Marketing Plan: Coca-Cola Amatil Analysis and Strategies

This marketing plan analyzes the current market conditions for Coca-Cola Amatil, including its competitors and their strategies. It provides a strategic marketing plan for the next two years, including a SWOT analysis that identifies strengths, weaknesses, opportunities, and threats. The plan outlines objectives to increase sales, expand market share, target new consumers, and increase profits. It also includes a detailed marketing analysis of the beverage industry in Australia, the company's market segments, and potential marketing opportunities. The plan proposes strategies such as cost leadership, value-based pricing, and market entry strategies. The plan also suggests launching new products and using quality positioning to differentiate the company from competitors, and a Gantt chart for implementation. The report recommends that Coca-Cola Amatil analyze foreign markets for expansion, while being aware of the associated expenses. The plan includes a budget allocation and performance review framework to guide the marketing plan's implementation.

Coca-Cola Amatil Marketing plan
Student’s name
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Coca-Cola Amatil Marketing plan
1. EXECUTIVE SUMMARY
This paper analyses the current market conditions under which Coca-Cola Amatil is
operating in, its competitors, their marketing strategies, and efforts. It then provides a marketing
plan that entails strategic marketing directions of the company in the next two years. The plan
also provides the firm's SWOT analysis in which it discusses the strengths, opportunities,
weaknesses, and threats the company is experiencing in its market structure. lastly, the plan gives
the allocating budget, development performance review, planning marketing tactics, and a Gantt
chart that will guide the marketing plan implementation. As per the report, international markets
analysis is also another marketing opportunity that the firm has to enjoy. Therefore, the report
recommends that Coca-Cola should greatly analyze the foreign markets to determine whether its
products can perform better there. This will greatly help the company as the additional
competitors is usually at growth stages hence cannot afford serving international, markets.
However, the company should be aware of the expenses it will be exposed to because of
operating in foreign markets.
2. INTRODUCTION
Coca-Cola Amatil(CCA) is the largest bottler of ready to drink beverages in Asia-Pacific.
The company serves six countries such as Fiji, Indonesia, Samoa, Australia, New Zealand, and
Papua New Guinea1. In 1972, Coca-Cola Amatil was included on the list of the Australian Stock
Exchange. At first, the company was dealing in tobacco. In 1964, it made its first foray in snacks
and soft drinks after it had bought Coca-Cola Company. Eventually, these products became the
1 Andini, R. A., & Simatupang, T. M. A process simulation of inventory planning and control for Minute
Maid Pulpy at Coca-Cola. International Journal of Logistics Systems and Management, 17(1), (2014). 66-82.

2
major focus of the company. 30.8% shares in the company are owned by the Coca-Cola
company2. Still, both Coca-Cola Company and Coca-Cola Amatil have joint ownership of Coca-
Cola Bottling Company established in Indonesia. Coca-Cola Amatil comprises of a variety of
products3. These include iced tea, energy drinks, flavored milk, sports drink, and so many others.
The company employs over 14700 people in all the six countries it distributes its products in.
Mission Statement
"To inspire moments of happiness and possibilities for young Australians."
Vision
 To create multiple moments of possibilities and happiness for the customers we serve, in
the community we operate in and for the stakeholders in our company.
Values
 We are always open and straightforward
 Our main focus is one today and tomorrow
 We get into the initiative and take responsibility of the outcome.
3. OBJECTIVES
To increase sales of our products: This will be attained through developing strategic marketing
directions since the sales for our products are most likely to decrease due to presence of
additional competitors in the market4.
2 Powell, D., & Gard, M. The governmentality of childhood obesity: Coca-Cola, public health and primary
schools. Discourse: Studies in the Cultural Politics of Education, 36(6), (2015). 854-867.
3 Andreyeva, T, et al. Grocery store beverage choices by participants in federal food assistance and
nutrition programs. American journal of preventive medicine, 43(4), (2012). 411-418.
4 Baah, S., & Bohaker, L. The Coca-Cola Company. Culture, 16, 17. (2015).

