12/3/2015

| Malik Safdar

COCA

COLA MARKETING PLAN

M a r k e t i n g p l a n

.

Page 2

CONTENTS

ContentS .................................................................................................................................................................................. 2

EXECUTIVE SUMMARY……………………………………………………………………………………...………..3

2 INTRODECTION ..................................................................................................................................................... 3

2.1 MISSION ..................................................................................................... 3

2.2 Vision ......................................................................................................... 4

2.3 Goals .......................................................................................................... 4

3 PRODUCT AND SERVICE .................................................................................................................................... 5

3.1 Product ...................................................................................................... 5

3.2 Price ........................................................................................................... 5

3.3 Place .......................................................................................................... 5

3.4 Competition ................................................................................................ 6

4 MARKETING FOCUS ............................................................................................................................................. 7

4.1 Market search ............................................................................................. 7

4.2 Strategies ................................................................................................... 7

4.3 Demand of Market ...................................................................................... 8

5 Marketing plan ....................................................................................................................................................... 9

5.1 Television Advertisements ......................................................................... 9

5.2 Newspaper Advertisements ...................................................................... 10

5.3 Documentary ............................................................................................ 11

5.4 Budget ...................................................................................................... 11

6 Plan B .......................................................................................................................................................................11

7 Summery ................................................................................................................................................................12

M a r k e t i n g p l a n

.

Page 3

1 EXECUTIVE SUMMARY

I am the student of BBA studies in BZU LAYYAH CAMPUS and I have established this marketing

plan after critically examining and thoroughly researching over it. It consists of examining market

research, auditing situation analysis and carefully scrutinizing the soft drink industry and

possibilities for Coca Cola in the market. We have carefully analyzed the internal and external

business environments and critically examined the industry in general, considering all external

threats and opportunities. The following marketing plan forms the basis for the introduction of

an innovative new product by the Coca-Cola Company. The analysis allows us to outline the best

strategies to follow for the achievement of the company’s strategic goals. “Bubble Buzz” will be

marketed as a unique functional drink while striving to reinforce the company’s status as the

leader in innovation and successful product launches. The marketing strategies will enable to

reach a market size of an estimated 8,688,300 people (targeted) with a forecasted sales growth

prospect of 7.3% over the next 4 years ($243,029.47 profits), while satisfying the needs of the

still-unserved market for ready-to-drink bubble tea. Success will be reflected by a sizeable

capture of market shares within this market, while strategically carrying the company up to the

top spot as the market leader in the functional drinks segment of soft drinks. Export potential will

be considered in China.

2 INTRODECTION

The Coca-Cola Company traces it’s beginning to 1886, when an Atlanta pharmacist, Dr. John

Pemberton, began to produce Coca-Cola syrup for sale in fountain drinks. However the bottling

business began in 1899 when two Chattanooga businessmen, Benjamin F. Thomas and Joseph B.

Whitehead, secured the exclusive rights to bottle and sell Coca-Cola for most of the United States

from The Coca-Cola Company. The Coca-Cola Company’s core undertaking is to benefit and refresh

everyone it reaches. The objectives of the marketing plan are strategically cantered around 3

criteria: to create a strong consumer awareness towards a completely new bubble tea product from

Coca-Cola, to establish a wide brand recognition through the capture of market shares in the

functional drinks segment, and to become the top market leader in that particular segment within

the forecasted sales figures.

2.1 MISSION

“Our mission statement is to maximize shareowner value over time”

In order to achieve this mission, we must create value for all the constraints we serve, including our

consumers, our customers, our bottlers, and our communities. The Coca Cola Company creates

value by executing comprehensive business strategy guided by six key beliefs:

M a r k e t i n g p l a n

.

Page 4

1. Consumer demand drives everything we do.

2. Brand Coca Cola is the core of our business

3. We will serve consumers a broad selection of the nonalcoholic ready-to–drink beverages

they want to drink throughout the day.

