Assignment On: Marketing Plan of Coca-Cola

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Assignment

On
Marketing Plan of Coca-Cola

Prepared by
Md. Ariful Islam

EMBA 1st semester

Student ID: ES2003003

Registration No. EMBA 00536

Session: Spring 2020

Submitted to
Afjal Hossain

Associate Professor

Department of Marketing

Patuakhali Science and Technology University

1
23 January 2021

Afjal Hossain

Course Instructor

Principles of Marketing

Patuakhali Science and Technology University

Sub: Letter of transmittal

Dear Sir,

It’s my great pleasure to submit my assignment on Market plan of Coca Cola. I have got a great
experience while working on this assignment.

I would like to leave this report to your kind consideration for any unintentional mistakes preparing this
report. I am always at your service if you want to ask me anything about this report and it will be a great
pleasure to work with you again in future.

Sincerely yours,

Md. Ariful islam

Student ID: ES2003003

Registration No. EMBA 00536

2
Table of Contents

Page number
Executive Summary ------------------------------------------------------------------- 5

Marketing Situation ------------------------------------------------------------------- 6-9

External Factors-------------------------------------------------------- 6-8


Demographic --------------------------------------------------------------------------- 6-7

Social Factors------------------------------------------------------------------- 7

Political Influence------------------------------------------------------------------------ 7

Competitors --------------------------------------------------------------------------- 8

Government--------------------------------------------------------------------- 8

Internal Factor -------------------------------------------------------------------------------- 8-9

Human Resource Management------------------------------------------------ 8

Technology------------------------------------------------------------------------ 9

Management Levels------------------------------------------------------------------------ 9

Financing Capacity-------------------------------------------------------------- 9
Marketing Department--------------------------------------------------------------- 9

Threats and Opportunity----------------------------------------------------------------------- 10-11

Threats------------------------------------------------------------ 10
Other existing company ----------------------------------------------------------------- 10

Good taste of competitors ------------------------------------------------------------- 10

Political instability ------------------------------------------------------------- 10

Better professional promotion of competitor --------------------------------------------------------- 10

Opportunity --------------------------------------------------------------- 11
High growth rate --------------------------------------------------------------- 11
Huge local market ------------------------------------------------------------------- 11
Acceptance of Pet bottles --------------------------------------------- 11

Good relationship with the distribution channel -------------------------------------------- 11

Good relation with the Government ------------------------------------------------------ 11

Objectives and Issues--------------------------------------------------------------- 12-13

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Mission Statement -------------------------------------------------- 12

Motto of Coca-Cola ------------------------------------------------------------------- 12

Strategic Objective--------------------------------------------------------------------------- 13

Action Program---------------------------------------------------------------------- 13-18


Product---------------------------------------------------------------------------------- 13
What's in a Coca-cola?------------------------------------------------------------------------- 13

Price-------------------------------------------------------------------------------------------------- 14-15

Distribution Channel -------------------------------------------------------------------------- 15-16

Promotion --------------------------------------------------------------------- 15-16


Promotional activities of Coca-Cola------------------------------------------- 16
Sales Promotion------------------------------------------------- 16-17
Advertising-------------------------------------------------------- 17
Target Market------------------------------------------------------------- 17-18
Budgeting ------------------------------------------------------------------------- 18
Controlling System of Coca Cola------------------------------------------------------ 19

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Executive Summary

More than a billion times every day, thirsty people around the world reach for beverages for
refreshment. All around the world, drinking beverage is like an entertainment for people. Soft drinks are
considered as consumer products. All round the world we can see a different marketing phase used by the
beverage producing companies but in Bangladesh it is a little different. The companies do not directly sell

their products to the end consumers. Companies such as Soft Drinks ( Coca-Cola, Pepsi, RC-Cola, Uro-
Cola, Virgin, etc), Mineral waters (Fresh, Mum, ACME and etc), Juices (Pran, Danish, Sezan, etc) are
dependents on the distribution channels for making their products reach the final consumers. As the
companies are not making the people aware about their beverage through directly selling it to them, they
use other media and means to make its customers know about their products. They use the advertisements
as one of the most important promotional tools. Along with advertisement they also use other promotional
tools.

