Marketing Plan:

Coca-Cola in 2015

Professor Jasso

Spencer Cheung

861093142

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Index

1) EXECUTIVE SUMMARY 3

2) INTRODUCTION 3

3) FINANCIAL OVERVIEW 4

4) MARKET DESCRIPTION 5

5) PRODUCT REVIEW 7

6) COMPETITIVE COMPANY INFO 8

7) CHANNELS AND LOGISTICS REVIEW 10

8) MARKETING ANALYSIS 11

a) Marketing mix 11

b) SWOT Analysis 11

9) MARKETING PLAN 12

a) Objective 12

b) Marketing strategy 12

4. Promotion Mix 14

c) Action plan 16

10) CONTROLS 16

11) REFERENCE 18

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1) Executive Summary

Coca Cola Company is the first soft drink leading company in the world. It operates around the world with

more than 100 countries. They own and license all categories of nonalcoholic beverages. This marketing plan

is a recommendation for Coca Cola Company. We position ourselves as a beverage company. We will take

advantage of how Coca-Cola Co. communicate with our customer through the usage of different source

including social media. Our primary objective is to increase our market share in the world, increase our brand

awareness in new markets, and finally, to connect with more consumers than we ever did.

2) Introduction

a) Background

Coca-Cola began in 1886

It originated from a flavored syrup, mix with carbonated water

Frank M. Robinson named this brand “Coca-Cola” along with its trademark

b) Mission

Coca-Cola Company has the following missions.

To refresh the world- with our products, the process of consuming is not only refreshing to you as

an individual but as along with everybody around the world

To inspire moments of optimism and happiness- with our brand’s name, reputation, and the things

we are partaking

To create value and make a difference- all our products has its own value in the minds of the

customer, we are trying to change the world by making a difference in terms of recycling and

reusing our materials

c) Vision

Our mission of Coca-Cola Company is we are trying to achieve as a goal, we will try to achieve the goal

with our connection with the customer along with our product.

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

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

people's desires and needs.

Partners: Nurture a winning network of customers and suppliers, together we create mutual,

enduring value.

Planet: Be a responsible citizen that makes a difference by helping build and support

sustainable communities.

Profit: Maximize long-term return to shareowners while being mindful of our overall

responsibilities.

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

d) Values

Coca-Cola Company creates the following values as a guideline.

Leadership

Collaboration

Integrity

Accountability

Passion

Diversity

Quality

3) Financial Overview

2009 2010 2011 2012 2013

Stock Price $ 24.45 $ 29.10 $ 31.85 $ 33.93 $ 39.78

Operating Income 8231M 8413M 10173M 10779M 10228M

Net Operating Revenue 30990M 35119M 46542M 48017M 48954M

All Stock prices are based on December of each individual year.

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Financial overview tells us an estimate of how a company is doing. Based on the figures we see above from the

year 2009-2013, we could see a constant growth every year based on a couple reasons. One, we are working

around the clock on new markets to adopt to our product, leads to an increase of revenue. Second, consumers

understands our mission that they will continue to buy our products, in this case, causes a steady flow of

income year after year. The strategy Coca-Cola Company is using is optimizing advertisement and sponsorship

for brand awareness. Though our operating income is gradually climbing year after year, our stock prices

reflects upon how our company is achieving a higher standard each year, not to mention our net operating

revenue is increasing yearly, though we are spending more on operating expense, but we are generating more

revenue by doing so.

4) Market Description

Stage of Development Segmentation

New Market, Emerging Market, Developed Market

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New Market, uses Coca-Cola branding for brand awareness

Emerging Market- core brand focus, increasing image against competition

Developed Market-alcohol-free beverages

Price difference from Low, Medium, and High

Target- New Markets, example like China, Russia, and India

Position- First company to offer soda like Coca-Cola unlike other competitors

Our brand is a guarantee of satisfaction and other health concerns

We will have a product that is right for each individual customer

Coca-Cola has differentiate its market into three main segments that is more approachable due to many

factors including the different markets as in countries rather than targeting a portion of the country’s

population, which is not ideal and pricier just to segment that portion. A country could generate more

revenue that that specific group, country’s population means revenue for the company.

Coca Cola Company categorized countries into three different segments and they are the following.

New Market, Emerging Market, Developed Market

New Market categorized as a market that we are trying to approach; this is a new territory for our company.

Our brand is not known for that particular country and we must invest on brand awareness above all else. We

then target all age group, all ethnicity, and all sexes for their population to know our brand. Some new

markets include India.

Emerging Market categorized as a market that we have already approach, and the majority of the population

knows about our brand’s name. Then we start to propaganda how our brand is superior to our competitors in

terms of brand, quality, health, and the benefits of drink Coca-Cola.

