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1、MarketingPlanandResearchReportofCoca-ColaTableofContentExecutivesummary2Externalenvironmentanalysis2Marketstrategy6Marketingresearchresult6Marketingmixsummary7Detailedstrategyforpromotion9Controls11Referencelist13ExecutivesummaryTheCoca-ColaCompany(“Coca-Cola”)wasfoundedin1886whichisrankednumberonei
2、nthebeverageindustry.Thecompanymanagesmorethan500nonalcoholicbeveragebrands,andfourofthetopfivenonalcoholicsparklingbeveragebrandsareownedbyCoca-Cola.Accordingtoits2012annualreport,thewholegroupnetoperatingrevenueamountedto48.02billionUSD(TheCoca-ColaCompanyAnnualReview,2012).Inaddition,Coca-Colaacc
3、ountsforapproximately37.1%ofallthesoftdrinkmarket,followedbyPepsiCoatabout30.2%,andDr.PepperSnappleGroupat21.4%(Faber,2012SoftDrinkMarketSharein2012Other11%Coca-ColaPepsi37%30%Dr.PepperSnappleGroup22%IntheIong-standingviewpoint,Coca-Colahasaninclinationtoexpanditsmarketshareto50%anditssalesrevenueto
4、500billionUSDinthe2015(Hofstede,2012).Althoughitsprosperousstatusquo,thecompanyisalsofacingagainstanintensifiedcompetition.ThisreportisaimedatanalyzingtheoverallmarketingstrategyofCoca-Colatofindoutthepotentialvulnerabilities.Then,basedupontheanalysisandin-depthresearch,itwilloutlinethestrategicplan
5、forthefutureinordertofurtherenhanceCoca-Colamarketingstatus.ExternalenvironmentanalysisAwell-roundedanalysisofcompanysenvironmentwillbebeneficialforthecomprehensiveunderstandingofthesituation.First,itisbettertoresearchCocaColaexternalsituationwhichincludesthreeparts:macro-environmentalfactors,micro-
6、environmentalfactorsandcompetitivestrategy.Forthemacroaspect,thisreportutilizesPESTmodelwhichexaminesthechangesinamarketplacecausedbyPolitics,Economy,SocialandTechnologicalfactors.PoliticalAnalysisShiftsofgovernmentsattitudetowardsthe-fionrveeisgtnedenterprisemayposeathreattothecompany.Especiallyint
7、heemergingcountries,thepoliticalstabilityisessentialtoasuccessfulbusiness.Inaddition,changesoflawsandregulations,includingnon-alcoholicdrinksregulationshouldbeconsidered.EconomicAnalysisAccordingtoIMF,whiletherehavebeensomeencouragingsignsofeconomicrecovery,theglobaleconomicgrowthseemstobelosingmome
8、ntum.Inotherwords,thecompanystillneedstobevigilanttotheoutsideworldandtheemergingeconomytoseizeopportunities.AccordingtotheStandardandPoorsIndustrysurveys,Formajorsoftdrinkcompanies,therehasbeeneconomicimprovementinmanymajorinternationalmarkets,suchasJapan,Brazil,andGermany.Thesemarketswillcontinuet
9、oplayamajorroleinthesuccessandstablegrowthforamajorityofthenon-alcoholicbeverageindustry.SocialAnalysisLivingahealthierlifestyleissoprevalentallaroundworldthathasaffectedthenonalcoholicbeverageindustryassomeconsumersareswitchingtobottledwateranddietcolasinsteadofbeerandotheralcoholicbeverages.Thisco
10、ntinuedtendencywillimpactthenon-alcoholicbeverageindustrybyincreasingthedemandoverallandinthehealthierbeverages.TechnologicalAnalysisTherapidadvancementofscienceandtechnologymaydeeplyimpactCoca-Colaaswell.Forexample,noveldistributionchannel,diversifiedpromotioncampaignandnewproductionlineetc.Interms
11、ofmicro-environmentalfactors,itisadvisabletousePortersFiveForcesmodeltoanalyzethemarketcondition.ThreatofIntensityofnewentrantsThreatofBargainingsubstitutepowerofproductssupplierscompetitiverivalryBargainingpowerofcustomersThreatofnewentrantsComparedwithotherindustry,softdrinksindustryhasarelatively
