Marketing Planning Process and PESTLE Analysis for New Soft Drink by CocaCola

This report discusses the marketing planning process and PESTLE analysis for CocaCola's new soft drink. It covers the importance of using marketing orientation in the organization and the 7Ps model for effective marketing planning. The report also explores the segmentation for B2B and B2C markets and the primary target of the new product in terms of features, demographics, benefits, behavioral, and lifestyle of the customer.

Principles of
Marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
SECTION – 1...................................................................................................................................3
Marketing planning process components and importance of using marketing orientation in
the organisation......................................................................................................................3
PESTLE analysis for new product and micro environment factors with reference to the
activities of the competitors....................................................................................................5
Importance of 7Ps model for effective marketing planning..................................................6
SECTION – 2 ..................................................................................................................................7
Segmentation for new soft drink for B2B and B2C market and it's differentiation..............7
Methods of targeting B2C market and primary target of new product in terms of features
including Demographics, benefits, behavioural and lifestyle of the customer.......................8
Meaning of positioning and How this new soft drink would be positioned in the mind of
customers................................................................................................................................9
SECTION – 3 ................................................................................................................................10
Table format design for 7P's of marketing mix with references to the new soft drink product.
..............................................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Principles of marketing are crucial for developing relationships with pre existing users
and for expansion of reach to new and potential users. (Ferrell, Hartline, and Hochstein,
2021)Principle of marketing help in identifying how to better marketing activities in addition to
getting to know taste and preferences of customers. The company chosen for the purpose of this
report is CocaCola which was started in 1886 when John Pemberton served the first batch in a
pharmacy situated in Atlanta, Georgia its also the place where the company headquarters are
located according to company website. In the contemporary times people are getting more and
more conscious about their health. To exploit this opportunity Cocacola has come up with new
healthy soft drink which contains fibres. The report below brings out plans which needed to
effectively market their new product. PESTLE analysis of new beverage is conducted in report
below in addition to bringing out the 7p's of product.
SECTION – 1
Marketing planning process components and importance of using marketing orientation in
the organisation.
Marketing planning process is a systematic way to develop objectives, making schemes
and implementation business operations. It's purpose is to determine the necessity and
preferences of the end-user for gaining acceleration and diversification in revenue stream.
Elements of marketing planning process
 Market inquiry – Market inquiry the foundational and therefore very essential element
of the entire process. For identification of needs and gathering data about potential
customers, size of the market, gaining insights into current and future market trends.
(Palmatier and Crecelius,2019) Market inquiry is crucial for gaining the above data.
CocaCola does the market inquiry process through its R & D department.
 Targeting apropriate market – The enterprise needs to gather where the product will
be put up and what demography of people are going to be targeted for marketing.
Cocacola's target demography is Young people living in urban areas.

 Product – The commodity purported to be sold should align with what the market
inquiry revealed as needed and preferred by the end users.(de Sousa and Castañeda-
Ayarza 2022). Cocacola launches new flavours after conducting market analysis.
 Competition – An enterprise should be aware of the commodities directly in
competition with their own commodity, so that they are sufficiently able to distinguish
their product from the competition. Cocacola has unique bend of flavour which is often
marketed.
 Mission statement – It includes outlining the roadmap through which goal of the
organisation can be met. The mission statement reflects demography to whom the
commodity is marketed by accounting for their taste and preference. Cocacola's mission
statement is “ To inspire moment of optimism and happiness”.
 Market strategies – Just manufacturing some commodities does not suffice. An
enterprise has to inculcate trust and create brand awareness among its potential
customers. They can promote the commodity by using various transmission techniques.
Coca cola uses Adverts, Direct marketing, Pushing ads on internet and various other
methods to promote its product.
 Valuation – The Price of commodity should be such that end users find value while
balancing the need of revenue for the enterprise. Cocacola sells its product according to
quantity, pet bottle costs relative to quantity than bigger bottles.
 Funds – Any enterprise has to set aside how much they want to spend on acquiring
customers. It has to decide whether they are sufficiently equipped to deal with marketing
or they require some help from marketing companies which requires more funds.
Cocacola spends a significant portion of their revenue in acquiring customers, while
using the marketing teams of their own company and outside help.
 Marketing milestones – The milestones set to be achieved should be outlined
beforehand. Set milestones should help the company to efficiently shore up its revenue
stream. Cocacola wants to provide quality beverages at nominal rates to end users across
the globe. Due to selling worldwide they can reap the benefits of economies of scale and
cut down cost.

