Marketing group assignment mkt101 topic marketing campaigns of coca cola and proposed solution

From the main product of carbonated drink, now Coca-Cola has diversified products with many models, colors, and flavors such as Fanta, Maaza, Limca, sprite, Thums Up, Minute Maid, NimbuF

Coca Cola -MKT-Gr1 - Coca Cola Marketing Principles (MKT101)

MARKETING GROUP ASSIGNMENT

MKT101 TOPIC: Marketing campaigns of Coca-Cola and proposed solution

GROUP 1 Class: IB1710

Members :

Lý Thu Thảo HS170886 Nguyễn Hồng Ngọc HS171227 Nguyễn Quốc An HS173191 Phạm Thị Thúy Lan HS170832 Trịnh Văn Lâm HS170983 Vương Quý Dương HS170334

II THE MARKETING MIX OF COCA-COLA (4P)

● Overview of the marketing strategy of Coca-Cola

I INTRODUCTION:

a Overview of

The Company is an American multinational beverage corporation, best

known as the producer of Coca-Cola The sugary drink was invented in 1886 by

pharmacist John Stith Pemberton The Coca-Cola Company also manufactures,

sells, and markets other non-alcoholic beverage concentrates and syrups, and

alcoholic beverages

At the time of its invention, the product contained cocaine from coca leaves and

caffeine from kola nuts which together acted as a stimulant The coca and the kola

are the source of the product name, and led to Coca-Cola's promotion as a "healthy

tonic" The company largely produces syrup concentrate, which is then sold to

various bottlers throughout the world

b Position

As a leading company in the field of manufacturing and trading carbonated soft

drinks, despite facing the direct competitors - Pepsi, Coca-Cola still retains its

influence

c Popularity

Coca-cola is a product that anyone knows, even though they have never tried once

in their life, they must have heard of this brand at least 10 times or more About 94%

of the world's population recognizes the red and

white logo of Coca-Cola and "Coca-Cola" is the

second most widely understood word in the US,

just behind the word "OK" Because it is the first

carbonated beverage brand and the earliest to the market, reaching the youngest

customer group, Coca-Cola's coverage in Vietnam and international markets is

extremely large

II THE MARKETING MIX (4P)

4P is considered an effective marketing tool

for expanding the market and promoting the

brand For every business, the 4P strategy is

the "magic wand" that helps businesses

create and maintain revenue streams The

more successful the 4P strategy, the more

strength of the business is consolidated in the market

● Overview of the marketing strategy of Coca Cola

- Focus on key markets, not invest in a spread and mass manner

- Focus on building advertising strategies, and improving products to enhance theirposition and reputation in the traditional market

- Huge investment in quality advertising contracts to bring a strong impact tocustomers

- Increase product volume, tighten costs, promote investment efficiency and considerthe traditional market as a development goal.

- Constantly competing with competitors in the same industry, especially Pepsi

a Product:

Coca-Cola has created a variety of product

categories throughout the process of

formation and development Currently, the

brand offers more than 500 brands of

carbonated water with more than 3,900

products From the main product of

carbonated drink, now Coca-Cola has

diversified products with many models,

colors, and flavors such as Fanta, Maaza, Limca, sprite, Thums Up, Minute Maid, NimbuFresh, and Nested Ice Tea These are all beverage brands of Coca-Cola in more than 200countries and territories around the world

Some of the famous brands provided by Coca-Cola can be mentioned such as Sprite, Fanta,

Diet Coke, Dasani, Del Valle, Osewalle, Fuze Tea, etc.These product lines all have their own characteristics,creating variety and novelty of species Coca-Cola's coreproducts are mainly in the form of plastic bottles, glass, orcans with a capacity of 200ml - 2l The company hasconstantly researched and developed many new productssuch as Joy bottled water, Samurai energy drink, andSunfill fruit powder, and added many new flavors to traditional products to meet tastes In

2016, Coca launched a sugar-free Coke to compete directly with Pepsi, while responding tothe increasing trend of consumers using low-sugar beverages to avoid obesity andsugar-related diseases are becoming serious

Coca-Cola's packaging is constantly improving to help prolong the product's life cycle inorder to give customers a new, eye-catching, optimistic and convenient feeling when using(Every Tet holiday, Coca-Cola uses the image of a "swallow" to signal the arrival of spring tocreate a good impression on consumers, helping to add value to the product, which is verysuitable for gifts and Tet gifts.)

