Integrated Strategic Marketing
Plan: Section Four
Jessica
Grimminger
Zachary
Martin
Erin
McIver
Russell
Rowan
Ryan
Village
Current Consumer Characteristics
Coca-cola is a globally
recognized brand that reaches a variety of consumer types. Because
Coca-cola focuses on marketing convenience products, which are products that
are inexpensive, readily available, and provide minimal differentiation between
similar offerings, they appeal to a wide swath of consumers. Described in
the article titled “Marketing Strategy of Coca-Cola” by Hitesh Bhasin, he
clearly defines Coca-cola consumer characteristics “Coca cola targets a mass market. And the
customer expectation is low price, great taste, convenience & accessibility
and various options to choose from” (Bhasin A, para. 30, 2017). Further, in
another article by Bhasin titled “Mass Market” he details that reaching mass
markets are one of the core strategies of companies like Coca-cola that appeal
to all consumer types “A mass market is a general population which can be
targeted at wide for the sales and marketing of a product (Bhasin B, para. 1,
2017). Essentially, due to the nature of Coca-cola products, Coca-cola
consumers can be defined as the general population and their characteristics
include an expectation of global availability, streamlined offerings (meaning
that products do not change based on geographic location), and low prices.
Additionally, with the recent shift in consumer preferences in both the
food and beverage industries relating to healthier products, there is an
expectation that Coca-cola should offer alternative options. In response
to this new characteristic of consumers, Coca-cola has started to produce
sparkling waters and reduced calorie drinks to meet this demand. All in
all, current consumer characteristics are in-line with the convenience product
Coca-cola offers and the mass market they serve (Bhasin B, 2017).
Demographics
Touched on previously, Coca-Cola appeals to a
vast number of consumers in many global markets. Specifically, in the
United States, the article titled “Coca-Cola Consumer Insights” articulates the
common Coca-Cola consumer “A Coca-Cola consumer is generally median income,
Caucasian, and senior age. Coca-Cola consumers are more likely to purchase
Coca-Cola during larger pantry stocking trips” (“Coca-Cola Consumer Insights,”
para. 1, n.d.). In fact, a graphical representation found in this article
provides a top-level view of Coca-cola demographics.
From this data, we can
determine that consumers range from all levels of income, with a majority
falling into the $60k - $80k range. Additionally, it was interesting to
find that men purchase Coca-Cola products at a much higher rate than women.
However, due to the fact that Coca-Cola products are low priced and
readily available in many different channels (gas stations, grocery stores,
etc.) they appeal to all demographic types. This information highlights
that Coca-Cola, as a brand, is far-reaching (“Coca-Cola Consumer Insights,”
n.d.).
Physiographic
Coca-Cola is a global
brand and the only 2 countries in the world that do not sell it are North Korea
and Cuba. (BBC, n.d.) The country that drinks the most is Mexico, then the United
States followed by Canada. The lowest 2 countries are China and India and this
is where Coca-Cola is looking to expand. (Franklin, n.d.) Coca-Cola sales have been
declining in North America and Europe, but have been increasing in Asia.
(Coca-Cola sales decline in key countries, n.d.) North American and European
countries are looking for healthier alternatives, which is why Coca-Cola Life is
headed to these market places.
Stakeholder’s
Characteristics
·
Bottling
Partners – group meetings to plan future strategic plans. Top senior to top
senior communication and Global environmental council. (Stakeholder Engagement, n.d.)
This group has a lower influence of Coke, but they have a high interest.
Coca-Cola “CC” keeps these companies working by selling large amounts of CC
products.
·
Consumers
– Focus groups, surveys, research, plant tours and websites. (Stakeholder
Engagement, n.d.) This group has high influence on CC because
they buy the products and are the data CC uses to sell products.
·
Customers
– Social media engagement, surveys, account teams, joint business planning.
(Stakeholder Engagement, n.d.) They have a high influence on CC because they
are the ones who buy the products. The health-conscious customer is whom CC is
trying to capture with Coke Life.
·
Employees
– town hall meetings, employee communications, health and safety programs,
employee well-being projects and individual development plans. (Stakeholder
Engagement, n.d.) Employees should be considered high influence
and high interest. However, this may not be the case for all employees.
·
Governments
and regulatory authorities – Chambers of commerce, foreign investment councils
and recycling and recovery initiatives. (Stakeholder Engagement, n.d.)
High interest and high influence, they can make or break CC if they wanted to.
Nothing gets done with such a large company like CC without government interference.
·
Shareowners
and analysts – Annual shareholder meetings, earnings reports and other investor
presentations. (Stakeholder Engagement, n.d.) High interest and high
influence, these people have invested money into CC and they want the company
to succeed.
·
Suppliers
– Annual supplier meetings, supplier guideline principles and packaging
associations. (Stakeholder Engagement, n.d.) High interest and low
influence, the supplier companies need CC to succeed, but they do not have
total influence over CC, but could if they voiced it.
·
Golden
Triangle approach is a business practice Coca-Cola uses. The approach involves
engaging public, private and civil society sectors to create a collective
business partnership. Coca-Cola works with these 3 groups for business, and
believes working together is better than working in isolation. Coca-Cola can
have sustainable business growth, environmental stewardship and social programs
using the Golden Triangle approach. (Stakeholder Engagement, n.d.)
Primary
The Coca-Cola Company has three primary stakeholders: Customers,
Employees, and Shareholders. To drive engagement with these key stakeholders,
the Coca-Cola Company utilizes different formal and informal methods. These
methods allow for development of strategies to ensure stakeholder’s objectives
are met.