 Assessment At this stage management should asses as to what works and what doesn't
and find out reasons for the plans that don't pan out. (İpek, 2020) Cocacola uses big data
analytics to gain insights into its marketing strategy.
Value of adopting marketing orientation
 Revenue maximization– orientation outlines the taste and preference prior to a particular
commodity being put into production. By accounting for demand and preference they are
likely to maximize the revenue when they start producing the commodity.
 Acquisition – When demand, preferences and target demography is accounted for
customers are relatively easily acquired rather than poring lot of money into customer
acquisition.
 Brand awareness and fidelity – Marketing orientation keeps its focal point on satiating
end user, which in turn results in end users holding the brand in high regard and being
loyal toward the brand.
PESTLE analysis for new product and micro environment factors with reference to the
activities of the competitors.
PESTLE analysis reveals the important elements which have a bearing on the operational
capability of any enterprise be it internal of external to the company. These elements for coca
cola are provided below.
 Political aspect – Some government may take an hostile approach towards any business
due to variety if reasons.(Nurmi, and Niemelä, 2018) In the case of cocacola it has often
been in the cross-hairs of various government due to its sugary nature, some countries
have restricted the products which contain excessive sugar due to which sales of cocacola
are suffering.
 Economic aspect –These aspects relate to the stage through which economy is rolling. If
recessive conditions are prevailing in the economy people are less likely to have
disposable income they can use to buy commodities.(Roy,and Chowdhury, 2021).
Cocacola being a multinational company is not very much affected by economies of
individual nations.
 Social aspect – These relate to the prevailing sentiment towards a commodity in the
market, nowadays people are more focussed on what they put into their bodies as a result

carbonated drinks demand is decreasing. Cocacola markets it commodity as being healthy
for consumption to increase sales.
 Technological aspects – These factors pertain to there being new technoly which could
help businesses in cutting down cost of inputs. Cocacola uses state of the art tech to
churn out more commodities in relatively fewer time whilst being cost effective.
 Environmental factor – These pertain to conditions of the environment which make
doing business either conducive or unfavourable. Cocacola uses glass bottles which can
be recycled together with recycling plastic waste to mitigate its footprint on the
environment. Legal factor – The relate to various rules and regulation that have to be complied with by
any enterise in order to ensure compliance and not incur costs due to fines.(Madsen, and
Grønseth, 2022) Cocacola has a dedicated compliance team to ensure that they obey all
the rules and regulations.
Micro environmental factors
 Rivals – Cocacola has lot of business rivals such as pepsi and others. Moreover there are
lot of products which could substitute the need for the commodities sold by cocacola. To
contend with these rival the company has to derive distinction to say to end users that
their product is unique.
 Providers – Coca cola sources inputs from large number of providers around the globe.
Due to high demand of inputs by cocacola and multinational operation they can bargain
easily. If they were restricted to one nationality or had dearth of suppliers it would
become very hard to bargain with input providers.
Importance of 7Ps model for effective marketing planning.
 Commodity development – Enterprises can gain insights into prevailing market
conditions and thereby develop commodities according to the preferences of end users.
 Distinction – Enterprises gain insights which pertain to their potential customers using
marketing mix. This can help them in making their commodity distinct and thereby gain
competitive advantage.(Novela, and Hansopaheluwakan, 2018)
 Business transformation – This can transform the landscape of modern business by
bringing out the gaps which need to be plugged.

 Development of product portfolio – Through marketing mix it can be analysed whether
some commodity sold by the enterprise is creating liabilities. So either they could be
improved or not produced any more.(Dewi, Hendriyani, and Ramdhani, 2021)
SECTION – 2
Segmentation for new soft drink for B2B and B2C market and it's differentiation.
Segmentation pertains to division of the market under various heads in accordance with
their characteristics.
Business to customer (B2C) – This method connotes enterprises selling their commodity in a
direct manner to other customers.
Business to Business (B2B) – When an enterprise sells or purchases from another enterprise it is
referred to as business to business transfection.
Basis Business to Business (B2B) Business to Consumer (B2C)
Qauntity Cocacola sells it commodities
to other enterprises in huge
quantities which after buying
the commodity distribute it for
profit.
Cocacola when directly selling
to end users gain revenue unit
by unit as the user only buy the
product as and when they need
it.
Time period Cocacola form contracts with
other enterprises which
outlines their purchase order
and compensation in case
when they cancel their order.
This contract's durations is
decided after which they
enterprise are no longer
obligated to buy their
commodities.
In this case no contract is
formed with the company. The
end users buy the product off
the shelves according to their
needs and instantly pay the
distributor. No obligations
arise if they don't want to buy
the product.
Cost The cost incurred by Cost incurred by end users are

enterprises is relatively low
Since they buy huge quantities
and sell it for profit.
very high relative to business
buying it since they only buy
little quantities and are not
obligated to buy the product.
Methods of targeting B2C market and primary target of new product in terms of features
including Demographics, benefits, behavioural and lifestyle of the customer.
Targeting pertains to isolating specific end users who are most likely to buy
commodities or services offered by an enterprise. (Badilla, 2022)
There exists 3 specific methods through which Coca cola is able to acquire customers:
 Lucrativeness – The enterprises have to account for the particular need and preferences
of end users while concocting a new commodity.(Sharma, Kaur,and Syan,2021) If
sufficient demand exists for a commodity then end users are likely to pay the price
determined by company due to which the product becomes lucrative commodity to sell.
Cocacola has identified that people belonging to affluent income group tend to be
focussed on their health and thereby don't buy their products. So they have come up with
healthier options which are sold at high profit margin.
 Size – An enterprise should be aware of the approximate amount of people that will be
needing their commodities along with which people are likely to be repeat customers.
Cocacola has to gather how many people are looking for a healthier beverage alternatives
even if the amount of people is not big they could still belong to higher income groups
which means they would be willing to pay way more. Reach – Since people differ in their preference and purchasing power they need to be
clubbed or distinguished accordingly. After which they can sensibly gather which group
has the highest number of people or can pay the most in order to develop commodities in
accordance with their specific taste.
Characteristics for targeting end users
 Lifestyle –The end users can be arranged in accordance with their standards of life and
incomes. The end users which are purported to be targeted by new commodity of healthy
drinks are very high earners and have high standards of life so they can afford to pay high