12、highergrossprofitrateandlowerbarrierstoentry,accordingly,theredoexistmanypotentialentrants.ThreatofsubstituteproductsAsismentionedabove,healthierdrinkinghasbeenanewtrendfortheconsumers.So,enoughattentionmustbepaidtothesubstituteproductssuchasteadrinks,bottledwaterandsportsdrinks.Bargainingpowerofcus
13、tomerWiththousandskindsofnon-alcoholicbeverageinthemarket,consumershaveawiderangeofoptions.Additionally,theyarealsobecomingsensitivetopricewhichrenderthemtohavemorebargainingpower.BargainingpowerofsuppliersAstheleadingcompanyinthemarket,Coca-Colastaysstrongtothesupplierswhoarewillingtocollaboratewit
14、hsuchagiantenterprise.Inotherwords,bargainingpowerofsuppliersiscomparativelyweak.IntensityofcompetitiverivalryRelieduponitssalesanddistributionchannels,Coca-Colahasundoubtedlyestablishedamaturemarketingnetwork.Butwhatcanbeignoredisthethreatsposedbycompaniesoutofcarbonatedbeverage,theyallsparenoeffor
15、ttogainmarketshareintherelevantindustry.Aftertheanalysisoftheabovetwofactors,keepingalertandfurtherdevelopingthecorecompetencyareextremelysignificanttoCoca-Cola.Thus,howwillthecompanycompetewiththemajorplayersinthemarket?CompetitiveAdvantageLowerCostDifferentiationCostLeadershipDifferentiation_7Comp
16、etitiveScopeDifferentiationFocusCostFocusNarrowk_)BroadAscanbeseeninthechart,thecompanyuseddifferentiationandcostleadershiptactics.Differentiationisachievedthroughsuperbqualityofitsproduct,whichsurpassesthecompanysmajorrivalsinthebrandimageandhighcustomerrecognition.Whatsmore,itspromotioncampaignand
17、packagingstrategyalsodifferentiateCoca-Colafromcompetitors,forinstanee,itsuniquebottledesignhasbecomeaworldfamoussymbol.Thepositioningofcostleadershipisachievednotonlythrougheconomiesofscaleinresearch,developmentandpromotion,butalsothroughlearning,knowledgeandexperieneeinproductionandoperationalproc
18、esses.Furthermore,thecompanyefficientdistributennetworksandmanufacturingsystemscontributesignificantlytoitscostsaving.MarketstrategyBasedontheaboveanalysis,thisreportresearchestheinteriorpartofCoca-Colatodetermineitsmarketingandfinancialobjectives,segmentation,positioning,andtargetmarket(s)inthefutu
19、re.FuturegrowthforCoca-Colawillbeembodiedintwomainareas:globalemergingmarkethealthdrinks.BesidesUnitedStatesCoca-Colawillcontinuetomarkettocountriesaroundtheworld.ThecompanyhasanimpressiveperformaneeinemergingmarketslikeLatinAmerica,theBRIC,andWesternEuropewhichwillbetheirmajorfocusinthefutureforthi
20、siswheremajorgrowthopportunitieslie.Inaddition,consumersaremovingtowardsahealthierlifestyle,whichaccordinglyiscausingCoca-Colatoexpandproductlinetosatisfytheirneeds.ThisnewmarketishugeandcreatesalotofgrowthopportunityforCoca-Cola.Morespecifically,Coca-Colaintendstoincreaseitscurrentmarketshareinthes
21、oftdrinkto50%intheendof2015(Hofstede,2012),inparticular,itwillinvestheavilyinthehealthdrinkproducttograbthisdevelopingclichemarketandtocaterforconsumersaptitude.Then,thewholegroupwillachieve50billionUSDsalesrevenueand13billionUSDprofitmargin(Marcial,2007).MarketingresearchresultTostaycompetitive,Coc
22、a-Colahasdonewellinunderstandingandsatisfyingconsumers.Ithavebeenfoundthatcustomersexpectmorefromtheirbeverages.TofillthisdesireCoca-ColahasdevelopedtheBeverageInstituteforHealthandWellness.Thisinstitutedevelopsnewproductideasthatcancontributetotheirproductline.Inaddition,Coca-Colaiscapableofmaintai
23、ningtheirmarketvitality,sotheycontinuetodoresearchthatwillbenefittheirconsumers,aswellasbeingprofitableforthecompany.Apartfromflavordiversification,profitabilityincertainregionhasalsobeenamajorconsideration.Forinstanee,CokeZeroisaproductthatcarriesnocarbohydratesorcaloriesandwasnotquitemeetingtheexp