Overall, in the product strategy, Coca-Cola has expanded its current product portfolio byincreasing the depth of a product line and increasing the number of product lines, positioningproducts suitable for each market

b Prices:

Coca-Cola follows the principle of pricediscrimination 2 This means that the brandwill charge different prices for productsbelonging to different segments EachCoca-Cola brand has a different pricingstrategy This Coca cola marketing strategy

is based on the competitor format of Coca-Cola, in which Pepsi is the biggest directcompetitor of the Coke brand So if Coca-Cola prices its product too high compared to Pepsi

or vice versa in a particular segment, consumers may be converted

Coca-Cola has pursued 3P and 3A pricing strategies to gain an advantage and best servecoca cola's target customers and consumers

● 3P strategy:

Price to value (from price to value): consumers not only have the ability to buy coca cola butalso get the benefits from the product

Pervasiveness: consumers can buy coca-cola everywhere

Preference: make consumers not only love the product but also ensure that Coca is the firstchoice when they look for soft drinks

● Strategy 3A:

Affordability: Coca-Cola's selling price is guaranteed to be suitable for all audiences,anyone can afford it

Availability: consumers must be able to buy Coca-Cola whenever and wherever

Acceptability: Coca-Cola must make customers love and accept the product, feel happywhen using the product

Coca-Cola's differentiating strategy is to reduce theprice when users buy a larger size product In addition tosetting relatively low prices to penetrate the market,Coca-Cola also sets prices at a discount, adjustingprices to reward customers who pay ahead of time andbuy products in bulk In addition, Coca-Cola also uses astrategy of price discrimination by product type

c Places:

Coca-Cola, which has been in business for more than 130 years and operates in more than

200 countries throughout the world, has thus amassed a massive distribution network Theirplace strategy is highlighted by their extensive distribution network The Coca-Cola companymanufactures the beverage using its patented formula and distributes it to bottlers across theworld

The company itself controls the brands and is in charge of consumer brand marketingcampaigns as well as manufacturing and selling concentrates, beverage bases, and syrups

to bottling plants Their bottling partners then manufacture packages, merchandise, anddistribute the finished branded beverages to their vending partners, who finally sell them toconsumers

Its products can be found in practically every retail shop and supermarket Coca-Colaproducts are sold at 2.5 million stores in India Their products are also distributed in a variety

of hotels and restaurants around the world

d Promotion:

Coca-Cola is the gold standard in terms of advertising and branding Coca-Cola’s promotion

strategy focuses on aggressive marketing through adcampaigns using media channels such as television,online commercials, print media, sponsorships, and

so on Coca-Cola sponsors important events such asAmerican Idol, BET Network, NASCAR, NBA, NCAA,Olympic Games, and FIFA World Cup, among others

Coca-Cola also airs commercials on television in a variety of national languages around theworld Coca-Cola started the <Taste the Feeling= campaign in India in March 2016, intending

to remind people of the joy and happiness that Coke delivers to their life Coca-Cola hasevolved into a mass-market product that is expected to be available at any time, anywhere

Many people know Coca-Cola as a beverage companywith the largest amount of consumption in the history ofthe world beverage market

Besides, the Coca-Cola brand is also of

great value thanks to its unabated

popularity over more than a century of

operation According to Interbrand's

annual report, in 2021, Coca Cola ranks

6th in the ranking of the best global

brands The brand's valuation reaches

57 billion US dollars On top of that are

names like Apple, Amazon, Microsoft,

Google, and Samsung

b Coca-Cola's competitive advantage:

Coca-Cola's competitive

advantage lies in its product reach

Present in more than 200 countries

and accounting for 1.9 billion daily

servings of its products, Coca-Cola

has brought more than 500

products to global consumers

Coca-Cola's product diversity is considered to be able to serve all audiences with differentlifestyles, interests, and characteristics Thanks to that, this "all-people" product easilyconquers even the most demanding consumers

A special study on Coca-Cola also shows the competitive advantage of this brand It isCoca-Cola is considered the most emotionally connected brand in America Users associate

a feeling of "happiness" when mentioning Coca-Cola and have high brand loyalty

Besides, Coca-Cola's 136 years old age has also become a competitive advantage of thebrand Many consumers admit that it is difficult to find a substitute for Coca-Cola becausethey love and are so used to the taste of this brand

c Market share dominating the global beverage industry:

The above two strengths are enough to explainthe third strength of Coca-Cola's SWOT model,which is having a dominant market share in theglobal beverage industry In addition toCoca-Cola and Pepsi products, the two leadingnames dominating the beverage market, theCoca-Cola company also has a huge market share for products such as Coke, Sprite, DietCoke, Fanta, etc