Developed Market categorized as a market that the whole population knows about Coca-Cola and its

subsidiaries. We do not have to promote as extensive as emerging market because most of the population in

this segmentation are already loyalist to our brand. We do not have to push as hard as the other two

segmentation.

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Since three segmentation has different view of Coca Cola Company, our prices must adjust fairly in terms of

how people will approach our brand. In new markets, we must price our product lower for them to consume

our product, spread our company by word of mouth, and mostly for the majority of the population, getting to

know our brand. Emerging market is a stage where we have already done some propaganda, we could now

charge a higher price compare to new markets because one, the money we spend on advertisement, second,

and the population are willing to pay extra just for our product. For developed market, there is no doubt we

would charge the highest because they have already become loyalist, they are willing to pay the market price

without hesitation for our product.

5) Coca-Cola Co. Product Review

Sparking Beverages Coca-Cola , Coca-Cola Zero/Coke Zero, Diet Coke/Coca-Cola light, Fanta, Fresca, Sprite

Energy Drinks Burn, NosStill Beverages Coffee &Teas, Matte Leao TeasJuices Minute Maid, Minute Maid PulpyOther Still beverages Glaceau Vitamin water, Fuze, Sports drinks, Powerade, Dasani,

ZICO pure premium Coconut Water

Coca-Cola is introducing a large line of products from our tradition, most iconic product from the sparkling line,

“Coca-Cola”. As time gradually moves, we introduce a large array of products including its lower sugar product,

“Diet”, to many other sub drinks including energy drinks like NOS, still beverages like coffee and tea, juices like

Minute Maid, and other still beverages including sports drinks, Dasani Water, or Vitamin water.

While health has becoming a taunting concern, we are not targeting our product’s sugar, sodium, and calories to

an optimal level for its sugar products

Coca-Cola has always been an alcohol free beverage in terms of all the beverages in the market. Our soft drink

might consist a high amount of sugar but we have include a wide range of product line for the different consumers

including diet beverages, tea product, vitamin water, juice and water itself. This should target a wide variety of

consumers ranging from having a soda for relief to a health maniac with our other products. Though our soda has

a high amount of sugar, people who buy our product has a wide variety to choose from, and most importantly,

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people that are buying our product has already became a loyalist. Coc

Cola Company has a market share of a proximate 42% in the U.S. market

6) Competitive Company Info

Coca-Cola was the first to introduce non-alcoholic beverages in the worst but it’s not a monopoly company

compare to some other industry. As our company is gradually doing better and better, new competitors enter the

market. Then we start to introduce many different lines of products including water, juice, energy drink, non-

sparkling product.

The rivalry between Coca-Cola Company and PepsiCo has been fierce; this is not monopoly but rather a duopoly as

we are the two largest beverage companies competing for number one. Both companies’ combined dominates the

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market share while the rest have little. Advertisement is now the battle between the two companies to see which

stands out more.. Pricing should also be a factor but it is not the focus between the two companies. Rather it’s on

the local level, Coca-Cola against a brand in India.

2014 Annual Sales 1 2014 Net Profit Margin 1

Company Name Revenues Net Income Total Assets

Coca-Cola Co (The)4599800000

0 7098000000 92023000000Dr Pepper Snapple Group Inc 6121000000 703000000 8273000000

Nestle S.A.9286921765

4 14614025041134908802003.0

0

PepsiCo Inc.6668300000

0 6513000000 70509000000

Pepsi Co Inc Beverages and Snack Incorporation

Main Competition comes from their beverages, but they have an edge against us due to the fact that they have other lines of subsidiaries that includes snacks

Dr Pepper Snapple Group Inc

Beverages Company Main competition comes from their beverage line similar to the product line of Coca-Cola Company, while they have exclusive drink like their famous Dr. Pepper

Nestle S.A. Beverages, snacks, ice cream, dog food

Main competition comes from their beverage products. But not only their product is the competition, they have so many lines of products including food, snacks, ice cream, dog food, coffee that dominates penetrates all aspects of the market.

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7) Channels and Logistics Review

We are using two distribution channels in order for our products to be in the hands of our consumers.

First channel is how we will distribute our product line to key accounts ourselves, with has a huge demand

for our product

Super markets: all super markets include Lucky, Walmart, Target

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Second channel is how we will distribute our product through the use of contracted distribution company

where the demand is there, but it’s not as large as key accounts

Outlets: Soda machines, and food chains

Restaurants: All restaurants that wants to sell non-alcoholic beverage

8) Marketing Analysis

a) Marketing mix

Product-Our brand, Coca-Cola Company and all beverages under the main company Coca-Cola

Company and all its subsidiaries beverages including PowerAde, Glaceau

Price- our pricing standards is affordable all over the world, it is easily accessible in terms of dollar

value, simply, it is cheap to obtain, depending on the market, and prices will adjust. Emerging

market will have a higher price tag. While new market, we will use penetration marketing.