prices. The company can bank lot of profit despite the size of market being relatively
small.
 Demographics – This category connotes division on the basis of age, sex, locality, and
type of work that the end user do. Cocacola has accounted for locality and age whilst
rolling out new beverage. The targeted group according to age are those between 15 to 50
years. Locality is mainly metropolitan areas where high earners live.(Dewayana, 2018)
 Benefit – Targeted end users are all health conscious who are very careful about the thing
they put into their stomachs. They are willing to pay a premium for commodities which
could be considered healthy. So cocacola can bag higher profits per unit sold.
 Behavioural –In this category end users are arranged according to their purchase
behaviours. what they are most likely to have daily need for or their perception and
conduct. Cocacola has recognised that in modern times being health conscious is very
normal so they have come up with healthier product called “cocacola plus”.
Meaning of positioning and How this new soft drink would be positioned in the mind of
customers.
Positioning connotes constructing an image in brains of end users about the brand Its the
last stage of STP model which is adhered to by coca cola which retaining a position in the minds
of the end users the following measures are adopted:
 Identifying end user – The preliminary stage to construct a reflection of brand in brains
of end user is to outline their demand. So as to develop commodities according to their
demand. Cocacola had previously identified customers to be sugar conscious so they
created sugar free drink and now they have created Coca-cola plus to appeal to health
conscious end users.
 Rival assessment – An enterprise needs to outline their competitors in the market to
asses feasibility of the new commodity. If there are some rivals then the company can try
to make themselves sufficiently distinct from the rivals .
 Assessment of end user –The patterns which exists when the end users make purchases
and their conduct is assessed at this stage. Coca cola had determined that end users
buying healthy belong to high income groups so they target them only.

 Crystallizing position- The transmission methodology which is adopted by the
enterprise to market the product is pondered upon in this stage Cocacola used various
methods such as digital and physical marketing.
 Observing position – In this stage the implemented plan of action is observed to identify
and straighten out any kinks. Cocacola uses various instrument and performance
indicators in this stage.
SECTION – 3
Table format design for 7P's of marketing mix with references to the new soft drink
product.
New Soft Drink Product
Product It refers to the commodity itself,coca cola plus a diet variant of the soft
drink Coca-Cola with added dietary fibre in the form of dextrin.
Place This pertains to the particular geography or places with that geograpgy
in which the commodity is sold. Cocacola sells it across various retail
chains, cinema place and shopping malls. They also sell their
commodities through online platforms.
Price Its the value at which end users purchase the product. The value of the
product depends upon its perceived value to end users while balancing
costs of manufacturing, marketing and distribution. Coca cola mainly
serves this new product to high end consumers willing to pay a
premium. Whilst inferior products which are not derived from health
based considerations are sold cheaply to low income group members of
society.
Promotion This aids in portrayal of positive reflection in the brain of end user.
Cocacola uses various strategies while promoting their products. They
offer reduced rates to customers online as they do not have to incur
distribution costs. For promotion they also have somewhat of lottery
system, if code on the customers bottle matches with the winning code

then customers can claim rewards in form of cash benefits.
People The paramount asset with any company is their workers and the most
crucial people for the workers are the consumers. Cocacola hires and
retains talented individuals who are exceptional at customer handling
so that they can retain customers who are loyal toward the company.
(Sulistyo, 2021) For smooth execution of various plans made by the
company they train the employees accordingly so that they are able to
efficiently do their job.
Packaging Its how product is presented to the customer in addition to how the
offices or stores look to customers. Every thing which is presented to
the customer, brochures, adverts even sales person should be presented
in line with how company wants the customers to perceive its product.
Cocacola has very premium packaging for it new healthy soft drink as
it is geared towards high end consumers.
Positioning The position which is held by the company in the brain and heart of the
people in conjunction with the position in market. What attributes do
the people attach to the product and the company. Cocacola is fairly
well positioned inside people hearts and brains.
CONCLUSION
From above report it can be deduced that marketing assists in bringing out the taste and
preference of the customer. Plan of action for marketing aids in forming effective strategies prior
to rolling product out in-front of customers. PESTLE analysis guides decision makers in
navigating through crisis and opportunities which exists in modern business decision making.
The 7p's of marketing aids enterprises in reviewing and defining central issues which affect the
marketing of its products and services. The STP model assists an enterprise to position a
commodity or service in order for effectively targeting various groups of end users.

REFERENCES
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