Coca-Cola's Acquisition of Costa Coffee and Marketing Effectiveness vs Efficiency

This report discusses Coca-Cola's acquisition of Costa Coffee and the company's marketing strategies. It also explores the debate between marketing effectiveness and efficiency, and the importance of prioritizing effectiveness in marketing planning.

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Article 1: Marketing News
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The article is related to the acquisition of Costa coffee by the coca cola. Now the whole world
is thinking that the CEO James Quincy of the Coco-Cola is heading to acquire the Starbucks
now. But in a real scenario, it is not the case. From the article, it has been analyzed that the
Coco-Cola has purchased the Costa chain by paying $5.1. This is directly done with the aim
to have the scope in the coffee industry also by merging or acquiring the big brand name. It is
analyzed that company focuses on entering into the market and less inclined towards the
intention to increase its market share (Marketing Week, 2018). These articles reveal how
Coca-Cola has been using its marketing strategies and facts to implement the effective
strategic planning and procedure (Sauerbronn, Barros, & Faria, 2018).
From the research, it has been analyzed that the coffee has the addressable market of more
than $500 bn. It could be inferred by seeing this as an opportunity; Coca-cola entered the
market and could easily strengthen its business in the upcoming years. As this market has
full of success and expansion. The coca cola uses the marketing strategy of selling at low in
the initial years and can grab the large market without any heavy investment. Another
strategy used by the Coca-cola is that the company will be providing the coffee at many
locations which are convenient for customers to get. Coca-Cola is planning to set the outlets
at the petrol pumps and other convenience stores so that the mass public can reach out to it
and have coffee (CNBC, 2018). This has shown the core competency and marketing strategic
planning which company used to strengthen its business functioning (Endrini, et al. 2011).
The coca cola has found with using the perfect match of the marketing theories in which
utilization of the price done right by the company in launching and acquiring the Costa coffee
Another strategy used by the coca cola is that the channels used by the company. The biggest
piece that the coca cola will enjoy is the immediate consumption channels and the satisfaction
consumers get from the coffee due to his brand which is available in low cost. This is
considered to be a big opportunity for the people and customers that they have stores nearby
(Marketing Week, 2018).
The important stakeholders found in the article include the shareholders, consumers,
investors, government and other institutions which are related to the merger. From the article,
it has been analyzed that many people get benefited from this. The major benefit will be
enjoyed by the investors and consumers at large (CNBC, 2018).

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The major issue in this is related to the article to decide whether the ingredients are legal,
consumable, and safe or not (CNBC, 2018).This has been the major issue faced by the
company in launching the product. But company stuck to their consumers and trust that their
beverages are indisputably safe and therefore want to see the consensus science behind any
ingredient. Coco-Cola is now focusing to have the drink which consumers can drink each one
day. Ultimately, coca cola proved it right and hit a new 52 week high in Friday’s trading
session and ultimately closed with 0.86 percent at $50.17 share. This article has shown the
deep understanding on the marketing factors and clients choices which may be considered to
analysis the company (Cheptegei, 2016).

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References
Lamberton, C., & Stephen, A. T. (2016). A thematic exploration of digital, social media, and
mobile marketing: Research evolution from 2000 to 2015 and an agenda for future
inquiry. Journal of Marketing, 80(6), 146-172.
Endrini, S., Jaksa, S., Marsiati, H., Othman, F., & Rahmat, A. (2011). Effects of cola nut
(Cola nitida) on the apoptotic cell of human breast carcinoma cell lines. Journal of
Medicinal Plants Research, 5(11), 2393-2397.
Marketing Week. (2018). Coca-Cola is not planning to take on Starbucks after Costa
acquisition [Online] Retrieved from:
https://www.ama.org/publications/MarketingNews/Pages/Mobile-Mobile-
Mobile.aspx.
Marketing Week. (2018). Coca-Cola is not planning to take on Starbucks after Costa
acquisition[Online] Retrieved from:
https://www.marketingweek.com/2018/11/19/everything-that-matters-this-morning-
19-november-2018/
Cheptegei, D. K., & Yabs, J. (2016). Foreign market entry strategies used by multinational
corporations in Kenya: A case of Coca Cola Kenya Ltd. European Journal of
Business and Strategic Management, 1(2), 71-85.
Sauerbronn, F. F., Barros, D. F., & Faria, A. (2018). Coca-Cola and strategic CSR. In The
Dark Side 3 , Australia: ROUTLEDGE in association with GSE Research.
CNBC. (2018). Coca-Cola CEO on coffee strategy: We're not going head to head with
Starbucks [Online] Retrieved from: https://www.cnbc.com/2018/11/16/coca-cola-ceo-
james-quincey-talks-coffee-cannabis-strategy.html

