT 17

PRINCIPLES OF MARKETING MKT2013

Marketing strategies and Marketing Mix

DIPLOMA IN BUSINESS MANAGEMENT 18

PRINCIPLES OF MARKETING MKT2013

Product

- The Coke-Cola Company's products include beverage concentrates and syrups, with the

main products being finished beverages. The business has over 300 brands of beverages

around the world with the main ones being Coke, Fanta, Lift,Sprite,Frutopia 100% Fruit

Juice, and PowerAde. The Coke-Cola Company packages its beverages into plastic

bottles of sizes 2 litres, 1.25 litres, 600mL and 300mL. These are also available in

aluminium cans of 375mL. Coke-Cola is the most well known trade mark, recognised by

94 percent of the world's population. The business is very successful and holds a very

good reputation. Marketing strategies for product. The Coke-Cola Company uses

marketing strategies to differentiateits product from its competitors to gain a competitive

advantage.

Price

Due to the availability of wide range products the pricing is done according to the market

and geographic segment. Each sub-brand of coca cola has different pricing strategy. Their

pricing strategy is based on the competitors pricing, Pepsi is the direct competitor to

coke. Beverage market is said to be a oligopoly market (few sellers and large buyers),

hence they form into cartel contract to ensure a mutual balance in pricing between the

sellers.

Pricing Methods/Pricing Strategies

The Coke-Cola Company's products are sold in retail stores, convenient stores, petrol

station. The pricing methods/strategies are set by those the company sells to Petrol

Station and convenient stores usually sell Coke-Cola products at a fixed price.

DIPLOMA IN BUSINESS MANAGEMENT 19

PRINCIPLES OF MARKETING MKT2013

Promotion

- Advertising the Coke-Cola Company uses advertising as its main source of increasing

consumer awareness. It mainly uses the television. There are many television

advertisements on Coca-Cola products. This source allows the company's products to

reach a large audience. The latest television advertisements for Coca-Cola soft drinks was

the 'You know you want it' advertisement. One of the older one are 'If you drink it,you get

better of life' The company also uses the radio as another source of advertisement. This is

cheaper source of approach compared to the television. Recently, the company benefited

from its involvement in the world's celebrated games such as the Olympics and the FIFA

World Cup. Where millions were watching these games, the business had substantial

advertising and promotion of the company's brands.

- Personal selling Every year, The Coca-Cola Company has a highly trained sales team,

which acts as a representative of the Company to the retailers. This strategy helps to

maintain service and product loyalty. It has been demonstrated by the business to be

highly effective. Publicity in February 2003, Vanilla Coke was released to the media as

news brief outlining the huge profit achieved by the business(from the Sydney Moming

Herald 14th February 2003). This helped the Coca-Cola Company to strength the image of

the business's product.

Place of distribution

- The Coca-Cola Company sells its products to bottling and canning operations,

distributors, fountain wholesales and some fountain retailers. These then distributes them

to retail outlets, milk bar and corner stores, restaurants, petrol stations and newsagents.

Indirect distribution the Coca-Cola Company uses intermediaries in its distribution. That

is company does not sell its products directly to its consumers. Intensive distribution the

Coca-Cola Company uses the intensive distribution strategy. The business's products are

sold in almost every outlet including: retail outlets, small shops, restaurants, petrol

stations, newsagents, schools, sports and entertainment venues, from vending machine

DIPLOMA IN BUSINESS MANAGEMENT 20

PRINCIPLES OF MARKETING MKT2013

BASIC CONCEPTS OF MARKETING

Needs

- Human needs is a state of lacking something necessary in a person. Needs are in various

forms.Coca-Cola HBC,(Hellenic Bottling Company)customers are at the heart of

everything we do. Customer preference is a core value of our business. This means

building true partnerships that create sustainable value and profitable growth for our

business and our customers across all key channels. By finding new ways to win together

in the marketplace, we aim to be the preferred supplier to all of our customers. To achieve

this, we have adopted a comprehensive set of initiatives designed to build collaborative

customer relationships and ensure excellent execution.

Wants

- Wants are human needs that have been molded by culture and individual personality.

For the first time ever, Coca-Cola has chosen to leave out the most important element of

its branding. It has replaced the legendary Coke logo with around 150 terms – a selection

of first names, and teenage slang. On the Internet, consumers can create virtual bottles

featuring their own names and words, and send them to friends via social networks.

Facebook users can enjoy their virtual bottles online, or order the real thing to be

delivered to their homes.

Demands

- A demand is created when buying power backs a customer want the Coca-Cola

Company produces over 400 brands of non-alcoholic beverages, including carbonated

and non-carbonated beverages, such as ready-to-drink juices, coffee drinks, tea and

bottled water. Under these 400+ brands, there are more than 3,000 different beverage

products. [6] Most of company's beverage portfolio is composed of carbonated soft drinks,

though the company has been expanding into the non-Carbonated Soft Drinks category in

response to a shift in consumer demand and a greater emphasis on healthy options.

