Integrated Strategic Marketing Plan: Section 1
2B. Product Classification
Coca-Cola’s product classification can be described as a beverage product. They offer a wide variety of options within this category including soda, juice, tea, coffee, sparkling and purified water, energy drinks, and sports drinks. Popular brands held by the Coca-Cola corporation include Coke, Sprite, Fanta, Dasani, Powerade, Fuze, Vitaminwater, and Minute Maid. These exclusive companies work together to make up an entire portfolio dedicated to offering products within every subcategory of the beverage industry. Coca-Cola will continue to be classified as a beverage company moving forward as they are committed to this segment of the global economy (“Who We Are,” n.d.).
2C. Product Characteristic
Product characteristics are influential in the development of the marketing strategy because they help determine differentiation within the market. Coca-Cola’s core products are packaged in aluminum cans or plastic bottles with a variety of size options. Soft drinks are popularly sold in 12 oz. cans, 20 oz. bottles, or 2 liter bottles with varying sizes in between. As far as caloric content is concerned, a 12 oz. can of regular Coke has 140 calories, 45 mg of sodium, 39 g of total carbohydrates, 39 g of sugar, and 34 mg of caffeine. Ingredients include carbonated water, high fructose corn syrup, caramel color, phosphoric acid, natural flavoring, and caffeine. Additionally, Coca-Cola makes it a point to notify consumers that ingredients are sourced from GMO crops. These soft drinks follow a consistent pattern for ingredients and packaging with slight changes depending on flavor changes. The other products such as water, coffee, tea, and lemonade include product characteristics with different ingredients, but packaging similar to soft drinks. The only other product characteristic changes, again, include color and design to distinguish different brand and flavor type. These products characteristics define the types of products offered in the beverage market by the Coca-Cola corporation (“Coca-Cola,” n.d.).
References
Coca-Cola. (n.d.). Retrieved May 10, 2017, from
http://www.coca-colaproductfacts.com/en/coca-cola-products/coca-cola/
Who We Are. (n.d.). Retrieved May 10, 2017, from
http://www.coca-colacompany.com/careers/who-we-are-infographi
Integrated Strategic Marketing Plan: Section 2
1D. Key People
Coca-Cola employs over 700,000 individuals from around the world in order to operate one of the most successful global brands. The leader of this company, Muhtar Kent, is Chairman of the Board and CEO of Coca-Cola. Kent started with Coca-Cola in 1978 and worked his way to the top of the organization when he assumed his current position eight years ago. His commitment to the improvement of the global business community is evidenced by active participation in a variety of political, educational, and business boards around the world. James Quincey is President and COO of the Coca-Cola corporation. According to Coca-Cola’s official website, he plays a vital part in the organization “In this role he has responsibility for all of the company's operating units worldwide” (“Our Company,” para. 1, n.d.). Quincey has a variety of strategic business experience due to previous high level operational roles. Marcos de Quinto serves as Executive Vice President and Chief Marketing Officer (CMO) of the Coca-Cola Company. Similar to Kent, De Quinto has been with the organization since 1982 and is responsible for developing global marketing strategies. These three key individuals head the organization and establish the direction of Coca-Cola Company (“Our Company,” n.d.).
1E. Location and Subsidiaries
According to Coca-Cola’s main website, the company was founded in 1886 in Atlanta, Georgia by John Pemberton and remains the corporate headquarters today (“Who We Are,” n.d.). Coca-Cola services over 200 countries in regions including Asia Pacific, Europe, the Middle East, Africa, Latin America, and North America. Essentially, Coca-Cola can be found in any part of the world due to their extensive distribution network and recognizable brand. As far as subsidiaries are concerned, Coca-Cola holds a variety of stake in many other companies. In the article “The Top 5 Companies Owned by Coca Cola (KO)” by Nathan Buehler, he explains that Coca-Cola subsidiaries include Monster Energy, FUZE, Vitaminwater, Minute Maid, and the Bottlers Investment Group. As a result, these companies have benefitted from the huge network created by Coca-Cola in order to be provided in stores, gas stations, and vending machines globally. These subsidiaries combined with the vast location network developed by Coca-Cola is one of the main factors contributing to their sustained success (“Who We Are,” n.d.).