24、ectedprofitsintheUnitedStates,butCocaColastartedtoadvertiseitmoreinEuropetoareasthattoenjoyit.Thisregionseemedmoreconcernedabouttheirhealthandwell-being,whichcontributedtoCokeZerobecomingmoreofaprofitableproduct.SpecialmarketingtechniquessuchasB2Bstrategiesarealsousedtomaketheirproductsmoreattractiv
25、etotheyoungpeople.Forexample,Coca-ColaunitedwithiTunes,sothatwheneversomeonepurchasedaCoca-Colaproducttheywouldreceivefreesongstopromotebothproducts(Fuhrman,2007).Eventhough,Coca-Colaisconfrontingwithanumberofchallengesinthedaystocome.Themoststrikingoneisthatthebeverageindustryismovingtowardahealthc
26、onsciousconsumer.“InmanyEuropeancountries,theincreasingconsumertrendtowardahealthierlifestylecontinuestogrowdemandforfunctionalbeveragesthatofferphysicalormentalwell-being,lowercaloriesandotheraddedvalues”(Fuhrman,2007).Consumersvalueproductsthataregoingtohelpthemliveahealthylifestyleandfeelbetterbo
27、thphysicallyandmentally.Coca-Colahastoreconsideritsexistingproduct,pricing,distributionchannelandpromotionstrategytobetteradaptitselftotheever-changingatmosphere.Inordertoformulateawell-roundedmarketstrategyforCoca-Cola,thisreportcarefullyestablishestherelevanttacticswhichareinlinewiththeanalysisand
28、datacollected.Itisrecommendedtouse4Pwhichconsistsofproduct,place,price,promotiontoanalyzethespecificdetailsinthenextpart.MarketingmixsummaryInthisreport,4PmodelisutilizedtoillustrateCoca-Colasmarketingmix,i.e.prplace,price,promotion.ItemDetailsProductCoca-Colahasahugeproductmixwhichcontainsabout400b
29、rands,includingdietandlightbeverages,waters,juiceandjuicedrinks,teas,coffees,energy,andsportsdrinks(Coca-ColaCompany,2012).Toattractnewconsumersandmarkets,productlinemustbeextended,especiallyinthehealthdrinkproductliketea,juiceandsportsdrinketc.Inaddition,propermodificationforthecurrentproductisalso
30、neededtomaintainthecurrentconsumers.PriceWiththecarefulconsiderationofconsumerspriceelasticity,thepricesoftheCoca-ColasCompaniesproductsvaryaccordingtothebrandandthesizeinwhichtheycomein(Coca-ColaCompany,2012).Differentregionhasdifferedprefereneeandsensitivitytoprice.Thedistributorsandretailstoresth
31、attheCoca-ColaCompanydealswithshouldimplementtheirownpricingstrategytogainthebestprofitmarginwithinanacceptedsalesvolume.PromotionTherearefourmajorpartsofthepromotionalmixthatintegratetogethertocreateacompetitiveadvantageforanorganizationincludingadvertising,publicrelations,salespromotion,andpersona
32、lselling.Ads:Coca-Colahasinvestedheavilyonadvertising.Themainpurposeofadsaremaintainingofbrandsawareness.Then,theadsinthefutureshouldfocusonhealthconsciousandenvironmentallyfriendlytocaterfortheexistingtrend.Publicrelation:ProductplacementsandsponsorshipsarefrequentlyusedbyCoca-Cola(Marcial,2007).Po
33、sitivespokespersontoappealtotheyoungergenerationisanothereffectivetooltopublicize(Truini,2007)Personalselling:PersonalsellingintheCoca-ColaCompanyoftenisdoneinabusiness-to-businessfashion.Thiscanbeusedinbigbusinessallianeetosatisfyconsumersdiversifiedneeds.Salespromotion:couponsandrebatescanbeoftenu
34、sedbecausetheyaremorelikelytoinflueneecustomersbuyingdecision.AnothertypeofsalespromotionthattheCoca-ColaCompanyiscurrentlyusingistheircokerewardspointspromotion.PlaceCoca-ColaCompanyalsousesintensivedistributionstrategiestomakesuretheirproductscanbeavailableeverywhere.Moreover,automaticvendingmachi
35、nesareeffectivetoextenddistributennetwork.Tocopewiththechangingdietconception,Coca-ColashouldfocusmoreonCoca-ColaDietCokeandCokeZerosales,especiallyinLatinAmerica,theBRIC,andWesternEurope(Fuhrman,2007).DetailedstrategyforpromotionOnlywithsuperiorproduct,efficientdistributionnetworkandsufficientinven