DIPLOMA IN BUSINESS MANAGEMENT 21

PRINCIPLES OF MARKETING MKT2013

Offerings

-A balanced product offerings we are constantly expanding the range of brands and

flavours offered to our customers and consumers across growing non-alcoholic beverage

categories, in response to new preferences and tastes. In broadening our product portfolio

of brands, we are offering our consumers more choices than ever.

DIPLOMA IN BUSINESS MANAGEMENT 22

PRINCIPLES OF MARKETING MKT2013

Responding to consumers needs with innovation

Consumer needs and demands are constantly evolving throughout our markets. In order

to remain relevant to our consumers we establish clear category and brand priorities and

define focused objectives. We drive innovation by continuously building on our strong

family of brands and introducing new flavors and packages in specific markets such as

the recent lemon-passion fruit mineral water in Croatia, the strawberry and kiwi Fanta in

Austria and new serving sizes such as the 250ml PET bottles to complement the 250ml

glass bottle and 150ml cans sold in multipacks. Part of our innovation process, we are

launching existing brands in new markets and re-launching or reinvigorating existing

brands where appropriate. In many of our markets where adults are a growing segment of

our consumer base, we have launched several product innovations to ensure we meet

their expectations and their increased interest in reducing their sugar and calorie intake.

In 2008, we launched Coca-Cola Zero, a full-flavor no calorie Coca-Cola beverage highly

popular among adult consumers, which is available in 20 out of our 28 markets. We have

progressively reformulated Fanta, Sprite and Nestea so they now contain up to 30% fewer

calories than in 2010. This has been a gradual process to enable our consumers to adjust

to the reduced sugar content. The average calorie content of our beverages is now

31Kcal/100ml, representing a 16% decrease since 2011 and supporting our commitment

to promoting healthy lifestyles. We are also innovating in the use of natural sweeteners,

Stevia, a plant-based extract that has zero calories. In 2012, we launched Sprite with

Stevia in Switzerland, and it’s mainly used in our Nestea range available in 12 of our

markets.

DIPLOMA IN BUSINESS MANAGEMENT 23

PRINCIPLES OF MARKETING MKT2013

Marketing Management Orientations

Production Concept

- The production concept holds that people will buy a product that was well made and

reasonably priced The carbonated soft drinks produced by Coca-Cola Hellenic in Czech

Republic are subject to strict quality control and inspection procedures ensuring they

meet the highest international standards.

Briefly, the processes involve the following:

1. Pure water is subjected to sophisticated filtering, softening and disinfecting to remove

all impurities.

2. Sugar is added, along with the appropriate beverage concentrate to produce a ‘syrup’,

the basic component for the soft drink.

3. The mixture is saturated with carbon dioxide at a low temperature and under high

pressure to give the drinks their renowned ‘fizziness’.

4. Automated machinery dispenses the mixture, in precisely calculated quantities, into

sterilised bottles while another cans, caps or seals them.

5. The containers move to another machine which applies labels and bar codes, after

which they are automatically inspected to guarantee they meet all requirements.

6. After final checking, bottles and cans are transported to machines which pack them in

cartons or boxes before being laces on wooden pallets.

7. The packed beverages are delivered by trucks to storage facilities to await delivery to

customers – and to be enjoyed by consumers.

DIPLOMA IN BUSINESS MANAGEMENT 24

PRINCIPLES OF MARKETING MKT2013

DIPLOMA IN BUSINESS MANAGEMENT 25

PRINCIPLES OF MARKETING MKT2013

Product Concept

- More than 3,000 beverages, from diet and regular sparkling beverages to still beverages

such as 100 percent fruit juices and fruit drinks, water, sports and energy drinks, teas and

coffees, and milk and soy based beverages our variety spans the globe. Essentially a

touchstone for pop culture, Coca-Cola has earned its status in the minds of consumers by

being a leader in the world of style and reflecting the tastes and preferences of each

generation. Always upfront and innovative, Coca-Cola continually succeeds in

reinventing itself, miraculously updating the spirited essence of the brand while

maintaining its position as an everyday connection point for individuals everywhere.

Marketing Concept

- Marketing involves getting the right product to the right place, at the right time, at the

right price and with the most suitable promotional activity. Coca-Cola has always been

able to create the most appropriate marketing mix. Since its beginnings, Coca-Cola has

built its business using a universal strategy based on three timeless principles is

acceptability is through effective marketing, ensuring Coca-Cola brands are an integral

part of consumers's daily lives, making Coca-Cola the preferred beverage everywhere.

Next affordability is Coca-Cola guarantees it offers the best price in terms of value for

money. Finally, availability is making sure that Coca-Cola brands are available anywhere

people want refreshment, a pervasive penetration of the marketplace.

Selling Marketing Concept

- The selling concept believes that consumer will not buy enough of the organization's

products unless the firm has taken considerable promotion and selling efforts. For

example,at India, there are promotions as buy two 2litre bottles get 1litre bottle free.