Place- our product could be obtained in more than mile distant no matter where our consumers are

located, our product are conveniently located in super markets, restaurants or even gas stations

Promotion- we communicate with our consumers by packaging our product during special

promotion like the world cup, or even Olympics. We also have can distribute machines with no

transaction inlets, and there’s only a “hug me” sign where consumers would engage the machine for

it to dispense soda free of charge, then the word of mouth begins, this is not only a connection

between Coca-Cola Company and its consumers but also consumers to consumers

b) SWOT Analysis

i. Strength

The first non-alcoholic beverages in the world

Our PR and the connection between the company and consumers are top notch

Any subsidiaries brand under the Coca-Cola Company, guarantees a good quality

Different timing advertisement different activities sponsorship, or even seasonal

Our product is reachable around the world

We have one of the strongest marketing group in the world, with our adverse selectin of

advertisement

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ii. Weakness

Obesity from soda is a problem, most of our product contains sugar

All of our product is liquid beverages, we don’t have any other subsidiaries that doesn’t

contain beverage

High water consumption compare to some other competitors where they are selling snacks

iii. Opportunities

Innovation in terms of technology could decrease opportunity cost

We should include wide array of heathier beverages, and even think about the snack market

There are still a couple emerging markets that we should take advantage.

Spread the brand into new heights than ever before

iv. Threats

There are more competitors than the company first open

There lots of substitutions for soda, such as unsweet soda water, Perrier

Water scarcity is becoming a reality

9) Marketing Plan

a) Objective

i. Increase our potential market share

ii. Increase our connection with our consumers

iii. Increase brand awareness in all markets

b) Marketing strategy

Coca-Cola Company is the number one non-alcoholic beverage companies in the world. We

offer our traditional drinks including Coke, Sprite alongside with its diet version. We had been

using many different strategies directing our company to a global market. Coca-Cola Company

could be consider a Global Corporation because we look at this huge world market as a single

identity, but of course, things have to change to better suit the different regions

Coca-Cola as a company along with is product in different regions have different product life

cycles. When we look at markets in the western atmosphere, we are already in the maturity

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stage, we must innovate in advertisement in order to sustain and stay within this stage.

However, for emerging markets, those are only in the growth stage, there are still a long wait

before it gets to maturity. For the two different stage, two different strategy must implement a

maximum result.

1. Positioning

Coca-Cola Company is positioning us as a non-alcoholic beverage company. We consider us as a

beverage company rather than positioning each of our product differently. We are the first

nonalcoholic beverage in this world; this set us as number one in the minds of the consumers

since there are no competition in the early years. Unlike other companies that are branching

out, we stay true to our core business. People look at Coca-Cola Co. products; they know we

have the best beverage in the world. Everything was a first; we would remain first in the

consumers’ minds.

2. Product Strategy

We must change up the packaging to give a new and refreshing view to our products and stay

within the competition in the global market. This could improve the positioning of our brand

and increase the happiness of our consumers. We must not forget our motive of a cleaner

future; we would be reusing our materials to be eco-friendly Company to the eyes of our

consumers and the prestigious brand name of our company.

3. Price Strategy

From the beginning to now, Coca-Cola Company pricing in terms of its product are affordability,

consumers are happy about our price and the experience we deliver. In terms of market share,

we have an astonishing 42%, we selling in mass quantity in a low price, causing a low profit

margin. We are not implementing skimming strategy because a bottle of beverage cannot

justified the high cost. Therefore, we are implementing market penetration, by offering a low

price product, but selling mass for dominance. In a low price scenario, we open the market for

new consumers trying to experience our brand, and this causes loyalist to spend more since the

price is reasonably cheap.

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4. Promotion Mix

a. Advertisement

Advertisement plays a major role in any brands along with their products because it

brings awareness to the people. Coca-Cola Company is one of them.

Television Large audience Could target specific television time(between shows) Most people stream shows online, ads could be skip

Magazine Target specific people, reading group People tend to ship ads page

Outdoor Large Billboards

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seen by large amount of people, as people are driving by,

Unavoidable. Downside, people ignore it

Stadium advertisement Large audience due to events Doesn’t work if the stadium has no events

Radio Slogan could be spread for the brand awareness Most people intend to change channels when advertisement is

coming up

Internet The use of social networking for a broader audience

b. Sales promotion

Sales promotion would change the behavior of the consumers. Overdoing sales

promotion does not increase our brand’s image. Not enough would results in a loss of

consumers that are not loyalist. By having a price cut, this would shift a large amount

of volumes from our production line to the sales floor but there is a problem with this

tactic, we might not hit our profit margin by doing so. In addition, by doing this too

often, it might increase our sales volume but our profit is much lower than

expectation.

c. Public relations

Public relations should bring a positivity in terms of our brands. It should also bring in

more consumers closer to Coca-Cola Company.

