Marketing and Management Report: Coca Cola Amatil in Australia

This report provides a comprehensive analysis of the marketing and management strategies employed by Coca Cola Amatil in Australia. It begins with an overview of the company and its industry, including a Porter's Five Forces analysis. The report then delves into the 5Cs framework (Company, Customer, Collaborators, Competitors, and Context) to understand the organization's environment. It explores the methods used by Coca Cola Amatil to gather information about its 5Cs, including market research, customer surveys, and competitor analysis. Based on this analysis, the report develops a marketing strategy, including the identification of potential target markets, a value proposition, and a positioning statement. Finally, the report outlines a marketing mix (7Ps) for Coca Cola Amatil, covering product, price, place, promotion, people, processes, and physical evidence. The report concludes with a summary of key findings and recommendations for the company's future marketing efforts.

Running head: MARKETING AND MANAGEMENT
Marketing and Management
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Executive Summary
Marketing management is the application of tracking and reviewing marketing resources and
tactics of an organization towards achieving its success. The study has explored the marketing
management of Coca Cola Amatil in Australia. The study has been organized into five issues. In
issue 1, the study has described brief summary of the organization and the industry in which it
operates. Apart from that, the study has described 5Cs of the organization in terms of customers,
competitors, collaborators, company and context. The study has also explored several ways in
terms of market research and market intelligence towards gathering information about their 5Cs.
The study has also developed marketing strategy for the organization based on the analysis. It
has defined the quality standard of the beverage drinks of Coca Cola Amatil. Apart from that, the
study has also developed marketing tactic for the organization through 7Ps. It suggests that the
organization should use affordable price for the non-alcoholic beverage products, water and hot
beverages.

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Table of Contents
1.0 Introduction................................................................................................................................3
2.0 Issues 1: Organization and Industry Overview..........................................................................3
2.1 Description of Coca Cola Amatil..........................................................................................3
2.2 Industry Analysis...................................................................................................................5
2.3 Mission Statement and Value Statement...............................................................................7
2.4 Marketing Orientation...........................................................................................................8
2.5 Description of Products.........................................................................................................9
2.6 Role of Brand in Marketing Strategy.....................................................................................9
3.0 Issue 2: 5Cs Analysis...............................................................................................................10
3.1 Company..............................................................................................................................10
3.2 Customer..............................................................................................................................10
3.3 Collaborators........................................................................................................................11
3.4 Competitors..........................................................................................................................11
3.5 Context.................................................................................................................................11
4.0 Issue 3: Collection of Information...........................................................................................12
4.1 Collection of Information of Customers..............................................................................12
4.2 Collection of Information of Competitors...........................................................................12
4.3 Collection of Information about Changing Business Context.............................................13
4.4 Collection of Information about Role of Collaborators.......................................................13

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5.0 Issue 4: Developing Marketing Strategy.................................................................................13
5.1 Potential Target Market.......................................................................................................13
5.2 Value Proposition................................................................................................................15
5.3 Positioning Statement..........................................................................................................16
6.0 Issue 5: Marketing Mix............................................................................................................17
6.1 Product.................................................................................................................................17
6.2 Price.....................................................................................................................................17
6.3 Place.....................................................................................................................................17
6.4 Promotion............................................................................................................................17
6.5 People..................................................................................................................................18
6.6 Processes..............................................................................................................................18
6.7 Physical Evidence................................................................................................................18
7.0 Conclusion...............................................................................................................................18
Reference List................................................................................................................................20

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1.0 Introduction
Marketing management defines the organizational disciplines inside an organization. It
focuses on the marketing orientation, technique and other methods, which are highly required for
achieving organizational goals (Hutchinson et al. 2015). The study will discuss the marketing
and management of Coca Cola Amatil in Australia. In issue 1, the study will provide a brief
description of the organization and its industry. In issue 2, the study will analyze the 5Cs of the
organization. Apart from that, the issue 3 of the study will describe the ways in which the
organization collects information about their 5Cs. Based on the analysis; the study will develop
potential target market, value proposition and positioning statement in issue 4. Furthermore, the
study will also develop marketing tactics for the organization in terms of 7Ps of Marketing.
2.0 Issues 1: Organization and Industry Overview
2.1 Description of Coca Cola Amatil
Founded on 1904 with headquarter in New South Wales (NSW), Coca Cola Amatil
(CCA) has expanded in most of the Asia-Pacific regions including New Zealand, Fiji, Papua
New Guinea, Indonesia and Samoa. CCA operates in beverage industry and is a public listed
company with products ranging from non-alcoholic drinks to ready-to-eat fruit and vegetable
items. A$5.12 billion was its revenue and A$79.9 million was its profit in the year 2014, which
made it among the top five listed companies in Australia (Ccamatil.com 2017).

