Marketing Strategies for Coca-Cola's Storm Coke

This assignment provides a comprehensive analysis of Coca-Cola's marketing strategies for its new product 'Storm Coke'. It involves segmentation, targeting, and positioning (STP) strategies to gain attention from the mass audience. The company will adopt demographic segmentation, differentiated targeting, and cost positioning to achieve its objective successfully. The budget for this project is £130, which includes salaries, marketing expenses, and variable expenses. Coca-Cola will monitor consumer reactions and satisfaction through surveys and feedback services, as well as test marketing and revenue monitoring to control marketing activities.

Marketing Essentials

INTRODUCTION
Marketing can be defined as process of satisfying consumers’ needs and raising their
awareness towards the product or services of company. This aids in gaining attention of
consumers.. Coca-cola is chosen for the study. firm was introduced by John Stith in 1886. Study
highlights concept of Marketing, Marketing function, Marketing environment, Interrelationship
of marketing function and other functional units. , Marketing mix, marketing plans in context of
Coca-cola.
LO 1
P1 Key Roles and Responsibilities of The Marketing Function
“Marketing is primarily based on thinking about the enterprise in terms of consumer
desires and their pride. Marketing is the management manner for identifying, evaluating and
gratifying consumer necessities profitably”.
IMPORTANCE OF MARKETING:
 BASIS OF COMPANIES EXISTENCE:
Whilst customers are happy from company's goods and offerings then only prosperity of
any business is determined. Considering the fact that through marketing COCA COLA assures
client satisfaction via fulfilment in their wants and needs. Thus it has grown to be the social and
financial basis for the existence of the company.
 INFORMS CUSTOMERS:
Through marketing COCA COLA informs the target audience about the products and
offerings which is being supplied through a company. It provides the worth of the product, the
usage and further details that clients generally need to understand.
 BOOST SALES :
COCA COLA boots its sales by way of utilizing different ways to promote the service or
product that is being supplied. This can be accomplished through diverse mediums which
includes word of mouth, social media, direct promotion, press, broadcasting, telecasting, point of
sales, agency website and other channels that helps in attracting and inducing customers to buy
amazing products of organisation.
 It is beneficial in smooth movement of services and goods of company:
Marketing is very helpful for company in transfer, changing and movement of products.
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Products are available to clients through diverse intermediaries’ viz., retail stores wholesalers,
etc. (Malhotra, 2015).
 Revenue generation:
Amongst diverse activities, advertising is the best tool that generates sales directly to
company because advertising consists of economic activities which encompass manufacturing of
goods, commercialism function, physical distribution of goods and lots of other supportive
capabilities. Overall performance of all these generate sales to the company that's the primary
source of its survival.
Function of marketing:
It promotes them through differentiating them from comparable merchandising functions
may encompass marketplace research, generating a marketing plan, and product improvements
well as beholding commercialism, promoting, distribution of sales, and customer service.
KEY MARKETING FUNCTIONS:
ANALYSIS OF MARKET:
One of major function of marketing is to gather and analyse market facts. It is helpful for
COCA COLA in determining market size and scope. Also, it additionally assists in gaining ideas
on their location, age, profits, and gender that may help in arranging marketing campaigns.
PRICING OF PRODUCTS:
It is the most critical characteristic of an advertising and marketing supervisor to decide
price of a product. Company sets prices by looking upon employment rate and income source of
public. This aids in generating more demand and raising profitability of organisation (Chernev,
2018)..
DISTRIBUTION:
Under this feature of marketing the choice regarding the matters from the location of
manufacturing to the area of consumption is taken into consideration. Firm adopts DIRECT
SELLING method, in which firm deleiver goddsto consumers directly. Furthermore, INDIRECT
SELLING is also adopted in which complete sellers and agencies are here those who selss goods
to consumers.
AFTER SALES SERVICE :
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 After sales service refers to various approaches which ensure customers are happy with
the products and offerings of the company. After sale service of COCA COLA plays a
vital role in client satisfaction and retention. It generates dependable customers.
MARKET SEGMENTATION :
Market segmentation is the process of fragmenting customers into definite, measurable
groups that have akin want and desires. The importance of marketplace segmentation is that it
permits COCA COLA to exactly reach a buyer with specific want and desires.
Role of marketing and its responsibility
Developments in legal and political discipline greatly affects the marketing choice of
COCA COLA. Laws have an effect on production ability, functionality, product layout, pricing
and advertising of company . Using technology, marketing helps in knowing more about needs
of consumers and help in developing relationship with them. Technology helps company in order
to reply quickly to buyers..
Economic environment impacts on company's production and consumer’s decision
making process in COCA COLA. By this way import export gets affected.