4. We will be the best marketers in the world.

5. We will think and act locally.

6. We will lead as a model corporate citizen.

Everything we do is inspired by our enduring Mission:

To Refresh the World...in body, mind, and spirit.

To Inspire Moments of Optimism...through our brands and our actions.

To Create Value and Make a Difference...everywhere we engage.

2.2 Vision

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

deliver:

People: Inspiring each other to be the best we can be by providing a great place to work

Portfolio: Offering the world a portfolio of drinks 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 by helping to build and support

sustainable communities

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

responsibilities

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

2.3 Goals

Our goal is to try to give back as much, or where possible, more, than we take. We divide our

commitment into three main areas of focus: women, water and wellbeing.

Women

5 by20 is our commitment to empower five million women entrepreneurs by 2020. We’re

implementing programmes across the world which addresses the most common barriers women

face in the marketplace, and giving women access to training, financial services and mentoring.

5by20 is currently working in more than 40 countries.

Water

we understands the priceless value of water and we work vigorously to conserve water worldwide.

We’re working to replenish the water we use to make our drinks with the ultimate goal of being

water-neutral by 2020. At Our system is becoming more efficient in its water use by reducing the

amount used per litter of product. And Coca-Cola bottling plants around the world are recycling

M a r k e t i n g p l a n

.

Page 5

wastewater, treating it to stringent standards and returning it to nature at a level that supports

aquatic life - sometimes returning it cleaner than we found it.

Wellbeing

our priority is always our consumers and helping them to be healthy and happy. We believe choice

and information are two fundamental requirements to help consumers make healthy lifestyle

choices for them and their families. We also want to inspire people to move more, more often,

which is why we have pledged £20million to doing this between now and 2020.

3 PRODUCT AND SERVICE

3.1 Product

Businesses must think about products on three different levels, which are the core product, the

actual product and the augmented product. The core product is what the consumer is actually

buying and the benefits it gives. Coca Cola customers are buying a wide range of soft drinks. The

actual product is the parts and features, which deliver the core product. Consumers will buy the

coke product because of the high standards and high quality of the Coca Cola products. The

augmented product is the extra consumer benefits and services provided to customers. Since soft

drinks are a consumable good, the augmented level is very limited. But Coca Cola do offer a help

line and complaint phone service for customers who are not satisfied with the product or wish to

give feedback on the products.

3.2 Price

Since Coca Cola Intl faces a major threat from its competitor Pepsi Co., so naturally the Pricing is

done keeping in view the increasing rivalry with Pepsi. Pricing is basically standard for all over the

world. Price changes occur seldom after a longer period of time say, a year etc. Mostly prices are

devoid of governmental and/or political laws and regulations but in Pakistan, due to an ever

increasing rate of Inflation, prices have increased in a short span of time.

3.3 Place

The Coca Cola Company has always focused wide scale distribution. This is the reason, 94% of the

world’s population knows about Coke. “Coca Cola” is the most recognized word after OK.

Coca Cola sets its own distributions directly to stores. Stores include a wide variety of Supermarket,

Marts, Convenience Stores, Retail Stores and Departmental Stores. The channel distribution of Coca

Cola Intl is extremely large.

Over time, they have produced many products and thus have increased number of warehouses for

specific products.

Coca Cola Intl has also improved services via setting up a national service network.

M a r k e t i n g p l a n

.

Page 6

3.4 Competition

MAJOR COMPETETOR: PEPSI CO.

PepsiCo is a world leader in convenient foods and beverages, with revenues of about $27 billion and

over 143,000 employees. The company consists of the snack businesses of Frito-Lay North America

and Frito-Lay International.

Pepsi-Cola beverages are available in more than 190 countries and territories. In Asia, they selected

Lahore to make their regional office. This was done in 1970. This regional office is monitoring all the

operations carried out in South West Asia.