36、toryisfarfromasuccessfulbusiness.Promotionisthekeyelementofthemarketingmixdesignedtobuildausefulchannelwiththemarketplaceandtopersuadethecustomersbuyingdecision.Thepromotionalmixisthecombinationofpersonalselling,advertising,salespromotionandpublicrelationsthatitusesinitsmarketingplan.AdvertisingTheC
37、oca-Colasinnovativeadsaeetremelyimpressivetoconsumers.So,nextstep,whatthecompanyshoulddoiskeepthisuniqueadvantageandfocusmuchmoreonthelocalizationwithrespecttodifferentculturebackground.Thiscanbecontributabletodeveloptheemergingmarket.PublicrelationSponsorshipinthesportareahasbeensuccessfulinthelast
38、fewdecadesandleftapositivebrandimage.Tocomplywiththehealthytrend,Coca-Colaneedstoinvestmoreinpublicbenefitactivities,forinstanee,givingsponsorHopePrimarySchool,makingcontributionstomedicaltreatmentcause.Theseactivitymayestablishapositiveimageinallkindsofpeople.Personalselling&salespromotionThenegati
39、veimplicationofseveralmediahasexertedarelativelyprofoundimpactuponcarbonatedbeverage.Accordingly,juice,teaandsportsdrinksshouldbethemainproductsforpromotions.Thecompanycanimprovehealthdrinkmarketsharebyusingmorepersonalsellingboothandmoresalesdiscountorlotterycoupon.Theseactivitiesareeffectiveforget
40、tingpeoplesshort-termattention.SurveyexperimentintheFenwicksdepartmentstorealsoprovedtheaboveanalysis.InthesurveyofconsumersattitudestowardshealthconsiderationwhenpurchasingHealthStronglyaqeeHealthdrinks,morethan45%agreewiththeviewpoints(asisshowninthebarchartbelow).Inaddition,whenaskedaboutfamiliar
41、ity,50%agreewiththatitplaysamajorroleinpurchasingdecision.FamiliarStronglyhladsraieiyDisaqre*NeitherAgreeuocersielystionglysgreediareedts-agreeagreeFdmiliarControlsImplementationImplementationistheprocessonhowwellthebusinessmixesitspeople,organizationalstructureandcompanycultureintoacohesiveprogramt
42、hatsupportsthemarketingplan(Clark,2005).Coca-Colashouldimplementseveralmajortransformations.First,productioncapabilityneedtobemodifiedtomeetthequotademanded.Itmustalsobecosteffectivetoavoidinventorystockswastes.Themarketingteamshouldbeawareofknowledgeablemanagementabouttheproduct.Thestylesandtypesof
43、promotionmustbeappealingtotargetcustomerstoobtainthepotentialamountofexposurefortheproduct.Anotherthingisefficientdistributionnetwork.Thepertinentissueistakencareofwithexpedienttransportationroutestocommercialareasandtraffic.MonitoringAndControllingMonitoringandcontrollingallowsCoca-Colatotakethenec
44、essaryactionstomeetthemarketinggoals.TherearethreemethodsCoca-Colamayusetomonitorthemarketingscheme.SalesAnalysisThesalesanalysisanalyzessalesrevenuebymarketsegmentationtodiscoveradvantagesanddisadvantagesinthedifferentregions.SellersofCoca-Colaproductsvaryfrombigretailsupermarketstosmallcornerstore
45、s.Thistoolgivestheproductsmaximumexposuretocustomersattheirconvenience.MarketShareAnalysisThisapproachisacomparisontothemajorrivalsintherelevantmarket.WiththeshiftsCoca-Colaiscurrentlyundergoing,theyaimtogetanaggressivepositiontostableitsstrongpower.Targetmarketvariousagegroupsandlifestylesfromhighschoolstudentstoouniversities,andmaleorfemale.MarketingProfitabilityAnalysisThismethodtakesthecostfactorintoconsiderationwhichdeemprofitabilityasakeyindex.Threeratioscanbeusedforsupervisingmarketingprofitability;theyaremarketresearchtosales,advertisingtosalesandsalesrepresenta
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