Competitive environments renders creativity, productivity, It helps in creating a better
work environment where people like to work for longer duration.
The social forces make marketing accountable. That means company takes a lead in
disposing of socially harmful products. By this way firm can try to produce effective soft drinks
for example, dirt coke, which are beneficial to the society.
There are several key elements of marketing function such as place, price, promotion etc.
Marketing, administration etc. all departments are interrelated. This interrelationship supports the
firm in meeting the organisational goal. Marketing function aids in generating sales that help
finance department in allocating sufficient funds to all department. Hr department hires people
and these talented people helps in generating sales and producing high quality products.
Hr department: Due to the marketing group’s connections with clients, they are able to
promote the values of the company. Through this promoting, they are able to influence quality
employees. HR crew of COCA COLA is answerable for training employees, the marketing is
helpful for HR department in order to arrange training sessions for workers (Armstrong and
et.al., 2015).
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HR and marketing department of coca cola jointly monitor social media with a view to get idea
about how customers feel about their products in addition to how present or former employees
feel about their company.
OPERATIONAL DEPARTMENT:
Marketing functions and Operational department of coca cola develop in a way that it
helps the company be more transparent, cost-effective, combative, profitable, and responsible.
Marketing functions and operational department of coca cola allows success as they are gaining
higher uniformity, cost-efficiency and effectiveness by integrating company's operations and
workflows.
FINANCE DEPARTMENT :
The accounting department of COCA COLA works intently with the advertising and
marketing branch that oversees the performance of sales initiated by way of the advertising and
marketing team. Finance department and marketing departments of COCA COLA are linked in
such way that the financing department determines a company's financial condition, which help
marketing team to decide a price range within which they should operate
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P2 Marketing role in company
Marketing communicates product to customers. It looks upon activities related to sells a
products & services of firm. Importance of this marketing element is described as below:
Brand Name creation-
Marketing is helpful in creating brand image. It is the asset of the company and its
responsibility of the marketing department to create it. Coca-Cola has strong brand presence and
has good image, and it become possible through marketing only.
Coca-cola's marketing department focuses on creating more consumer demand for its
brand horizontally & vertically across the world.
Development of products-
Marketing department helps product development team to develop new product & to
improve existing one. Successful companies like Coca-cola stay involved in their current product
and keep modifying & improving them, companies does not want to release new products(Pike,
2015).
Companies marketing department search for the perfect market & analyse the customers
then develop a product.
Promoting and effective communication-
marketing department establish advertising campaign, develop e-mail marketing
programs, product publication to promote and communicate products & services to its customers.
Coca-cola's promotion & communication strategy is the best example of global marketing that it
is not only instantly recognisable but it can be found in every area from a petrol station to cinema
and shops in every small areas.
Building Relationship Between Customer & Organisation-
Coca-cola is worlds number one consumer marketing company, which focuses on
building relationship among customer & company, companies success depends on its value &
volume of sales and its profitability which comes from its customers.
Coca-cola establishing relationship with its customers by providing promotional services
& the best delivery and it also focuses on meeting consumer needs (Lane, 2016)..
Generate Revenue & Income
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Coca-cola earn profits during the marketing process of its products & services and the
coca-cola reinvest its profits for further expansion bad diversification. Profits of coca-cola shoes
an increasing trend year by year which becomes possible through marketing only.
Structure of Coca-cola and its operations
Coca-cola is multi-national company, it follows tall or divisional structure. It has two
operational groups: bottling group & corporate. Structure of Coca-cola has 5 continental
divisions and & each unit is controlled by higher authorities, who handle daily operations while
the corporate manager focus on the long-term planning (Pike, 2015)..
All important decisions are taken by higher authorities and few are handled at the lower
level at the regions o (Bhatt. and Gupta, 2018).
Divisional structure gives the company an opportunity to react in changing environment.
System operates through multiple local channel, it manufactures beverages & syrup and then
sells to bottling operations. The company currently employees 94,800 employees.
Coca-cola opened new offices in various areas to facilitate decisions being made are
close to culture & environment of that particular area. Company made great efforts to achieve a
hybrid structure. These changes made in structure of company in past few year's created positive
impact on company and this is helpful in increasing sales of the company
Operational Divisions
Finance-
Finance department focuses on maximising profits of the company by minimising its
manufacturing cost and if there is an increase in the profits of the company then its market share
also increases. Finance division also takes care of share-holders wealth because shareholders are
owners of the company.
Coca-cola focuses in re-investment strategy, it re-invest profits for making expansion &
diversification and company reduces its dividend payout ration as compare to the last year..