Pepsi Co. has focused on these marketing principles to attain their higher share of market in Asia:

Measuring Satisfaction using various techniques

Increasing customer perceived value (CPV)

Increasing shareholder wealth. The earnings per share are expected to grow to 116 Rs. In

2010.

Maintaining its supply chain management to ensure that the customer gets Pepsi exactly

when he requires.

Mass Marketing via advertising Pepsi with customer attraction areas e.g. celebrities

(Shahrukh Khan, Junaid Jamshed, Adnan Sami), Sports (Cricket), concerts (Haroon etc)

Price Indiscrimination all over the region

Focusing on Brand image

Customer retention schemes such as lucky draw, meeting your favorite celebrity etc

Adding social and ethical benefits to every bottle they sell.

M a r k e t i n g p l a n

.

Page 7

4 MARKETING FOCUS

4.1 Market search

The primary target market of the Coca-Cola Company is all consumers of all nations that have a

thirst for a high-quality beverage from a reputable brand that cares about small communities and

saving the environment. The Coca-Cola Company is well known for advertising to persons of all

ages, genders, incomes, ethnicity and lifestyles. Nevertheless, more specifically, over the last

decade the Coca-Cola Company has focused on a secondary target market, based on specific

psycho-graphic characteristics, of consumers that are health conscious and interested in buying

products to support their overall wellness. The Coca-Cola Company has reached this market through

many product lines, and has customized their website to provide healthy resources and marketing

of products that are considered smart choices.

4.2 Strategies

Product Strategy

The Core: Bubble Tea beverage in a pre-bottled, ready-to-drink format. Branding Colourful, aspect of play, round shaped, prominent Bubble Buzz logo written in modern font, catchphrases such as “Think outside the Bubble” and “Get Your Buzz”. Trade name: Bubble Buzz™, a Coca-Cola product Brand personality: energy, funky, cool, functional, original, funny, healthy, etc. Brand equity: Coca-Cola provides a quality, consistent, innovative and accessible soft drink reputation. Augmented product: Nutritional information, Status (social drink), Features promoting the

website, Health benefit of a green tea base. Marketing considerations

Product life cycle: Bubble Buzz is a low-learning product. With a strong marketing campaign, “sales

[will] begin immediately and the benefits of the purchase are readily understood” Since Bubble Buzz

is prone to product imitation, Coca- Colas strategy is to broaden distribution quickly, which is

currently feasible thanks to the company’s high manufacturing capacity.

Product class: Food & beverage, Soft Drinks, Functional Drinks

Price Strategy

The price strategy that will be undertaken should consider the following aspects:

1. Consumer demand

2. The product lifecycle

Customer demand

Customer demand is a crucial factor which is driven by tastes, income and availability of others

similar products at a different price (mentioned later in the potential substitutes section). For a lot

of consumers, value and price are highly related: ‘’the higher the price, the higher the value’’.

M a r k e t i n g p l a n

.

Page 8

Consequently, Coca-Cola’s intention to position Bubble Buzz as a unique, innovative and attractive

product gives it a certain control over Bubble Buzz price. To be able to implement higher pricing

though, the minimization of the non-monetary costs to customers should also be include

along with awareness of the product (notably by advertising) and value (benefits).

The product life-cycle

The company should take advantage also to the fact that the newer the product and the earlier in

its lifecycle the higher the price can usually be. It ensures a high profit margin as the early

adopters buy the product and the firm seeks to recoup development costs quickly and it also

brings a certain prestige to the product.

Promotion Strategy:

Objectives:

To initiate strong awareness about the launch of Bubble Buzz throughout Generation

Y (10-29 years old) consumers as well as their parents.

To win market shares over our top functional drinks competitor, PepsiCo.

Message:

The promotional outputs will convey the clear message that “Bubble Buzz is a healthy

drink for sporty and young people who simply enjoy taking care of their body and life.”

Concepts:

Think outside the bubble”: Be old, be Original, Be Different, Be Yourself.