Coca-Cola customers want great value for their money. To facilitate
engagement with these stakeholders, Coca- Cola uses joint business planning,
joint value creation initiatives, customer care centers, research and
development teams, surveys and social media platforms. Methods used for
employees are training and development programs to help with employee
advancement. Other methods uses for engagement include engagement surveys, town
hall meetings, employee communications, individual development plans, community
and employee well-being projects, and senior executive business updates.
Lastly, the objects of the Shareholders are the organization's strategies to
maximize wealth and company growth. The Coca-Cola Company has been able to meet
these objectives throughout the years as it is currently selling its products
in over 200 countries. The responsibility of meeting these objects have been
accomplished through engagement such as annual Shareholders meetings, quarterly
earnings reports, quarterly Shareholder newsletter, and dialogues with
investors and analysts.
Secondary
Stakeholders
While primary
stakeholders have a direct interest in a company, secondary stakeholders have
an indirect interest (Gomez, 2017). However, secondary stakeholders could also
be primary stakeholders because local workers might live in the communities
(Gomez, 2017). The Coca-Cola Company’s secondary stakeholders are the residents
who live in the areas surrounding the Coca-Cola factories or bottling plants.
The secondary
stakeholder residents have an indirect interest in the company because of how
it could affect the surrounding environment and workforce. There are 900 manufacturing
and bottling facilities worldwide, and some of them are still in developing
countries (Journey Staff, 2012). For example, Coca-Cola bottling subsidiaries
in India have had a dismal track record with pollution and excessive water
usage, and as a result one plant was shut down and one potential plant was
denied land to build (Ethical Consumer Research Association, 2017). In many of
the other communities with a plant or factory, Coca-Cola is a force for good by
providing jobs, but it is still important that the company realize these
problems and attempt to correct them in order to win back these secondary
stakeholders.
Proposed
Primary Target Audience
Coca Cola does not target
to a specific segment, but adapts its marketing strategy by developing new
products (Bhasin A, 2017). Coca-Cola focuses most of their marketing strategies
towards the younger generations. The primary target audience for Coca-Cola
products is geared towards consumers who are between 13-24 years of age. Half
of Americans aged 18 to 34 say they drink regular soda. This age demographic
and men in general are also slightly more likely to consume soda than their
counterparts (Brandon Gaille, 2015). Coca Cola has designed their products to
satisfy their various consumer’s needs. By doing so, the company can provide
drinks for many different target markets: ages, sexes, etc. In a world where
people are trying to live healthier lives, Coca Cola recognized this need, and
has begun to produce different beverages that are satisfying to these consumers
as well.
Proposed
Secondary Target Audience
The secondary target
audience Coca Cola focuses on are adults 40 years of age and up. For example,
Diet Coca Cola targets adults, between 30-50 who are health conscious, but still
looking for a great taste (The Coca-Cola Company, 2016). This is a great
product for older people looking to lower their sugar intake, but still enjoy
the great taste of Coca Cola. Seeing that Coca Cola caters their products to
all demographics, data for their secondary target audience is limited. This
shows how much power and control Coca Cola has in the market, but also shows
that they can create products for everyone simply by understanding their
consumers wants and needs.
References
BBC. (n.d.). Who, What, Why: In which countries
is Coca-Cola not sold? From BBC: http://www.bbc.com/news/magazine-19550067
Bhasin (A), H. (2017, April 14). Marketing strategy of Coca cola – Coca cola marketing strategy. Retrieved from Marketing 91: http://www.marketing91.com/marketing-strategy-of-coca-cola/
Bhasin (B), H. (2017, April 14). Mass Market. Retrieved April 24, 2017, from http://www.marketing91.com/mass-market/
Bhasin (B), H. (2017, April 14). Mass Market. Retrieved April 24, 2017, from http://www.marketing91.com/mass-market/
Brandon
Gaille. (2015, March 13). 39 Interesting Coca Cola Demographics. Retrieved from
Brandon Gaille: http://brandongaille.com/39-interesting-coca-cola-demographics/
Coca-Cola Consumer Insights. (n.d.). Retrieved
April 24, 2017, from http://infoscout.co/brand/cocacola?ab=b&utm_expid=75303912-24.l6L7NHOEQze-M9P-hvusJw.1&utm_referrer=https%3A%2F%2Fwww.google.com%2F
Coca-Cola sales decline in key countries.
(n.d.). From Capital Press: http://www.capitalpress.com/Business/20160420/coca-cola-sales-decline-in-key-countries
Coca Cola Stakeholder Report. (2015, March 23).
Retrieved April 24, 2017, from
https://www.ukessays.com/essays/economics/coca-cola-stakeholder-report-economics-essay.php
Ethical Consumer Research Association. (2017).
The Coca-Cola Company- Pollution & Toxics. Retrieved from
http://www.ethicalconsumer.org/companystories.aspx?CompanyId=13247&CategoryId=288190
Franklin, M. (n.d.). Which Country Drinks the
Most Coca-Cola? From The Daily Mail:
http://www.thedailymeal.com/which-country-drinks-most-coca-cola
Gomez, C. (2017). Why Are Secondary Stakeholders
Important to a Company? Retrieved from
http://smallbusiness.chron.com/secondary-stakeholders-important-company-23877.html
Journey Staff. (2012). Offices & Bottling
Plants. Retrieved from
http://www.coca-colacompany.com/stories/offices-bottling-plants
Stakeholder Engagement. (2015, July 23).
Retrieved April 24, 2017, from
http://www.coca-colacompany.com/stories/stakeholder-engagement
Stakeholder Engagement. (n.d.). From The
Coca-Cola Company: https://hbr.org/2007/11/a-leaders-five-key-stakeholder
The Coca-Cola Company. (2016, September 20).
Responsible Marketing. Retrieved from Coca Cola:
http://www.coca-colacompany.com/stories/responsible-marketing