I have prepared the assignment on Coca-Cola Company with view to learn about the different

marketing prospects in Bangladesh and my selected product is Coca- Cola. Like always the company
is doing quite well although at the current moment RC-Cola is dominating the market a little more than

Coca-Cola. Still Coca-Cola has more market share than its competitors. Coca-Cola has an
effective marketing and advertising campaign. As the company does not have that skillful village
distributor they cannot reach out to a lot of people. There are lots of recommendations which are provided
for the improvement of the functionality in the marketing sector The company’s investment in local
communities in over 200 countries totals billions of dollars in jobs, facilities, marketing, purchase of local
goods and services and most importantly the local business partnership.

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Marketing Situation

Here we are dealing with two most important situational factors- External & Internal factors. Some
important determinants for this situation analysis are as follows:

EXTERNAL FACTORS INTERNAL FACTORS


1. Demographics 1. Human Resource Management

2. Social Factors 2. Financial Capacity

3. Political Influence 3. Technology

4. Competitors 4. Management Level

5. Government 5. Marketing Department

Table 1: situational factors

External Factors

Demographic

Demographic is the study of people’s vital statistics such as their age, race, ethnicity and location. It is
an uncontrollable factor in the external environment. Demographic is very important for marketing

managers. After survey we find that teenagers are the prime consumer of Coca-Cola products, rather
than the people at the age group of 60. Coca-Cola does not have an effective and fast distribution
channel in the villages of Bangladesh. Their competitors have an upper hand in this zone. From the

demographic point of view we have done a survey on the population who consume more Coca-Cola.

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Age Limit Percentage of Consumer

Below 10 10

11-15 20

16-20 23

21-25 18

26-35 14

36-45 11

45 and above 04

TOTAL 100

Table 2: Source [Tabani beverage Ltd]

Social Factors

The most difficult external factors for marketing managers to forecast control or incorporate into
marketing plans is the social factor. Social factors include our attitudes, values and lifestyle. According to
the company’s mission statement or other statements it is clear that they do not use any such ingredients
(e.g. Alcohol), which, contradict to our perception, values of Islamic religion or any other norms, and
believes.

Political Influence

In Bangladesh hartal is a part of our life. Like all other third world counties we have political
problems too. The marketing manager of Coca-Cola Company generally sells Coca-Cola
8,000 cases (1 case = 24 bottles) per day but during hartal time the company faces a great loss as
they cannot transport their products to the market. Other than hartals they seem to have lesser
problems regarding the political condition of Bangladesh.

Competitors
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Pepsi is a very powerful brand name and is one of the biggest competitors of Coca-Cola.

They compete with Coca-Cola throughout the world and it is no different in Bangladesh. At the
current moment RC- Cola is a very big brand name in Bangladesh and is the greatest rival for
Coca-Cola in Bangladesh. Mountain Dew is a new brand and is a threat for Coca-Cola. RC
beverages with the brand image that Partex holds in this country RC beverage easily became a
big competitor for Coca-Cola. RC’s market share is increasing which in not a good sign for

Coca-Cola. Mineral water such as Mum, Fresh, ACME also a competitor of Coca-Cola.
Different kinds of Juice also compete with soft drinks.

Government
Coca-Cola has been in business in Bangladesh for a long time but still today there is no
record of the company being in any conflict with the government. Coca-Cola always tries to
follow the government rules and regulation and they always pays the government the taxes and
tariffs while bringing in their raw materials from their Parent Company.

Internal Factor

Human Resource Management

Human resource management refers to the system that influences employee’s behavior, attitudes and

performance. The roles of the Human Resource in Coca-Cola Company are as follows:

Change Agents
Choose a Strategic Partner
Expert Administration Body
Recruit Skilled and Efficient Employees

Technology

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Like all other companies, for Coca-Cola, technology is the most important factor. Coca-Cola
uses very high-tech machines for its production. In 1993 a new plant with 500 BPM capacities was
established just beside the previous plant. Now the total production line capacity of the company is app.
830 BPM. In 1987 the Abul Monem Company installed new H & K bottling line along with and installed
capacity of 450 BPM. The state of the art bottling plant with an installed capacity 600 BPM is the most
modern plant in the country and is equipped with the straight-line-technology from KHS German.