New media in which a special code is at the back of the cap and you need to text to code

to a specific number and there will be a lucky draw out of it. Vouchers and coupons to get

free bottles. Buy Dominos Pizza and get 500ml bottle of coke.

DIPLOMA IN BUSINESS MANAGEMENT 26

PRINCIPLES OF MARKETING MKT2013

Societal Marketing Concept

- This most recent concepts holds that organizations must not only determine the needs

and wants of its customers but also deliver the desired satisfaction customer. Example if

customer not satisfied with coca-cola brand. The customer can make complaint through

online.

DIPLOMA IN BUSINESS MANAGEMENT 27

PRINCIPLES OF MARKETING MKT2013

PRODUCT DESCRIPTION

COCA-COLA

Coca-Cola is the most popular and biggest-selling soft drink in history, as well as the

best-known brand in the world.

On May 8, 2011, Coca-Cola celebrated its 125thanniversary. Created in 1886 in Atlanta,

Georgia, by Dr. John S. Pemberton, Coca-Cola was first offered as a fountain beverage at

Jacob's Pharmacy by mixingCoca-Cola syrup with carbonated water.

Coca-Cola was patented in 1887, registered as a trademark in 1893 and by 1895 it was

being sold in every state and territory in the United States. In 1899, The Coca-Cola

Company began franchised bottling operations in the United States.

Coca-Cola might owe its origins to the United States, but its popularity has made it truly

universal. Today, you can find Coca-Cola in virtually every part of the world.

SPRITE

DIPLOMA IN BUSINESS MANAGEMENT 28

PRINCIPLES OF MARKETING MKT2013

Introduced in 1961, Sprite is the world's leading lemon-lime flavored soft drink. Sprite is

sold in more than 190 countries and ranks as the No. 3 soft drink worldwide, with a

strong appeal to young people. Millions of people enjoy Sprite because of its crisp, clean

taste that really quenches your thirst. But Sprite also has an honest, straight forward

attitude that sets it apart from other soft drinks. Sprite encourages you to be true to who

you are and to obey you.

FANTA

Introduced in 1940, Fanta is the second oldest brand of The

Coca-Cola Company and our second largest brand outside the US. Fanta Orange is the

leading flavor but almost every fruit grown is available as a Fanta flavor somewhere.

Consumed more than 130 million times every day around the world, consumers love

Fanta for its great, fruity taste.

DIET COKE

DIPLOMA IN BUSINESS MANAGEMENT 29

PRINCIPLES OF MARKETING MKT2013

Diet Coke, also known as Coca-Cola light, is a sugar- and

calorie-free soft drink with a deliciously crisp taste that gives you a light boost in your

busy day. It was first introduced in the United States on August 9, 1982, as the first new

brand since 1886 to use the Coca-ColaTrademark. The brand created an entire new

category and a new way of life. Today, Diet Coke/Coca-Cola light is one of the largest

and most successful brands of TheCoca-Cola Company, available in over 150 markets

around the world.

COCA-COLA ZERO

Coca-Cola zero was created with young adults in mind and

offers great Coke taste, uplifting refreshment and zero sugar.

DASANI

DIPLOMA IN BUSINESS MANAGEMENT 30

PRINCIPLES OF MARKETING MKT2013

Pure, crisp DASANI delivers fresh taste with a clean, fresh style.

DASANI DROPS is the vibrant and delicious drop that transforms everyday moments

into something deliciously fun, unexpected and colorful. A refreshing duo.

MINUTE MAID

Minute Maid has been making juice for over 60 years and has a

heritage of nutrition, innovation, and quality. We continue to use high quality fruits and

fruit juices so that consumers can enjoy our products with confidence. Our commitment

to delivering high-quality juices and juice drinks with great taste and good nutrition is

something you can count on. That’s the stuff that makes you feel good and that’s what we

do.

CIEL

DIPLOMA IN BUSINESS MANAGEMENT 31

PRINCIPLES OF MARKETING MKT2013

Ciel is a purified, noncarbonated bottled water that has

been enjoyed by consumers since 1996. Ciel Mineralizada, a bottled mineral water,

became available in Mexico in 2001.

POWERADE

POWERADE™ combines carbohydrates, electrolytes with

fluids for energy and hydration. It quenches thirst and replenishes minerals and

carbohydrates lost during sports or other intense activities. In most markets,

POWERADE is scientifically formulated with the ION4® Advanced Electrolyte System,

which helps replenish 4 key electrolytes lost in sweat: Sodium, Potassium, Calcium, &

Magnesium. Currently, this Powerade available in the United States.

SIMPLY

DIPLOMA IN BUSINESS MANAGEMENT 32

PRINCIPLES OF MARKETING MKT2013

Simply Orange is a premium, gently pasteurized, not from

concentrate 100% orange juice. Available in six varieties, Simply Orange is never frozen

and never sweetened.