This formidable position is maintained not only in some countries but in all countries whereCoca-Cola is present.

d Wide distribution network:

With a dense presence all over the world, Coca-Cola also owns the most widespread andeffective distribution network in the beverage industry

According to statistics, this company has cooperated with 225 bottling partners andapproximately 900 global bottling plants Only this number can explain why Coca-Cola ispresent in almost every "cave and alley"

e Wide market penetration:

The beverage industry is considered a huge market With a potential brand name forCoca-Cola, it is not difficult to penetrate both domestic and foreign markets

Not to mention Coca-Cola's acquisition policy also helps the company easily expand themarket This brand has a long list of acquisitions and brings great profits including the Costacoffee chain, Fuze Tea, …

2 Coca-Cola's Weakness

a Competing with Pepsi:

The eternal story of the war between Coca-Cola and Pepsi probably never came to an end.Because Coca-Cola and Pepsi have so many similarities, the competition between the twobrands cannot be reduced

No one can deny that Pepsi is Coca-Cola's biggest competitor Without a rival, Pepsi,perhaps Coca-Cola would have reached a dominant position in the entire beverage market.Although overall, Pepsi can not compare with Coca-Cola, this obstacle will become the firstweakness for the brand that has been operating for 3 centuries.

b Product diversification:

You may find it questionable whendiversifying the product portfoliothat is both in the strengths andimmediately "squeezing" into thelist of Coca-Cola's weaknesses.Because product diversification iscompletely a double-edged sword,both bringing advantages anddifficulties for Coca-Cola

Specifically, Coca-Cola is currently only stopping at diversifying products in the beveragesegment With many beverage categories, Coca-Cola holds the leading position that is hard

to beat in this "playground" However, this level of diversification remains low The reason

lies in the fact that Pepsi has "encroached" on the snack market share when developingLays or Kurkure and Coca-Cola is still struggling to come up with a clear position for itself.

c Depends on the beverage market:

Given the low product diversity, the next weak point in Coca-Cola's SWOT matrix is itsover-reliance on the beverage market Focusing on only one market helps Coca-Cola'sbeverage products always be invested and meet the needs of all customers However, thisalso makes Coca-Cola lag in other product lines that the brand has the ambition to invest in.Despite investing in the snack market, almost no one knows that names like Plazma,Wellness, Bambi Biscuits, etc are also produced by the famous Coca-Cola

d Foreign exchange rate risk:

Foreign exchange rate risk is one of the weaknesses that most multinational companies,with a large market share globally, will face

Similarly, in the SWOT model of

Coca-Cola in Vietnam, it is completely

exposed to this type of risk if it is

affected by adverse fluctuations in

foreign exchange rates These

fluctuations will reduce the revenue

and profit of the business

With Coca-Cola, a possible scenario due to foreign exchange rate risk is to buy rawmaterials for production and business to pay in foreign currency or sell products and collectmoney in foreign currency These are both possible scenarios because with a scale

spanning more than 200 countries, paying merchants and retrieving a currency other thanthe one in the home country will increase exchange rate sensitivity At this time, the capitalspent to produce or the price of the product fluctuates in an unprofitable direction, which willbecome a weakness for the brand.

e Health-related issues

Soft drinks in general often cause consumers to have health concerns Coca-Cola is noexception when most of its products are high in sugar When too much sugar is tolerated inthe body, consumers can experience serious problems such as obesity and diabetes

Many health experts have banned the use of soft drinks and the daily effect of Coca-Cola issignificantly affected However, the brand has yet to offer any reasonable alternatives

Besides direct agents, Coca-Cola also has weaknesses in terms of indirect factors affectinghuman health As in the 2020 Tearfund report, Coca-Cola is one of four brands that arecontributing to global warming and carbon emissions by producing more plastic bottles.Although the brand is trying to urge users to reuse these plastic bottles, the actual effect hasnot yet achieved the desired improvement

3 Coca-Cola's Opportunity

a Product diversification:

In order to grow and expand faster to keep

pace with the market, Pepsi had to

constantly expand its product portfolio to be

more diversified Although Coca-Cola's

market share is vast, the level of

diversification is still modest Therefore, in

addition to beverages, Coca-cola may consider shifting to other markets such as snacks …

b Focus on healthy drinks, instead of soft drinks:

Coca-Cola's weakness is its dependence on the production of unhealthy sugary drinks Butthe opportunity for Coca-Cola also lies in developing a line of healthy drinks