Human Resource-
Coca-cola's human resource department manages various needs of the companies'
employee like staffing needs, compensations, benefits, law compliance & performance appraisal.
Recruitment of the employees of coca-cola is done according to the geographical & cultural
needs of the company & its employees. Company does not want to share its recipe or any
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information with in the market so it focuses more the recruitment process of its employees, the
employees should be trustworthy & loyal towards the company.
Coca-cola HR department set realistic pay structure which sets salaries, incentive etc..
Customer Services-
Companies success depends on its customers so, Coca-cola's customer service
department focuses on fulfilment of the requirements of its customer. It collects feedback from
the customers and make changes accordingly. These operational department emphasize on
maximising companies sales volume and develop campaigns which helps the company to
increase its customer base.
Marketing-
Marketing division of Coca-cola helps the company to perform all the activities related
to selling a companies products & services. Marketing division of coca-cola helps in creating
brand image (Malhotra, 2015). Marketing helps in analysing or forecasting future needs of
human resource and hr department recruits people and retain staff so that company can have
good and talented employees all the time.
LO 2
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P3 MARKETING MIX OF COCA-COLA AND Pepsico
COCA-COLA Pepsico
PRODUCT - COCA-COLA deals in wide range of
beverages and soft drinks like Fanta,
Minute Maid, etc.
It not offers kind of
snacks and food
products. Pepsico also
offers different range of
soft drinks like
tropicana, etc. The
company along with the
beverages and soft
drinks also provide
snacks and food
products like lay's,
doritos, cheetos etc.
PRICE Coca cola adopts competitive and
bundle pricing strategy where in
competitive pricing strategy it prices its
products as per the prices of its
competitor. In bundle pricing they offer
bulk buying at lower price. Prices are
set adequately not too high so that
normal customer could afford to buy it
and not too low that give lower quality
impression.
Pepsico also use
competitive pricing
strategy against its
competitor like coca
cola and set prices
according to the
customer's demand for
the product and
purchasing power of the
customer. It adopts
different pricing strategy
for specific brands in its
product portfolio like
for soft drinks they use
competitive pricing due
to intense rivalry with
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coca cola
PLACE Coca cola operates in more than 200
countries and Direct distribution is
adopted by company.
company relies on its
bottling partners for
distribution and sell its
products across 6
operating regions that
includes Europe, north
America etc. .Pepsico
also has a market
capture in more than
200 countries
The products of Pepsico
are sold online by its
website.
PROMOTION A completion is high hence coca cola
spend large amount on promotional
activities to capture huge market share
so that sales and revenues of the
company increases. It promotes its
product through advertisement on
television, internet and social media
(Gillespie and Riddle, 2015).
this organisation has
introduced campaign
as a marketing strategy
such as taste the
feeling campaign as a
brand approach and
use eye catching
position
PEOPLE people includes the employees of the
company. The key for development and
understanding the employee's needs is
motivation and rewards. Coca cola
provides incentives on financial basis
like rewards for innovative solution,
quarter based performance reward etc.
the performance of the
staff is measured on the
basis of seven key
achievement areas that
are relationship,
leadership,
management, corporate
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and on non-financial basis like
personality development, education,
recognition etc.
and social
responsibility, people
development,
innovations, business
goals. Pepsico also
facilitate incentives to
their employees on
financial and non-
financial basis.
PROCESS coca cola adopts indirect distribution
channel for availing its products to the
ultimate consumer through super
markets, theatres, restaurants, grocery
stores, street vendors etc. coca cola has
wide distribution network than Pepsico.
Pepsico also avails its
products to customers
through indirect
distribution channel that
includes mini-markets,
super markets,
restaurants, grocery
stores, street vendors
etc.
Pepsico has narrow
distribution network as
compared to coca cola.
PHYSICAL EVIDENCE attractive logo and amazing tag line are
unique features of company’s physical
evidence.
Infrastructure of retail
shop is good and its
logo is unique.
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objective of company: to raise sales of organisation, expand business across world.
 To ensure global presence: It is important that the company gets global presence so that
more and more people get aware about it and make purchase of it.
 Conduct business ethically to drive sustainable growth in today's world: the
business conducted ethically will accelerate ecological balance in the environment.
 Quality product at affordable price: coca cola provides quality beverages brands at
reasonable prices so that normal consumer could also buy and consume the product.
 become a leading provider for beverage brands: Company aims to become market
leader in this industry.
 Spreading moments of joy and positivity: coca cola creates happiness and optimism
through its product as consumer utilise it for party and cheering purpose.
 wealth of stakeholders: maximizing profits and ensuring long term
 value standards: creating value towards the customers so that it could retain customer
loyalty.