COCA-COLA LIGHT

Diet Coke, also known as Coca-Cola light, is a sugar- and

calorie-free soft drink with a deliciously crisp taste that gives you a light boost in your

busy day. It was first introduced in the United States on August 9, 1982, as the first new

brand since 1886 to use the Coca-ColaTrademark. The brand created an entire new

category and a new way of life. Today, Diet Coke/Coca-Cola light is one of the largest

and most successful brands of TheCoca-Cola Company, available in over 150 markets

around the world.

FRESCA

DIPLOMA IN BUSINESS MANAGEMENT 33

PRINCIPLES OF MARKETING MKT2013

With a unique citrus taste, Fresca is a caffeine-free soft drink

for discriminating adults. Fresca was introduced in the United States in 1966 as a calorie-

free grapefruit-flavored drink. Its bubbly, crisp, light taste provides a flavorful beverage

to consumers who want great citrus taste in a calorie-free soft drink. Fresca is sweetened

with sugar in some parts of the world.

GLACÉAU VITAMINWATER

Glacéau Vitaminwater has always been a simple idea. start

with water. and then add bold, fruity flavors and just the right amount of sugar to make it

delicious. finally, top it off with a little extra nutrition. genius. and it never would’ve

happened if someone hadn’t looked at a plain bottle of water and said, “what if this was a

little better?” making things a little better is what makes glacéau vitaminwater great.

glacéau vitaminwater, the pioneer of the nutrient-enhanced water beverage category, is

available in over 26 countries. grab a cold vitaminwater and make your day a little better.

Also available with no calories in many countries—glacéau vitaminwater zero.

DEL VALLE

DIPLOMA IN BUSINESS MANAGEMENT 34

PRINCIPLES OF MARKETING MKT2013

Del Valle Brand has its roots in Latin America and recently

joined our ‘billion’ dollar brand status within TheCoca-Cola Company portfolio of

brands. It has a diverse juice line up ranging from 100% juices and nectars to juice drinks

and is available in different convenient packaging for the whole family. The brand is

available in Mexico, Brazil, Colombia, Venezuela, Central America, and other markets in

Latin America.

GLACÉAU SMARTWATER

Glacéau Smartwater is inspired by the way mother nature

makes water, known as the hydrologic cycle. We simulate this process by vapor distilling

water, making every drop as pure as the very first drop of rain (before it passes through

pollutants, of course). If that’s not smart enough, we then one-up mother nature by adding

in electrolytes for a clean crisp taste. If that sounds like genius, it is. Smartwater is smart

because it’s made that way.

MELLO YELLO

DIPLOMA IN BUSINESS MANAGEMENT 35

PRINCIPLES OF MARKETING MKT2013

The smooth citrus taste of Mello Yello has refreshed people's

thirst for over two decades. Its unique taste and confident, in-control style sets it apart

from other soft drinks. Mello Yello highlights the smooth choices in life - because when

you drink Mello Yello, everything goes down easy.In October 2006, after pressure from

Vilasa Chandra Izquierdo, Mello Yello was relaunched in New Zealand as a 'limited

edition' product after a long absence, of at least 15 years, from the local market. The

relaunched New Zealand version contained the original 1980s logo, and just like when it

was available in the 1980s even contained the words A Product of the Coca-Cola

Company on the bottle top. This 'limited edition' release was only available in 600ml and

1.5 litre plastic bottles and contained the words Limited Edition. Only 200,000 cases of

the promo product were produced in 2006 according to Coca Cola. Mello Yello was once

again relaunched to the New Zealand market in October 2007 and was available until the

end of 2007. It has now been relaunched in New Zealand again as 'limited edition' for the

summer months. In late June 2011, Mello Yello was relaunched in Japan. Packaging in

Japan carries a 'Smooth Taste Smooth Times' slogan and a 'Since 1983' badge on the side

of cans and bottles. Melloyello-Japan-2011 In Australia, the Mello Yello brand has

returned during the 2012-2013 summer, with a 1980s era logo being used. In small type,

the packaging says, "Mello Yello presented by Lift"; however, the contents are not Lift.

Lift is also available in 1990s-themed packaging. This Mello Yello is not caffeinated. It is

notable that Mountain Dew in Australia had not been caffeinated until about six months

prior to this release. This release therefore returns something similar to the "old" flavor of

Mountain Dew to the Australian market

DIPLOMA IN BUSINESS MANAGEMENT 36

PRINCIPLES OF MARKETING MKT2013

FUZE

FUZE® is reinventing the juice drink experience with its line of

flavored beverages that blend together the goodness of diverse fruity flavors and

nutritional ingredients. The new and improved FUZE is now available in twelve

mouthwatering flavor varieties, each of which is an excellent source of antioxidant

Vitamins A, C and E.

FUZE TEA

FUZE TEA is a new global tea brand from the Coca-

Colafamily that is a fusion of tea with fruit flavors and other natural ingredients. Created

through a special process that ensures a delightful fusion of tea, fruit and other natural

flavors, FUZE TEA delivers a fresh, contemporary expression of tea.