Management Levels

Coca-Cola Company has three management levels:

Strategic level: The Production Procedure, HRM, Store, Finance, Quality


Control is all under his control.
Technical Level: They are responsible for the administration, production, sales &

distribution of Coca-Cola products. Under production department they have quality


managers; under brand manager they have brand officer and marketing officer.
Operational manager: They are responsible for the distribution of the products and are
responsible for al operational activities.

Financing Capacity

From the financial report of 2002 and 2003 we can conclude that the company has a very good and

sound financial capacity. Coca-Cola has a very high level of income. Moreover they are successfully
conducting their business all over the world.

Marketing Department

All their distribution & sales promotion falls under this department. Coca-Cola Company has the
marketing intelligence. They do a survey in all over the market situation and then they decide what step
they should take. During the off seasons the marketing managers takes some promotional activities and
uses few strategies to maintain their economic growth rate. The promotional strategies they use are like
giving gifts, coupons, scratch cards etc.

Threats and Opportunity


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Threats

Other existing company:


The other rising companies are becoming threat for Coca-Cola. Opening of one company
decreases 1% market share each year. Today RC Cola is a very reputed beverage producer and
with their attractive advertisements and distribution channels they are at this moment in a better
position then Coca-Cola and it is a big threat to them. Not only RC Cola but Pepsi, Virgin and
euro lemon are also in this business. This means that consumers have more options to choose.

Good taste of competitors:


The other beverage company’s product is also coming up with the different taste like;
mountain dew, URO cola with lemon, Fizz- UP, Pepsi has but Coca-Cola Company does not

have any product like that in our country. So that it’s been a great threat for Coca-Cola.
Political instability:
Like all other companies Coca-Cola also faces a lot of problems regarding the political
situation of our country. The political instability creates a lot of problems in the production of
goods. Due to hartals, the transportation of their products is affected a lot.
Better professional promotion of competitor:

Competitors are becoming very professional with their advertising. RC Cola has designed a very
attractive advertisement. They are using all well-known models like Nobel and Reshmi, who is an Indian
model, for heir advertisements. Not only RC-Cola but also other beverage producers are using models and

jingles for their advertisements. Coca-Cola on the other hand does not have that many advertisements
an as such is being threatened by its competitors. There is a possibility that their competitors would
capture greater market share through advertisements

Opportunity

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High growth rate:
From its very inception in Bangladesh, Coca-Cola has a very potential market in our
country because of its international reputation, quality and high acceptance among people of all
ages. Coca-Cola does not have that good distribution channel outside Dhaka but now they are
trying to get hold of better distributors and thus the village people can have access to their
products. So it can be seen that in the near future they can have even a greater market share than
today.

Huge local market:


The selling activities of Coca-Cola are very high in the local market than other existing
company. They capture the whole market by giving the best quality to their customer and dealing
professionally.

Acceptance of Pet bottles:


Coca-Cola launched attractive pet bottles, which is accepted by the entire customer, as it is
portable and people are willing to buy these pet bottles rather than the bottles. So their effort to
launch pet bottles is successful.

Good relationship with the distribution channel:


Coca-Cola Company and its distributor have a very good relationship with each other.
They supply their product according to their needs. They promote their distribution channel
through discount & allowances. They serve their dealers on time.

Good relation with the Government:


Good relationship with the Govt. is very important for any company to run its business.

Objectives and Issues

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. Mission Statement

Respect for labor and a human right is the fundamental to Coca-Cola Company’s principles for
conducting business around the world. We treat our employees in more that 200 countries in which we do
business in fairness, dignity with respect. Or bottling partners and we operate in accordance with local
laws and contribute to the communities. Ultimately, a company’s identity is measured by how it connects

with people and with the world around it. That is why The Coca-Cola Company’s mission is
articulated as a promise.