1F. Brands, Major Products, and Services
Coca-Cola has an impressive list of brands and products that are recognized both nationally and overseas. These include brands such as Coke, Sprite, Fanta, Powerade, Mello Yello, and Dasani in addition to the subsidiaries previously mentioned. These major products are sold in markets around the world, to age groups both young and old. The popularity of these name brand products has facilitated organizational growth and expanded product offerings annually. It is a core strategy of Coca-Cola to increase its portfolio in order to maintain its position as the market leader in the beverage industry (“Brands,” n.d.).
References
Brands. (n.d.). Retrieved April 11, 2017, from
http://www.coca-colacompany.com/brands/the-coca-cola-company
Our Company. (n.d.). Retrieved April 11, 2017, from
http://www.coca-colacompany.com/our-company/leadership
Top 5 Companies Owned by Coca Cola (KO). (January 12, 2016). Retrieved April 11, 2017
http://www.investopedia.com/articles/markets/011216/top-5-companies-owned-coca-cola-ko.asp
Who We Are. (n.d.). Retrieved April 11, 2017, from
http://www.coca-colacompany.com/careers/who-we-are-infographic
Integrated Strategic Marketing Plan: Section 3
1C. Shape of the Industry
Coca-Cola operates within one of the largest global industries, the soft drink industry. In fact, in the article titled “Market size of soft drinks in the United States from 2010 to 2014 (in million U.S. dollars)” it shows that the U.S. soft drink market has swelled to over $98 billion as of 2014. It has seen steady gains over this five year period.
Soft Drink Market Size
This highly competitive market includes a variety of players fighting over market share. In the article titled “Soft Drinks: Investing Essentials” by Isaac Pino, he includes a graph that details individual market share within the soft drink industry.
This graphical representation shows that Coca-Cola dominates this market as they hold 42% of total market share with Pepsi and Dr. Pepper trailing behind at 30% and 15%, respectively (Pino, 2014). Each of these companies hold vast product portfolio that include a variety of popular soft drinks as evidenced by the visual representation found in the article “An Overview of the US Nonalcoholic Beverage Industry” by Sharon Bailey.
Seen clearly, Coke is by far the most popular soft drink brand in the United States, but Pepsi Corporation brands Pepsi and Mountain Dew hold the second and third places and Dr. Pepper the fourth (Bailey, 2016). This data shows that the shape of the industry continues to evolve as the market progresses forward and each of these companies battle for both industry and brand position.
1D. Development of the Industry
The soft drink industry has experienced interesting developments in the recent past that has shifted the way companies in this market do business. While this industry has increased in value, the demand for sugary sodas has declined. In a market that has long been dominated by popular soda brands such as Coke, Pepsi, Mountain Dew, and Dr. Pepper, there has been a paradigm shift for alternative options. In the article “The 4 biggest ways American beverage consumption will change in 2016” by Kate Taylor, she explains that these companies are developing new healthy drink options as a result of changing consumer preferences. New products will include organic Gatorade, Aquafina flavored waters, sparkling Minute Maid, and sparkling Smartwater. This is due in large part to meet the needs of the target market who are now, more so than ever, focused on the health benefits of the beverages they consume. In line with the health initiatives established by the audience, soft drink companies will aim to redesign their products in both content and packaging. Whether it is reformulating their current products or developing new product lines, the aim will be to create products with fewer calories, sugar, and caffeine. Also, many have already begun to offer smaller cans and bottles that promote moderation. Isaac Pino backs up these statements with statistics that show that unsweetened variants in soft drink portfolios have seen the most growth in the past five years.
“According to IBISWorld, Dr. Pepper Snapple's Canada Dry brand was the only one of its five core drinks to achieve volume growth during the past half-decade, in part due to "unsweetened variants such as plain and tonic water." Expect Dr. Pepper and its rivals to increase their focus on a sparkling water category that's posting growth rates of 16.3% and 34% in 2011 and 2012, respectively” (IBISWorld as cited in Pino, para. 9, 2014).
All in all, these developments display a common trend away from traditional soda brands and an increase in healthier beverage alternatives. Research suggests that these changes will continue to be implemented as the industry develops to meet the needs of changing consumer preferences (Taylor, 2016).