DIPLOMA IN BUSINESS MANAGEMENT 37

PRINCIPLES OF MARKETING MKT2013

BURN

With a potent combination of energizing ingredients, burn

is designed to invigorate your senses and to give you the power to keep it going.

Available in 76 markets throughout Europe, Africa and Latin America, burn is popular

among adventurous trendsetters.

HONEST TEA

Honest Tea®, the nation's #1 organic bottled tea, delivers

great-tasting, lower-calorie refreshment. Each tea is freshly brewed using organic tea

leaves and a touch of organic cane sugar. Honest Ade® and Honest Kids®, organic

caffeine-free thirst quenchers, are 50 calories or less per serving. Honest Tea is USDA

Certified Organic, OU Kosher, Fair Trade Certified™ and is available at retailers

nationwide.

DIPLOMA IN BUSINESS MANAGEMENT 38

PRINCIPLES OF MARKETING MKT2013

NOS

Popular among auto enthusiasts, NOS is sold in 16-oz.

cans and 22-oz. re-sealable bottles, with the latter bearing a resemblance to actual Nitrous

Oxide canisters used in automotive performance. The unique 22-oz. package won a

National Association of Container Distributors packaging innovation award in 2007.

NOS Energy Drink was developed in 2005 by FUZE Beverage and Holley Performance

Products and was purchased by TheCoca-Cola Company in 2007.

ODWALLA

With a vivacious medley of scrumptious beverages and

bars, Odwalla artfully blends the best ingredients from nature with the latest learnings in

nutrition. Odwalla products never contain any artificial colors, flavors, preservatives or

genetically modified ingredients. The Odwalla line includes Superfood(TM), smoothies,

pure juices, proteins and energy.

DIPLOMA IN BUSINESS MANAGEMENT 39

PRINCIPLES OF MARKETING MKT2013

POWERADE ZERO

Electrolytes without the calories. POWERADE ZERO™ is a

great-tasting electrolyte-enhanced sports and fitness drink. It combines electrolytes with

fluids for hydration. It quenches thirst and replenishes minerals lost during sports or other

intense activities.

DIPLOMA IN BUSINESS MANAGEMENT 40

PRINCIPLES OF MARKETING MKT2013

PROCESS OF BUSINESS

The Coca-Cola System

We are a global business that operates on a local scale, in every community where we do

business. We are able to create global reach with local focus because of the strength of

theCoca-Cola system, which comprises our Company and our more than 250 bottling

partners worldwide.

The Coca-Cola system is not a single entity from a legal or managerial perspective, and

the Company does not own or control all of our bottling partners.

While many view our Company as simply "Coca-Cola," our system operates through

multiple local channels. Our Company manufactures and sells concentrates, beverage

bases and syrups to bottling operations, owns the brands and is responsible for consumer

brand marketing initiatives. Our bottling partners manufacture, package, merchandise and

distribute the final branded beverages to our customers and vending partners, who then

sell our products to consumers.

All bottling partners work closely with customers -- grocery stores, restaurants, street

vendors, convenience stores, movie theaters and amusement parks, among many others --

to execute localized strategies developed in partnership with our Company. Customers

then sell our products to consumers at a rate of more than 1.8 billion servings a day. In

January 2006, our Company-owned bottling operations were brought together to form the

Bottling Investments operating group, now the second-largest bottling partner in the

Coca-Colasystem in terms of unit case volume.

DIPLOMA IN BUSINESS MANAGEMENT 41

PRINCIPLES OF MARKETING MKT2013

Coca-Cola Systemwide Performance

In April 2007, associates from The Coca-Cola Company and several of our largest

bottling partners met for the first time to discuss the development of a core set of

performance indicators for the Coca-Cola system. Working groups of Company

associates and representatives from our bottling partners have been formed to determine

the feasibility -- due to the legal and management complexity of the Coca-Cola system --

of collecting and consolidating economic and social data in addition to the environmental

data already collected. Many of our bottling partners produce their own corporate

responsibility reports which can be viewed in the Sustainability Reports section.

Coca-Cola Refreshments (CCR)

What is CCR? The Coca-Cola Company and the largest bottler, Coca-Cola Enterprises,

took actions in 2010 and 2011 to strategically advance our partnership. The Coca-Cola

Company has acquired CCE's entire North American business, renaming the sales and

operational elements of Coca-Cola Enterprises North American businesses to Coca-Cola

Refreshments (CCR). Additionally, The Coca-Cola Company has folded in the vast

majority of its U.S. and Canada businesses into CCR. This is an exciting development in

the history of the world's greatest brand.

DIPLOMA IN BUSINESS MANAGEMENT 42

PRINCIPLES OF MARKETING MKT2013

MARKETING PROCESSING

Coca-Cola has had a long-standing commitment to responsible marketing for many

years, and in 2009 we set out explicitly what these commitments mean in practice.