The Coca-Cola Company exists to

Benefit and refresh everyone it touches.

All of the success, both past and future, is a product of this promise. Our growth hinges upon our
ability to build and nature relationship-with consumers, customers, bottling partners, suppliers,
government agencies, communities, employees and share holders. Further, as we help to build thriving
communities all around the world, we seek to ensure a healthy and sustainable marketplace for our
beverages-today, and far into the future.

Motto of Coca-Cola:

Throughout the history of the world’s most popular soft drink, advertising for Coca-Cola

has followed the trends of time. Coca-Cola’s advertising slogans are memorable and create
lasting impressions. Since the first slogan was introduced in 1886 ‘Delicious and refreshing’.
The overall theme has been refreshment- one of the pleasant things in life, distinctive and
available nearly everywhere. Motto followed the lead to make Coca-Cola the best known soft
drink in the world.
Today, motto for Coca-Cola and the company’s other products are carefully aimed towards
individual tastes while understanding the universal appeal of refreshment. And very
appropriately, the company has globally launched its new motto Theme –“Enjoy Coca-Cola”.

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‘Coca-Cola motto’, the world’s best-known consumer product demands the talents of
professionals in many different areas. The mottos that has used till now are:
“Dil thanda to duniya thanda”

Strategic Objective
Short term

To create Quality, Service, Cleanliness and Value in their current product”

Long term

To acquire the position as a market leader of the beverage industry in Bangladesh by producing &
serving high-quality and high value-added soft drink.

Action Program

Product

Our selected product is Coca-Cola. Coca-Cola has different sizes. They have 1 liter glass bottle

as well pet bottle. Coca-Cola also has 175 ml and 250ml glass bottles. In addition, they also have 1.5

liter of pet bottle and in the recent past they introduced into the market 2 liter pet bottle Coca-Cola. It

has also 250ml of can Coca-Cola.

What's in a Coca-cola???
Carbonated Water

High Fructose Corn Syrup

Caramel Color

Phosphoric Acid

Natural Flavors

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Caffeine

Price

The retail price of the beverage products are given below:

Product Item Quantity per pack Price

250 ml.(can) 40.00 Tk

250ml.(pocket pack) 20.00tk

Coca-Cola 500 ml 35.00 Tk

1000 ml. 50.00 Tk

2000 ml 110.00 Tk

250 ml. 15.00 Tk

600 ml 35.00 Tk

Sprite 1000 ml. (Pet) 50.00 Tk

2250 ml 110.00 Tk

Fanta 250 ml. 20.00 Tk

250 ml. 12.00 Tk

500 ml 30.00 Tk
RC- cola
1000 ml. (Pet) 50.00 Tk

1500 ml 70.00 Tk

Pepsi 250 ml. 15.00 Tk

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500 ml 30.00 Tk
1000 ml. (Pet) 50.00 Tk

1500 ml 70.00 Tk

2000 ml 100.00 Tk

250 ml. 15.00 Tk

500 ml 30.00 Tk

7 up 1000 ml. (Pet) 50.00 Tk

1500 ml 70.00 Tk

2250 ml 110.00 Tk

500 ml 15.00 Tk
Mum
1000 ml 25.00 Tk

Sezan juice 250 ml 15.00 Tk

Pran juice 250 ml 15.00 Tk

Table 3&4: Source [Tabani beverage Ltd]

Distribution Channel

Manufacture Agent Dealers Retailer

Consumer

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Distribution Channel

The company will establish an extensive distribution channel for all brand of coca-cola company to
make it available throughout the country. It will build six distribution centers (Agent) in the six divisions
of Bangladesh: Dhaka, Chittagong, Sylhet, Rajshahi, Khulna, and Barishal. From these distribution
centers, they will supply the coca-cola & other brands to different districts dealers. From dealers, the sales
representatives will supply retail shops (small and mega) on the basis of their demand. The small traders
will purchase Coca-Cola directly from the dealers.

Promotion

Promotional activities of Coca-Cola

Promotion means activities that communicate the merits of the product and persuade target customers

to buy it. According to Coca-Cola promotion is one of the major tools of marketing. A good way of
promoting a product not only helps to influence and motivate people to buy it but also give a good
impression about a company and it products.