3
To expand our market share: Considering the fact that the new competitors in the market will
share the market share for our products. Then the marketing plan will aim at maintain the current
market share of the company as well as expanding it further in the next two years.
To target new consumers: Since the already available consumer base will be shared by the
additional competitors in the market, this marketing planning looks forward at attracting new
customers who can help the company increase its sales5.
To increase profits. Although this marketing planning aims at achieving all the above objectives,
its main objective is to increase profits for the company. This is because profits are the major
reason for operation of every business6.
4. MARKETING ANALYSIS
4.1 Planning marketing analysis
Coca-Cola Amatil is part of the beverage industry, which is one of the industries
experiencing stiff competition in Australia. Coca-Cola Amatil is the most significant competitor
in this industry. When combined with Schweppes, both companies take up a market share of
84%. However, there are also other strong competitors in the market such as PepsiCo, Kirks and
Golden Circle. The market size of the soft drinks industry is growing at a very fast rate. This is
accounted to the fact that soft drinks have always been the prime choice of consumers which are
bought at any time in any place. Currently, the market size of soft drinks is at USD 190.9.
According to Goldstein Research analyst, the market size is forecasted to reach 5813 million
dollars by 20257. The rate at which the soft drinks market is growing is mainly because of the
5 Brownell, K. D. et al. The public health and economic benefits of taxing sugar-sweetened beverages. New
England journal of medicine, 361(16), (2012). 1599-1605.
6 Carlon, S et al. How close are taxable income and accounting profit? An empirical study of large Australian
companies. In Australian Tax Forum (Vol. 28, No. 3, (2013, September). pp. 641-677).
7 Chappelow, J. Oligopoly. (2019). Retrieved from https://www.investopedia.com/terms/o/oligopoly.asp

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increase in the population, Gross domestic product of Australia, per capita consumer spending
and flavor developments as well as packaging. The soft drinks market structure in Australia is
characterized of several soft drinks with carbonated drinks taking up the largest market share of
over 43.1%. The market is divided up by soft drinks such as Lemonade, flavored mineral water,
fruit juices and other beverages. The company distributes its products through several
distribution channels. These include restaurants, movie theatres, grocery stores, convenience
stores, amusement parks and so many others.
The company operates in an oligopoly market structure. The nature of competition the
company is experiencing currently is still limited. However, emergence of additional competitors
in the industry will cause an increase in the competition. Today, Coca-Cola Amatil owns 67% of
the market share. The market of Coca-Cola Amatil is categorized into two segments8. This
includes the young people with ages ranging between 20 to 30 and the second segment
comprises of customers who are mainly interested in carbonated soft drinks. There are notable
barriers to entry in the industry, which are caused by higher levels of startup costs required to
start operation, strict government regulations on the beverage industry and patents as well as
copyrights.
4.2 Evaluation of marketing opportunities
The company can use several marketing opportunity options to achieve the set targets.
One of the marketing opportunity options is consumer segmentation. The customer base of the
company is divided into two segments. These include the health young people who prefer fruity
flavored drinks and energy drinks, and other customers who like carbonated soft drinks.
Additionally, the market is divided in to lovers of soft drinks and lovers of non-soft drinks. This
8 Chehtman, A. 8 Ways to Identify Market Opportunities for Business Growth. (2017). Retrieved from
https://blog.euromonitor.com/8-ways-identify-market-opportunities-business-growth/

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will help the company focus on serving the specific market segments it has. However,
concentration on production of carbonated soft drinks as the company is doing currently may
reduce its customer base for the young people9.
Another marketing opportunity is analyzing direct competition. Besides analyzing
purchasing and demand situations, the company should also analyze supply. Gaining extensive
knowledge about the number of players operating in the market is very important while
evaluating marketing opportunities. For example, competing of Coca-Cola Amatil with PepsiCo
and other companies helps the company to significantly position its brand. However, the
company should also be aware of the competition from the new emerging companies in the
industry10.
International markets analysis is also another marketing opportunity. Coca-Cola should
greatly analyze the foreign markets to determine whether its products can perform better there.
This will greatly help the company as the additional competitors is usually at growth stages
hence cannot afford serving international, markets. However, the company should be aware of
the expenses it will be exposed to as a result of operating in foreign markets.
4.3 SWOT Analysis
Strengths
 Coca-Cola Amatil is famously known for being the largest manufacturer and distributor
of beverages in Australia. Despite the fact that the new competitors in the market may
9 Clark, E. Sugar tax: Australia's sugary drink consumption more substantial than UK's. (2016). Retrieved from
https://mobile.abc.net.au/news/2016-03-17/sugary-drinks-tax-in-australia/7253896
10 Foster, R. J. Cocaâ€Globalization . John Wiley & Sons, Ltd. (2012).