The Responsible Marketing Charter is a set of principles that guide our entire approach to

marketing and establish firm rules for what we should and shouldn't do. We use

independent auditors to check that we're complying with the principles set out in the

charter.

Some highlights from the Responsible Marketing Charter

We don't market any drinks to children under 12 because we believe parents

should choose the drinks that are right for their families. We help parents make

informed choices through better consumer information

We will work with an independent consultancy to constantly monitor TV ad

placement.

We do not have direct commercial agreements with primary schools and are only

in secondary schools by invitation.

We will not associate ourselves with cinema films where the core audience is

under 12.

Online marketing is a fast-growing area at the moment and we want to make sure we're

being responsible here too. With the International Business Leaders Forum we've

launched a Responsible Marketing Network online - a network that brings together

marketing practitioners to share best practice and solve issues.

Talking with our consumers

We'll also continue to have a dialogue with consumers and other stakeholders on

responsible marketing, to ensure we keep delivering a wide variety of great quality

drinks.

DIPLOMA IN BUSINESS MANAGEMENT 43

PRINCIPLES OF MARKETING MKT2013

Since its beginnings, Coca-Cola has built its business using a universal strategy based on

three timeless principles is acceptability, affordability and availability. Acceptability is

through effective marketing, ensuring Coca-Cola brands are an integral part of

consumer's daily lives, making Coca-Cola the preferred beverage everywhere.

Affordability is Coca-Cola guarantees it offers the best price in terms of value for money.

Availability is making sure that Coca-Cola brands are available anywhere people want

refreshment, a pervasive penetration of the marketplace.

Global advertising

Advertising also is a marketing process for Coca-Cola. Advertising is a most effective

force in gaining social acceptance for any product and Coca-Cola has recognised and

used this power from its very first advertisement in 1892.

Over the decades, by emphasising youth and energy, Coca-Cola has created advertising

slogans, or 'straplines' , which are memorable, innovative and still relevant to the brand

today:

1886 - Delicious and Refreshing

1929 - The Pause that Refreshes

1942 - It's the Real Thing, often used since 1942

1963 - Things go Better with Coca-Cola

1971 - I'd like to Teach the World to Sing

1976 - Coke Adds Life

1982 - Coke is It

1989 - Can't Beat the Feeling

1993 - Always Coca-Cola

1996 - Eat Football, Sleep Football, Drink Coca-Cola.

Coca-Cola is able to engage in global advertising because the messages created about its

products have a universal appeal. Coca-Cola's powerful brand personality has become a

vehicle for promotion in its own right. Coca-Cola has provided a platform for a number

of highly successful artistic and sporting events, including the Olympics. The brand has

also proven to be strong enough to support a wide range of branded merchandise bought

not only for its quality, but because it is fashionable.

DIPLOMA IN BUSINESS MANAGEMENT 44

PRINCIPLES OF MARKETING MKT2013

Using market research to develop a product range

1) The soft drinks category

Coca-Cola GB(Great Britain) operates in the non-alcoholic beverage market. How these

beverages are supplied to consumers varies enormously, from vending machines that

supply single units to supermarket multipacks. In soft drinks alone, Coca-Cola GB(Great

Britain) has a broad range of over 80 products.

2) Building the range

A business can enlarge its product range in two ways is internally, through new product

development based on market researchand externally, by acquiring related companies,

and if appropriate, building on their existing range.For example, in 1999 The Coca-Cola

Company purchased, in various countries, soft drinks brands from Cadbury Schweppes

plc, including Dr Pepper, Oasis, Kia-Ora and Malvern. The acquisition of Schweppes

provided the opportunity to complement the range and to accelerate growth through new

product development. Coca-Cola GB's(Great Britain) approach to new product

development is uncomplicated. It innovates to meet consumer demands; the consumer

has a central role in the research and development process.

3) Organising around the consumer

This case study focuses on the activities of Coca-Cola GB(Great Britain), an organisation

focused solely on meeting consumers' needs in line with the Company's mission

statement. At the centre of Coca-Cola GB(Great Britain) is its marketing department. Its

primary purpose is to discover what consumers want and ensure the organisation delivers

DIPLOMA IN BUSINESS MANAGEMENT 45

PRINCIPLES OF MARKETING MKT2013

this.

Placing marketing at the heart of the organisation enables Coca-Cola GB to grow the

product range in ways that best meet consumer requirements through developing such as

new drink categories examples sports drinks, new products within an existing category

example Winnie the Pooh Roo Juice and new variants of existing products (brand line

extensions/pack innovations) example Fanta Icy Lemon.

4) Category segmentation

By dividing a category into segments, businesses can identify different groups of

consumer wants. It is then possible to design products to meet those requirements. Each

segment within the overall range of Coca-Cola meets specific consumer wants. Coca-

Cola GB carries out extensive market research to identify consumer wants in every

segment of category in which it operates. For example, market research analysis of the

demographics of consumers in Great Britain revealed a growth in smaller households.