Sales Promotion

Sales promotion includes marketing activities-other than personal selling, advertising, and public
relations- that stimulates consumers, trade and dealer effectiveness. Sales promotion can be aimed at end

consumers, trade customers, or company’s employees. Coca-Cola offers all of these sales promotions

every year for various purposes. Coca-Cola s sales promotion tools include free samples.

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Sales promotion is generally a short run tool used to stimulate immediate increase in demand. Frequently
Coca-Cola uses sales promotion to improve the effectiveness of their promotion mix ingredients,
especially advertising. Research shows that sales promotion complements advertising by yielding faster
sales responses.

Advertising

Advertising is a form of impersonal, one-way mass communication paid for the sponsor. Many different
media may transmit it. Examples include television, radio, newspapers, magazines, books, billboards etc.

Coca-Cola does advertise by these media as well. The Coca-Cola advertising usually follows a
campaign process that consists of five phases:

Determining the advertising objectives


Setting the campaign budget
Determining the message to be transmitted to the target market
Selecting the message vehicle and
Evaluating the campaign

Advertising is one of the most important promotional tools among the promotion mix of a company,

which is used in order to convey their message along with visual effect. Coca-Cola is number one
global brand in soft drinks items. So it also uses media advertising in order to capture full market
coverage throughout the world. In case of any sort of advertising campaign or slogan i.e. the central
theme of ad is the most important part advertisement along with its storyboard. In fact, ad campaign
communicates the product message to its target customers.

Target Market

From the above table we can see that Coca-Cola Company’s main target audience is the teenage
people (16-20). They aim their advertisement mostly at them. Then they target the age group of 11-15.

They are also quite a significant consumer of Coca-Cola products. They hardly target the aged people.
Their target is between the ranges of 11-35 years old population.

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Age Limit Percentage of Consumer

Below 10 10

11-15 20

16-20 23

21-25 18

26-35 14

36-45 11

45 and above 04

TOTAL 100

Table 5: Source [Tabani beverage Ltd]

Budgeting

Beverage giant Coca-Cola will invest $85 million in Bangladesh over the 2019-2020 ,
said the company's global Chairman and Chief Executive Officer James Quincey. 

The investment from Coca-Cola is a recognition of the economic growth of


Bangladesh, and the company is committed to developing its business here in a
sustainable manner, he told a press briefing in the capital during his maiden visit to
Bangladesh on Tuesday. In advertising moment they invest more then 35+ million and
plant side they invest ,more then 50 million .And their revenue in this section in 2019-
2020 fiscal year of 15 million .This is the budgeting system for Coca Cola.

Controlling System of Coca Cola


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The control system of this enterprise plays a major role in shaping the decision-making process in the
aspect of financial productivity. It is a core of the assessment of the dividend payment system and cash
flow. In addition, it also reflects the problematic issues of the company’s performance, which require
saving costs. Human resources represent a significant part of the organization’s performance. Coca-Cola
values every employee and aims to train and develop human resources according to its needs. Cultural
factors of the multinational performance also influence its activity with respect to the cultural values.

Finally, the paper reveals the essence of the strategic fit, ethical prescriptions, and recommendations.
Each paragraph proves that Coca-Cola is a highly ethical company, which appreciates its mission,
strategy and organizational components. The recommendations fit the firm’s needs and support the core
of the productivity objectives.

The following discussion reveals the company’s organizational design, human resources concerns, control
systems, cultural factors, strategic fit, ethical prescriptions, and recommendations aimed towards the
improvement of the firm’s performance. The aim of the essay is to help a reader to understand the nature
of the productivity of Coca-Cola. The mentioned sections aim to reflect the peculiarities of the activity of
the organization by describing the details of the internal environment. All sections build the core of the
research and help to understand the essence of the company’s routine activity. However, it is important to
consider each part separately in order to understand the connection between various organizational
components. A systematic analysis of every element of the company’s performance should be enough for
the consideration from the point of business wisdom and knowledge.

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