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Figure 1: Coca Cola Amatil Earning Breakdown
(Source: Ccamatil.com 2017)

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Figure 2: Coca Cola Amatil Divisional Profit
(Source: Banterle et al. 2014)
Figure 2: Coca Cola Amatil Market Volume Composition
(Source: Mialon et al. 2016)
2.2 Industry Analysis
The beverage industry of Australia can be analyzed through Porter’s Five Force:
Factors Explanation
Bargaining power of Supplier  Low bargaining power due to plenty of suppliers
 Big market players are the key clients for suppliers
 Suppliers are neither differentiated or concentrated
Bargaining power of Buyer  High bargaining power from huge availability of soft-drinks
 Bargaining power tends to decreasewith increase of end
consumer brand loyalty

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Market Competition  Tremendous market competition with key players such as
Coca Cola Amatil,Pepsico, Schweppes, Kirks, Nudie Foods
Australia, Nestle Waters and Dr Pepper Snapple Group
Threat from Substitute  Local firms delivering new flavors of energy drinks such as
juice, soda and drinks items
 Price offered by new firms are quite lower then big players
Threat from New Entrants  High threat from supermarket local brands such as
Woolworths and Coles
 Relatively low barriers for new entries due to zero capital
requirement and less consumer switching
Table 1: Porter Five Force Analysis
(Source: Externally 2017)

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Figure 4: Porter Five Forces Model
(Source: Kerr and Patti 2015)
2.3 Mission Statement and Value Statement
CCA mission statement is:
“To create millions of moments of happiness and possibilities for our customers,
communities and shareholders”
The statement indicates that CCA tries to ensure satisfaction for its stakeholders, which
would in turn help in earning happiness.
CCA value statement is:
 We are open and straightforward We focus on present and future
 We create initiative and achieve the outcome

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2.4 Marketing Orientation
According to Vanharanta, Chakrabarti and Wong (2014), marketing orientation
comprises of customer orientation, competition orientation and inter-functional
coordination.CCA offers soft-drinks with differentiated carbon and sugar content so that both
health conscious and casual market segments are addressed. In this way it has able to create
sustainable market position. Considering customer orientation, CCA has targeted age segment
from 13 to 75, low to high income range, health conscious and even corporate sector consumers.
Both suppliers and investors are its prime internal coordination stakeholders. Long-term
relationship is kept with beverage suppliers and strong short-term relationship with Digital
advertisement partners.
Figure 5: Marketing Orientation
(Source: Weaven et al. 2014)

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2.5 Description of Products
The diversified product portfolio of CCA includes soft drinks, energy drinks, sports
drinks, spring water, flavored milk, fruit juices, tea, coffee and ready-to-eat fruit and vegetable
snacks. The Small Business Units (SBUs) of CCA are water, alcoholic beverage, non-alcoholic
beverage, hot beverage and food. Most of the products are of high sugar and carbon content in
beverage category and its water category is gaining rapid market share (Hingley, Angell and
Campelo 2015).
2.6 Role of Brand in Marketing Strategy
According to Viio and Grönroos (2014), CCA offers wide range of items and most of
those are good in quality, however the taste is quite similar to other alcoholic beverage brands.
Therefore, CCA needs to classify its brand and increase brand loyalty through enhanced
marketing strategy so that customer pool can be retained in future. Therefore, branding will help
in customer retention, accelerated sales and earning revenue, which will eventually help in
developing other business units.

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3.0 Issue 2: 5Cs Analysis
3.1 Company
Coca Cola Amatil has wide range of non-alcoholic beverage drink products, which meets
the various kinds of needs of the customers. Ardjouman and Asma (2015) opined that high
quality of the beverage drinks has added to the organizational strength of Coca Cola Amatil.
High brand reputation of Coca Cola Amatil attracts huge customers groups. Furthermore, wide
distribution network and increasing global presence of Coca Cola Amatil has ultimately
increased its overall sales volume. On the other hand, Coombes and Nicholson (2013) opined
that Coca Cola Amatil has lack of health beverages, which limits its business success. The
organization has huge opportunity towards diversifying its product line towards health beverages
and food products. However, Coca Cola Amatil faces tough competition in the marker from the
companies like Pepsico, Inc, Nestle, Lion Dairy and Drinks.
3.2 Customer
Coca Cola Amatil serves the customers, who have high refreshing needs. The
organization has targeted highly health conscious people. Moreover, it used low sugar level in
their drink categories. While considering the typical behavior of the customers, it can be seen
that most of the customers demand highly quality beverage drinks from Coca Cola Amatil. The
customers mostly purchase the products of Coca Cola Amatil from either retail stores or grocery
shops (Eng and Ozdemir 2014). However, the changing needs and preferences of the customers
towards health drinks seem to be threats on the organization.