“A good spirit in a good body.”

“For the out-of-the-ordinary individuals who like to challenge themselves.”

4.3 Demand of Market

Basic Concept of Demand and Supply and demand is perhaps one of the most fundamental

concepts of economics and it is the backbone of a market economy. Demand refers to how much

(quantity) of a product or service is desired by buyers. The quantity demanded is the amount of a

product people are willing to buy at a certain price; the relationship between price and quantity

demanded is known as the demand relationship. Supply represents how much the market can offer.

The quantity supplied refers to the amount of a certain good producers are willing to supply when

receiving a certain price. The correlation between price and how much of a good or service is

supplied to the market is known as the supply relationship. Price, therefore, is a reflection of supply

and demand. The relationship between demand and supply underlie the forces behind the

allocation of resources. In market economy theories, demand and supply theory will allocate

resources in the most efficient way possible. Let us take a closer look at the law of demand and the

law of supply. Demand means desire to purchase a commodity for which the consumer has the

power to purchase. So demand has two conditions:

1. Desire to purchase 2. Purchasing power

FACTORS AFFECTING DEMAND Price of relative goods: Demand for coca cola is also influenced by

the change in price of relative goods. In case of coca cola there are number of substitute goods

M a r k e t i n g p l a n

.

Page 9

available in the market, we have Pepsi, Miranda,Gorment, etc. now if the price of coca cola

increases from Rs 12 to Rs 22 whereas the price of other aerated drinks remain the same then the

demand for coca cola will fall down. C Quantity demanded coca cola Income of the Consumer:

There is a direct relationship between income of consumer and demand. Now coca cola being a

normal good, if there’s an increase in income, the demand will increase and vice versa. Taste and

preference: Taste and preferences of the consumers also influence the demand to greater extent. In

case of coca cola, if there are hard core consumers who prefer the taste of coca cola, even if the

price of coca cola increases, the demand will remain the same. But if the consumers have no taste

or preference of coca cola, then if the price increases the demand decreases. Government Polices

As the study shows, there was a steep reduction in the demand of coca cola when the pesticides

were found in few samples of coca cola. As a result consumer was shifting from coca cola to other

natural drinks so therefore the demand for coca cola decreased. Time: Time is an important factor

that affects the demand of coca cola e.g. the demand for coca cola goes up during festive seasons

and during summers Age of the population: This product is meant for the children, adults and also

for the old people so the age groups are not much affected the demand of the product so demand

remain same and by the increase in the population, the demand of the product also increases.

SHIFT IN DEMAND CURVES Shift in demand curves refers to the change in demand due to change in

factors other than price. Shift can be of 2 types:

1) Upward shift. 2) Downward shift.

Upward shift: When the demand for product increases, price being constant, due to change in

other factors e.g. Increase in income. If there’s an increase in the income of consumers in the

future, then there’s a possibility that the consumer will shift from local drinks in the market to coca

cola. From this figure we can see that when the income of the consumer increase in the future then

the demand for coca cola increases.

Downward shift: When the demand for the product decreases at same price.eg the demand for

coca cola reduces when people found that there were pesticides found in few samples of coca cola.

5 MARKETING PLAN

5.1 Television Advertisements

Fifty Years of Coca-Cola Television Advertisements: Highlights from the Motion Picture Archives at

the Library of Congress presents a variety of television advertisements, never-broadcast outtakes,

and experimental footage reflecting the historical development of television advertising for a major

commercial product. The online collection includes five excerpts from stop-motion

advertising developed for Coca-Cola between 1954 and 1956 by the D'Arcy agency and makes public

for the first time eighteen excerpts from the Experimental TV Colour Project of 1964, which

determined the best lighting for the cans, bottles, and performers in television advertisements.

Featured advertisements include the 1971 "Hilltop" commercial with an

M a r k e t i n g p l a n

.