The appropriate product response was to produce 1.25 litre share-size bottles. A study of

occasions when people drink sports drinks showed the importance of making it available

in leisure centres. Other research showed that the famous original Coca-Cola glass bottle

is best targeted at restaurants and special party occasions. Market research into where

specific products are consumed influences the design of pack types e.g. a 2 litre bottle for

family consumption at home and a smaller 500ml bottle for consumption 'on the move'.

DIPLOMA IN BUSINESS MANAGEMENT 46

PRINCIPLES OF MARKETING MKT2013

5) Market research

Market research means systematically gathering, recording and analysing market data.

Primary research involves going 'into the field' (e.g. house-to-house or street surveys).

Secondary research involves using existing sources of information to research the market

such as published reports or articles, or searching the Internet. There are two main

approaches to 'primary' market research is quantitative research collecting information

from a broad population sample example by conducting extensive surveys, used when

Coca Cola GB(Great Britain) wants to gauge appeal across a wide audience and

qualitative research working with small 'focus' groups. This involves far more detailed

investigations, e.g. gathering a small group of 'typical' consumers to taste test products or

to talk about their preferences and experiences of using different products. Qualitative

research, whilst not representative of the views of the general population, provides

greater insight into 'why' people think what they think.

Coca-Cola GB's(Great Britain) research process has five stages:

Firstly, Identify opportunity such as does it fit into an existing or new product category?

and Who are the target consumers? What do they want? The method is desk research.

Secondly, Explore solution such as What is the best solution?

-a new product?

-a product extension?

-a new packaging concept?

-a new design?

The method is qualitative research using focus groups and in-depth interviews one to one.

Thirdly, measure suitability/effectiveness. Evaluate the relative appeal of alternative

solutions in terms of meeting consumer requirements. The method quantitative research

through face-to-face, telephone/internet interviews. Fourtly, test market as it is very

expensive for a company to launch a new product, before going for a full market launch it

often pays to try out new product ideas in a 'test' market. This may be launching the

product in just one region of Great Britain, with just one retailer or conducting a

'Simulated Test Market'. The method is quantitative research from participants in a test

sample of consumers who physically live with the test product for a period of days. There

DIPLOMA IN BUSINESS MANAGEMENT 47

PRINCIPLES OF MARKETING MKT2013

are three stages is concept research is to determine whether consumers like the 'concept'

of the new product. Next, product attributes is to determine whether the actual 'product'

offering matches the 'concept'. Moreover volume assessment is to determine whether

consumers will actually buy the new product and what, if any, existing products it will

replace. Future more, track market performance. This involves tracking the product's

success once it has been launched e.g. by recording sales figures, numbers of people

familiar with the product. The method is quantified continuous rolling study with

consumers and/or analysis of Electronic Point of Sale data (sales information gathered via

retailers' tills).

6) Product development

Ansoff's matrix is a useful tool for examining a company's product range. This compares

the alternatives of developing new products and new markets. There are four main

options is market penetration is selling more of the same types of product to the same

types of people. Next product development is building on existing relationships with

consumers and on a creative ability to develop new products suited to consumer wants.

Future more, market development is developing an existing product to cater for emerging

markets. Finally, diversification: developing new products for new markets.

Coca-Cola Great Britain using market research to develop a product range.

DIPLOMA IN BUSINESS MANAGEMENT 48

PRINCIPLES OF MARKETING MKT2013

7) Developing the range

The company's Business Intelligence and Planning Department is responsible for

collecting the research and presenting it to the Consumer Marketing Department. The

following examples illustrate ways in which Coca-Cola GB(Great Britain) has developed

its product range.

1. Coca-Cola Vanilla

There had not been flavour innovation involving Coca-Cola since 1986 when Coca-Cola

Cherry was launched. However, recently Coca-Cola Vanilla had a successful launch in

the USA, so it was decided to test its potential in Great Britain. Product evaluation

involved carrying out taste testing to identify the best formula/flavour for consumers'

palates in Great Britain. At the same time, considerable effort was put into graphic

development. It was important for the pack design to incorporate the Coca-Cola trade

mark, thus remaining true to the Coca-Cola family, but also to differentiate the new

flavour. Consumer focus groups were used to identify the preferred design. In addition a

simulated test market was carried out. On the basis of the background market research it

was possible to forecast likely sales volumes. This calculation was based on the type and

level of support the brand flavour launch would receive (e.g. advertising, sampling,

promotions, price and distribution), consumer perceptions and claimed behaviour (what

the consumers said they would do). The results were favourable and supported the launch

of this flavour in Great Britain.

2. Fanta Icy Lemon

The development of this new flavour stemmed from listening directly to consumers who

called the Company's careline to enquire about the availability of a lemon Fanta based on

their experience on holidays abroad. As a result, the Company undertook a series of

quantified product taste tests and once the preferred flavour was identified, Fanta Icy

Lemon was launched in 2001. The launch was a great success and the brand has

subsequently been complemented by a range of other flavours.