References
Bailey, S. (2016, March 29). An Overview of the US Nonalcoholic Beverage Industry. Retrieved
April 18, 2017, from http://finance.yahoo.com/news/overview-us-nonalcoholic
-beverage-industry-134139317.html
Pino, I. (2014, August 25). Soft Drinks: Investing Essentials. Retrieved April 18, 2017, from
http://www.chron.com/business/fool/article/
Soft-Drinks-Investing-Essentials-5711301.php
Taylor, K. (2016, January 02). The 4 biggest ways American beverage consumption will change
in 2016. Retrieved April 18, 2017, from http://www.businessinsider.com
/4-big-beverage-industry-trends-in-2016-2015-12
United States: soft drink market size, 2014 | Statistic. (n.d.). Retrieved April 18, 2017, from
https://www.statista.com/statistics/422532/united-states-soft-drink-market-size/
Integrated Strategic Marketing Plan: Section 4
1A. 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 a variety of similar offerings, they appeal to a wide swath of consumers. Currently in the beverage market, consumer characteristics are changing as the market demand has increased for healthy drink choices. Described by Bhadin in “Marketing Strategy of Coca-Cola,” Coca-Cola adjusts its marketing scheme to meet these needs by expanding its product offerings to include more diet and sparkling water options (Bhadin, 2017). In short, because Coca-Cola products appeal to the general population, consumer characteristics are far ranging as all ages, income levels, and races purchase these products. The trend is towards more health consciousness, which will slightly change the beverage landscape moving forward. These are current Coca-Cola consumer characteristics.
1B. 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” describes the typical Coca-Cola consumer “A Coca-Cola consumer is generally median income, Caucasian, and senior age” (“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.).
References
Bhasin, H. (2017, April 14). Marketing Strategy of Coca-Cola. Retrieved April 24, 2017, from
http://www.marketing91.com/marketing-strategy-of-coca-cola/
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
Integrated Strategic Marketing Plan: Section 5
2A. Advertising Strategy
The proposed advertising strategy for Coca-Cola revolves around the recommended slogan “Live Fast, Sip Slow” Essentially, this relates to our target market because it hinges upon the fast pace lifestyle of our target market. Today’s consumer values time, convenience, and availability due to the need for instant gratification, hence “Live Fast.” In addition, we want to stay true to our roots and incorporate “Sip Slow” to make the connection between enjoying the best moments in life with a Coca-Cola product. Together, the marriage of both statements appeals to the lifestyle of our core consumers as well as provides a relationship to our foundational marketing message. This advertising campaign exhibits how Coca-Cola plays a role in the busy lifestyles of consumers and how it can be used as a means of relaxation and enjoyment, both key aspects of Coca-Cola’s marketing strategy. With this slogan, print ads, social media posts, and commercials will be developed to reflect the new message of Coca-Cola and appeal to our consumer base.
2B. Precedent Studies
Coca-Cola has a long history of marketing and advertising strategies utilized to generate interest in products and grow brand strength. Described in the article “A History of Coca-Cola Advertising Slogans,” slogans used in advertising has been a core aspect of Coca-Cola’s marketing plan since its inception in 1886. Characterized by short, to-the-point sayings, Coca-Cola has used slogans as simple as “Drink Coca-Cola” and “Open Happiness.” The variation in slogans over time has been largely dependent on consumer trends and outside environmental influences. For example, during prohibition Coca-Cola served as an alternative product to consumers starting to veer away from alcoholic beverages. During this time period, they changed slogans almost yearly to communicate marketing messages to a wide variety of new customers. From there on, Coca-Cola has focused on different advertising strategies based upon consumer trends including an emphasis on quality, refreshing taste, and its role in entertainment. Despite these variations in advertising, the company has remained centered on communicating the idea that Coca-Cola is a part of life’s best moments and the role the product plays in those experiences. While advertising themes and strategies have changed, the core message remains the same (“A History of Coca-Cola Advertising Slogans,” 2012).
References
A History of Coca-Cola Advertising Slogans. (2012, January 1). Retrieved May 02, 2017, from
http://www.coca-colacompany.com/stories/coke-lore-slogans
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