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ARTICLE 2: MARKETING WEEK
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Introduction-
This article-marketing week is related to the effectiveness over the efficiency. This
prediction may be more desirable thinking in comparison of the actuality; however, there are
indications year 2019 might be the year marketers succeed in attaining the business to
prioritise effectiveness over the efficiency. There are various brands, which are held up as
instances and called to speak at events on marketing effectiveness accurately because these
brands are leading packs. The issue faced in this article is that there are certain marketers
who give priority to the efficiency in place of the effectiveness (Marketing Week, 2018). The
major focus of this article is on showing the requirements of the marketers to move beyond
ROI (Wilhelm, Schlömer & Maurer, 2015).
Marketing issue-
From the past time, it can be analysed that forward-thinking brands incorporating the
effectiveness of marketing in the planning. These brands are very useful to prioritise the
effectiveness over the efficiency in the events or at various stages. From the research, it has
been analysed that some marketers still do not believe in effectiveness. Moreover, they do not
work for efficiency. The actual marketing challenges find in the article is that these marketers
are depended on the digital acknowledgment or return on investment (short-term return on
investment) to assess or evaluate the effects of the advertisement in place of the more holistic
procedures of evaluating how marketing makes beneficial development, like econometrics.
There is also rising force from the assembly room to show that the marketing investment
leads to the results of the effect of the business. That would only enhance the upcoming
period as the financial uncertainty in United Kingdom continues unless the Brexit deal
incredibly shows that directly makes the constant platform for worldwide deals weak
consumer self-confidence strikes spending and business watch cost (Gondek, et, al, 2016).
Shareholders benefits or challenges-
The important shareholders in this article include marketer. They are the most
benefited from it. The benefit that marketers get from the marketing strategies like the high
technology, innovation and various other new techniques to enhance the effectiveness. The
marketers, who move their concentration to the effectiveness rather than efficiency, would
obtain the reward (Dong, et. al, 2016). According to a studies, if brands improved owed the

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marketing spend there will be the chance to enhance the profitability of the company by the
combined £34.2 per annum. It render the scope of the scale of the chances for marketers,
which get effectiveness learning and relate them to the business. And this is one the rest of
the business would be value too. Not only the marketers will get the benefit but other the
people as being the part of the effectiveness (Verhoef, Kannan & Inman, 2015). From the
issue, it has been analyzed that the shareholders and others are getting advantage from the
situation.
However, with increasing amount of information at the disposal (the growing number
of consultant that desire to assistance) more marketers are initiating to assess what matters,
not just what is so simple, and retool the investment approximately both short- metrics and
long-term metrics. To has needed hiring people (frequently not easy to research) with
different skill sets, and these teams are starting to embed themselves within brands and really
have an impact (Critchlow, et. al, 2017).
Recommendation-
After analysing the Article, it can be concluded that being well-organized implies the system
is functioning the right manner. The relation between the effectiveness and efficiency is that
effectiveness is a measure of decency of the output, while efficiency is the valuation of the
sources needed to get the outputs. It is essential to review the results as per the requirement of
the marketers. It is also recommended that the marketers should take step about what matters
in place of what is easy (Gil de et al. 2012).

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References
Ashley, C., &Tuten, T. (2015). Creative strategies in social media marketing: An exploratory
study of branded social content and consumer engagement. Psychology &
Marketing, 32(1), 15-27.
Critchlow, R., Plumptre, A. J., Alidria, B., Nsubuga, M., Driciru, M., Rwetsiba, A., & Beale,
C. M. (2017). Improving Law‐Enforcement Effectiveness and Efficiency in Protected
Areas Using Ranger‐collected Monitoring Data. Conservation Letters, 10(5), 572-
580.
Dong, W., Zhang, S., Liao, H., Liu, Z., Li, Z., & Yang, X. (2016). Assessing the effectiveness
and efficiency of map colour for colour impairments using an eye-tracking
approach. The Cartographic Journal, 53(2), 166-176.
Gil de Zúñiga, H., Jung, N., & Valenzuela, S. (2012). Social media use for news and
individuals' social capital, civic engagement and political participation. Journal of
Computer-Mediated Communication, 17(3), 319-336.
Gondek, D., Edbrooke-Childs, J., Fink, E., Deighton, J., & Wolpert, M. (2016). Feedback
from outcome measures and treatment effectiveness, treatment efficiency, and
collaborative practice: A systematic review. Administration and Policy in Mental
Health and Mental Health Services Research, 43(3), 325-343.
Simon, T., Goldberg, A., & Adini, B. (2015). Socializing in emergencies—A review of the
use of social media in emergency situations. International Journal of Information
Management, 35(5), 609-619.
Verhoef, P. C., Kannan, P. K., & Inman, J. J. (2015). From multi-channel retailing to omni-
channel retailing: introduction to the special issue on multi-channel retailing. Journal
of retailing, 91(2), 174-181.
Wilhelm, H., Schlömer, M., & Maurer, I. (2015). How dynamic capabilities affect the
effectiveness and efficiency of operating routines under high and low levels of
environmental dynamism. British Journal of Management, 26(2), 327-345.

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Appendix
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