 To be an effective and fast growing organisation: for sustaining in tomorrow's world
it is essential for the company to perform its operations effectively and efficiently.
LO 3
P4. Creating marketing plan
Marketing plan can be defined as blueprint that includes upcoming advertising, marketing
activities, marketing strategies for products provided by firm.
Importance
It is beneficial in order to avoided uncertainties. It is also helpful in knowing market positon of
organisation and developing ist positon as well.
Key Terms
Marketing Objective and Strategy –.
 Main objective of firm is to raise its profit by 30% till the end of 2019.
 To enter into New market within 6 month
Market Segmentation and Target
Segmentation allows the firm to choose correct audience on the bases of their specific
characteristic. Targeting is the people to whom firm aims to target.
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Situational Analysis –
It supports in analysing internal and external situation of business.
Resources allocation– It is systematic process of allocating resources well and manage it
properly in order to minimise wastage.
Marketing Plan
EXECUTIVE SUMMARY – Coco-cola has global brand presence and its profit is increasing
day by day. Now Coca-cola is launching a new product “STORM COKE”. Storm Coke is made
with the purpose of increasing the energy level of consumers.
Company information
Its main motive is to gain attention of mass audience and expand the business across the
world.
MISSION – Mission of coca-cola is developing healthy beverages. -
VISION – Its vision is creating such environment that may protect health of people.
OBJECTIVES -
 To increase the sale of “Storm” by 25% till the end of 2020.
 To increase the profit by 40% till the end of 2020. To increase the market share by 10% till the end of 2020.
SITUATIONAL ANALYSIS –
STRENGTHS
 Loyalty of buyers is main strong point
of business.
 Strong Distribution Network
WEAKNESSES
 High operational Cost
 Negative Publicity is drawback of
enterprise
OPPORTUNITIES
 Globalisation
 Technological advancement may create
opportunity
THREATS
 Heavy Competition
 Fluctuation is regulation and changing
economic condition.
MARKETING STRATEGIES –
Product Price Place Promotion People Process Physical
Evidence
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Coca-cola
launches
new product
name,
“Storm
Coke”. This
product is
different
from
another
product of
COKE
because it
will boost
the energy
of
consumers.
Here, Coca-
cola adopts
PENETRAT
ION
PRICING,
in which the
quality of
Storm Coke
is high and
Price is low.
This
strategy is
adopted
because
Coca-cola
wants to
gain market
share.
Consumer
can buy the
new product
from
various
locations
where Coca-
cola's other
products are
selling.
Coca-cola
do
promotion
of its new
product by
various
promotional
strategies
like
personal
selling,
advertising,
sales
promotion,
direct
marketing
and
publicity
etc.
It involves
the
management
of
employees,
managers,
leaders,
stakeholders
, creditors,
debtors, and
consumers.
For
employees,
Coca-cola
do
employee
entertainme
nt programs.
For end
users, Coca-
cola do
consumer
services
after sales.
It involves
the
activities,
procedures
etc. through
which the
products is
delivering to
the end
users. The
new product
is delivering
by indirect
distribution
channel
which
includes
various
intermediari
es like
whole seller,
retailers.
Physical
Evidence of
new product
will be red
tap on
bottles.
Bottles will
be made by
unique
metal which
can be
recycling.
STP STRATEGIES – It involves Segmentation, Targeting and Positioning strategies of New
product “STORM COKE”.
 SEGMENTATION STRATEGY – Coca-cola will adopt demographic segmentation, it
will target people on the bases of their age and gender. As young and small kid like to
have such products thus, demographic segmentation will be helpful in accomplishing its
objective successfully.
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 TARGETING – Coca-cola will adopt differentiated targeting strategy for its Storm Coke.
This will help in gaining attention of mass audience. POSITIONING – Cost positioning staretgy will be adopyted by coca-cola for its Storm
Coke.
Competitors
Nestle and PepsiCo are competitors of company. Changes in their strategies affect overall
working of Coca-cola.
Budget - The set budget is £130
Salaries £60.00
Marketing expenses £50.00
variable expenses £25.00
Total £135.00
Monitoring and Controlling – Coca-cola will do monitor the consumer reactions and consumer
satisfaction by conducting surveys and providing consumer services after using Storm Coke and
try to gain the feedbacks for its products. It will adopt test marketing and will look upon
revenues generated by company every moth in order to monitor and control over marketing
activities.
CONCLUSION
From the above study, it has been summarized that Marketing is an essentials and crucial
aspect for Coca-cola. Companies are required to make effective plan so that it can meet its
organisational goal successfully. Marketing mix helps company to identify the consumers, fulfil
consumers' demands and increase their market shares & profit.
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