Page 10

international group of young people on an Italian

hilltop singing "I'd Like to Buy the World a Coke"; the "Mean Joe Greene" commercial from 1979;

the first "Polar Bear" commercial from 1993; the "Snowflake" commercial from 1999; and "First

Experience," an international commercial filmed in Morocco in 1999.

5.2 Newspaper Advertisements

The mission of the Library of Congress is to make its resources available and useful to Congress and

the American people and to sustain and preserve a universal collection of knowledge and creativity

for future generations. The goal of the Library's National Digital Library Program is to offer broad

public access to a wide range of historical and cultural documents as a contribution to education

and lifelong learning.

The Library of Congress presents these documents as part of the record of the past. These primary

historical documents reflect the attitudes, perspectives, and beliefs of different times. The Library of

Congress does not endorse the views expressed in these collections, which may contain materials

offensive to some readers.

M a r k e t i n g p l a n

.

Page 11

5.3 Documentary

Just exactly how Corporations treat people, especially those in the third world. In this feature length

documentary, directors German Gutierrez and Carmen Garcia present a searing indictment of the

Coca-Cola Empire and its alleged kidnapping, torture and murder of union leaders trying to improve

working conditions in Colombia, Guatemala and Turkey.

The filmmakers follow labour rights lawyers Daniel Koala and Terry Collingsworth and an activist for

the Stop Killer-Coke! campaign, Ray Rogers, as they attempt to hold the giant U.S. multinational

beverage company accountable in this legal and human rights battle.

Many union leaders at Coca-Cola's Colombian bottling plants have been murdered. Hundreds of

other Coke workers have been tortured, kidnapped and/or illegally detained by violent

paramilitaries, often working closely with plant managements.

5.4 Budget

Coca-Cola's Commitment to Advertising Spending

Due to the nature of the Industry, Coca-Cola has made a yearly commitment to large ad spends,

spending a total $3.499 billion in 2014, $3.266 billion in 2013 and $3.342 billion in 2012.

Coca-Cola's advertising spend accounted for 6.9% in total revenue for each year from 2012 to 2014.

At the end of the year in 2014, Coca-Cola was the largest advertiser in the beverage industry.

This large advertising spending has allowed Coca-Cola to gain a competitive advantage in key areas.

Its advertising spending and strategy has helped it successfully introduce new products into the

marketplace, increase brand awareness and brand equity among consumers, increase the

knowledge and education of consumers, and increase overall sales.

6 PLAN B

The human mind is wired to detect patterns. We are very good at it; so good in fact, that we

imagine patterns even when they don’t really exist. This means that we all have the inclination to

validate our beliefs and hypotheses. Researchers call this the confirmation bias, and it is so

prevalent that it makes us overconfident in our beliefs and can lead to denial and bad decision

making. It’s also partially to blame for why we tend to stick to plan A instead of evolving plan B. it

creates an unrealistic devotion to our original strategy. In business, it manifests itself in three ways;

how we collect information; how we interpret information; and how we selectively recall this

information from memory. The confirmation bias is the result, in part, of how information is

gathered and stored in the mind: first in first out. Initial impressions tend to be the most significant,

and they are thoughts we want to defend. We remember later information that’s why some people

find it difficult to overcome childhood traumas and why our earliest influences are often the

greatest. It’s very difficult to change someone’s mind once it’s made up according to Jonathen

M a r k e t i n g p l a n

.

Page 12

Baron, a psychology profession at the University of Pennsylvania ‘his experiments have shown that

initial ideas and information make a much greater impression than subsequent ideas and

information. He says that you’ll naturally form a more positive impression of someone if he or she is

described as ‘’intelligent, industrious, impulsive, critical, stubborn and envious’’ than as ‘’envious,

industrious, impulsive, critical, stubborn and envious and intelligent.’’ Reversing the order of the

description changes the impression we get, leaving a much stronger memory trace. Once we have

the impression, we’ll work to defend its position in the mind, to confirm it.

7 SUMMERY