Over the years, Coca-Cola Company has sponsor many different events from world cup

to Olympics, where people could connect with us.

d. Direct and digital marketing

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Coca-Cola Company should take full advantage of social media since we could

communicate with our consumers directly through their comments. The way we uses

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Facebook to conduct our word of mouth and connecting with our consumers leads to

an exceptional amount of fans. This should continue to grow for to stay connected

with all of our consumers.

c) Action plan

1. Market test should be conducted for around 3-4 months, with global statistic to know

which market we should be releasing

2. Press release should last only a day just like any other

3. Advertisement should begin immediately after press release and this should continue

for a year, while alternating our new product and our existing product as a reminder

4. Penetration marketing strategy should be used when we launch this product in order to

gain momentum, and for people to better know our new product

5. If sales is better than expectation, we would release a diet version, and different sizes of

that particular beverage

10) Controls

Controls ActivitiesAdvertisement This is review based on the amount of people watching our ads

through different means of sources

Coca-Cola Company spends around a couple hundred million on advertisement; we must see which sector of

the advertisement in different media brings in the best results and invest heavily on that particular sector,

which would be television. If the view of advertisement through the media is not exceptional, then we must

rework our advertisement in order for our company’s message to reach our consumers.

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11) Reference

Comparing Global Strategies: Coke's View Of The World: "Stage Of Development" Segmentation. (1997). Black Book - Coke Seeks Domination, While Pepsi Streamlines, 13-14.

Ries, A., & Trout, J. (2001). Positioning The Battle For Your Mind. MC Graw Hill. Retrieved April 2015

Beverage Digest. Coca-Cola Company's market share in the United States from 2004 to 2014. InStatista - The Statistics Portal. Retrieved April 19, 2015, from http://www.statista.com/statistics/225388/us-market-share-of-the-coca-cola-company-since-2004/

Coca-Cola Company. Global revenue and financial results of the Coca-Cola Company from 2009 to 2014 (in million U.S. dollars). In Statista - The Statistics Portal. Retrieved April 19, 2015, from http://www.statista.com/statistics/264423/revenue-and-financial-results-of-coca-cola/

About Us Coca-Cola History. World of Coca-Cola. Retrieved May 25, 2015, from https://www.worldofcoca-cola.com/about-us/coca-cola-history/

Mission, Vision & Value. Coca Cola Our Company. Retrieved May 25, 2015, from http://www.coca-colacompany.com/our-company/mission-vision-values#TCCC

The Coca-Cola Company Products And Operations. Hoovers. Retrieved May 26, 2015, from http://subscriber.hoovers.com/H/company360/productsOperations.html?companyId=10359000000000&newsCompanyDuns=003296175

Hudspeth, C. (n.d.). The Coca Cola Company Competitive Landscape. Retrieved June 1, 2015, from Hoovers: http://subscriber.hoovers.com/H/company360/competitiveLandscape.html?companyId=10359000000000

Coca-Cola Co Competitors. (n.d.). Retrieved June 2, 2015, from Mergent Online: http://www.mergentonline.com/competitors.php?compnumber=1832

The Coca-Cola Company SWOT Analysis. (2014). Coca-Cola Company SWOT Analysis, 1-9.

Millward Brown. (n.d.). Leading 15 most valuable soft drink brands worldwide in 2015, based on brand value (in million U.S. dollars). In Statista - The Statistics Portal. Retrieved June 08, 2015, from http://www.statista.com/statistics/273063/leading-15-most-valuable-global-soft-drink-brands-based-on-brand-value/.

BOULDING, W., LEE, E., & STAELIN, R. (1994). Mastering the mix: Do advertising, promotion, and sales force activities lead to differentiation?. Journal Of Marketing Research (JMR), 31(2), 159-172.

Advertising Age. (n.d.). Advertising spending of the Coca-Cola Company in the United States in 2013, by medium (in million U.S. dollars) . In Statista - The Statistics Portal. Retrieved June 08, 2015, from http://www.statista.com/statistics/192253/us-ad-spending-of-the-coca-cola-company/.

Fan Page List. (n.d.). Leading product brands with the most fans on Facebook in May 2015 (in millions). In Statista - The Statistics Portal. Retrieved June 08, 2015, from http://www.statista.com/statistics/265657/leading-product-brands-with-the-most-fans-on-facebook/.

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