DIPLOMA IN BUSINESS MANAGEMENT 49

PRINCIPLES OF MARKETING MKT2013

3. Coca-Cola Share Size 1.25 litre Bottle

Desk research showed a growth in the number of smaller households, plus a change in the

way we shop. The research identified a need for a bottle size that was ideal for top-up

shoppers or 1-2 person households to share over dinner. This was followed up by

qualitative research to confirm consumer appeal in relation to alternative pack formats.

Quantitative in-store test marketing was also carried out to measure rates of sale. This

was supported by the scrutiny of retailer loyalty card data to identify types of households

purchasing the new bottle size.

4. Powerade

Desk research identified an opportunity for a new brand within the sports drink segment.

Research was used to identify target consumers and desirable product positioning.

Qualitative research using focus groups was carried out to assess the 'Powerade'

proposition and the most suitable creative advertising. Quantitative product taste testing

was also carried out to make comparisons with other products, already in the market

place.

8) Launch evaluation

For any new product launch, Coca-Cola GB(Great Britain) evaluates its success, looking

specifically at the various elements of the launch activity, including distribution,

advertising, packaging and product taste. Data is collected from leading marketing

research organisations, the company's consumer careline, Coca-Cola bottlers, and a

consumer tracker report that measures consumers' brand awareness.

Promotion

Coca cola adopts various advertising and promotional strategies to create an increased

demand in the market by associating with life style and behaviour and mainly targeting

value based advertising. You are more likely to see a coke ad individualised for a

particular festival or in with a general positive message. Coca-cola uses CSR as its

marketing tool to gain emotional benefits in consumers mind. The current promotions

DIPLOMA IN BUSINESS MANAGEMENT 50

PRINCIPLES OF MARKETING MKT2013

through CSR include “Support my school” campaign with NDTV. It has many brand

ambassadors like Shahrukh khan, Hrithik Roshan, South Indian Actor Vijay and Trisha ,

Ghambir, Aamir khan etc and has signed contract recently with Imran khan. It allows

price discounts and allowances to distributors and retailers in order to push more products

into the market. It employs both push strategy through promotions and pull strategy

through advertisements and campaigns.

The latest 6 months promotion of Coca-Cola:

DIPLOMA IN BUSINESS MANAGEMENT 51

PRINCIPLES OF MARKETING MKT2013

Conclusion

Coca-Cola GB(Great Britain) seeks to develop intelligently its product range in order to

'benefit and refresh everyone'. Building the range involves developing existing and new

products in existing and new markets. The key to maximising consumer satisfaction lies

in doing the market research properly and getting the range right.To produce the world's

best known product, The Coca-Cola Company has to employ the highest quality

processes and establish standards which guarantee the production of a standardised

product which meets consumers' high expectations each and every time they drink a

bottle or can of Coca-Cola. In order to guarantee these standards the Company has had to

develop a close relationship with its franchisees based on a mutual concern for quality.

Total Quality Management lies at the heart of this process involving a continuous

emphasis on getting quality standards right every time and on continually seeking new

ways to improve performance.The Coca-Cola Company has built internal and external

structures to support the delivery of its business goals. The regional structure is the best

way of supporting this growth, allowing attention to local requirements while at the same

time building on a clear strategic direction from the centre. A culture of innovation,

teamwork and partnership means that the Company has a firm foundation of relationships

and open communication channels on which to build its growth. Based on my opinion I

have learned about how Coca-Cola produce and display to the all the places and also how

company developnment. Moreover we also have learned the technologies has been

increasing to advanced.

DIPLOMA IN BUSINESS MANAGEMENT 52

PRINCIPLES OF MARKETING MKT2013

REFERENCES

http://www.econsense.de/sites/all/files/executive-summary-english.pdf

http://www.coca-cola.co.uk/about-us/coca-cola-mission-vision-statement.html

http://www.coca-cola.co.uk/about-us/introducing-our-business.html

http://www.coca-cola.co.uk/about-us/history-of-coca-cola-1886-1892.html

http://www.coca-cola.co.uk/about-us/history-of-coca-cola-2000-now.html

http://www.slideshare.net/angelynablihan/coca-cola-marketing-plan-11647532#

http://www.coca-colacompany.com/brands/product-descriptions

http://www.coca-colacompany.com/stories/quality

http://www.coca-colacompany.com/our-company/the-coca-cola-system

http://www.coca-colacompany.com/brands/products-descriptions

http://www.yourarticlelibrary.com/marketing/marketing -mix-product-price-place-

andpromotion-4ps/5395/

http://www.coca-cola.co.uk/faq/company/how-many-countries-sell-coca-cola-is-there-

anywhere-in-the-world-that-doesnt.html

http://www.coca-colacompany.com/our-company/the-coca-cola-system

DIPLOMA IN BUSINESS MANAGEMENT 53

PRINCIPLES OF MARKETING MKT2013

DIPLOMA IN BUSINESS MANAGEMENT 54