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also employ extra efforts in gaining a large market share, consumers will still buy Coca-
Cola Amatil`s products because of its reputation in this market11.
 Coca-Cola Amatil comprises of a stable advertising brand marketing platform for its
products as compared to other brands in this industry. Considering the fact that the
company has already built a powerful brand in this particular industry, competing with
the new companies in the market will not be very difficult.
 The company developed a high brand value of 65,654 billion Australian dollars.
Weaknesses
 Manufacture of large numbers of carbonated drinks instead of energy drinks, which are
mostly preferred by the young Australians it serves, is a major weakness the company is
facing. This has reduced its market share for the targeted customer base hence being
taken up by the new competitors in the market12.
 The general performance of the company is hampered by the negative publicity. Publicity
is one of the factors that influence the performance of companies in the soft drinks
industry13. Having negative publicity will greatly cost the company especially in this
specific time when it is experiencing stiff competition from the additional competitors in
the market.
Opportunities
 The rapidly growing level of the beverages industry is a great opportunity for the
company. Despite the increase in the number of companies competing for the available
11 Freeman, B., Kelly, B., Baur, L., Chapman, K., Chapman, S., Gill, T., & King, L. Digital junk: Food and beverage
marketing on Facebook. American journal of public health, 104(12), (2014). e56-e64.
12 Metzger, K. The Import of Culture? The Coca Cola Company in America and Australia. (2014).
13 Wade, G. Issues in Australian Foreign Policy January to June 2014. Australian Journal of Politics & History,
60(4), (2014), 606-620.

7
market share, the company will be able to maintain or even improve its market share due
to the development of the industry it is operating in.14
 Coca-Cola Amatil distributes energy drinks and fruity drinks which are highly preferred
by the young customers. This will help the company since its target market are the young
Australians.
 The production costs of manufacturing beverages are also decreasing. This a very vital
opportunity for a company like Coca-Cola Amatil which has spent over 50 years in the
industry. The company can implement all marketing strategies, which can still make it
remain in production and as well out compete the new companies15.
Threats
 The present generation of the young Australians prefers energy drinks instead of
carbonated drinks, which the company is mainly focusing on. This is attributed to the
higher levels of calorie, which are caused by carbonated drinks.
 The company is already facing stiff competition from other beverage companies such as
PepsiCo. Joining of other companies will further expose the company to stiff competition
hence reduction in its market share.
5. DEVELOPING MARKETING STRATEGIES
5.1 Developing Strategies
14 Mitchell, S. "Coca-Cola Amatil profit up as water sales offset weak soft drink demand". The Sydney Morning
Herald. (2016).
15 Patrick Hatch "Indonesian hiccup for Coca-Cola Amatil after US move". Sidney Morning Herald. Retrieved 1
November 2018. American group The Coca-Cola Company owns 30 per cent of the ASX-listed Coca-Cola Amatil
(CCA), and the two companies are joint owners of Coca-Cola Bottling Indonesia (CCBI). (1 November 2018).

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Cost leadership strategy will be used for both marketing and carrying out international
business16. This type of strategy advocates for attaining competitive advantage as a result of
incurring lower costs of production. Costs are usually removed from each of the value chain link
including production, wastages, marketing, and others. Despite the costs, products will still
impose the same prices for its products like the ones charged by other companies. However, due
to low costs incurred in the production process, Coca-Cola Amatil will have the ability to
continue production even in the lean times and will as well invest more in the production of its
products. With the implementation of the cost leadership strategy, the company will be able to
define its objectives as well as the means through which it can achieve them with the level of
strategic management it will be using17. Value-based pricing will be used. This type of pricing
strategy entails setting a price for the products depending on the worth of the products being
sold. Considering the fact that Coca-Cola Amatil has already developed customer loyalty among
its customers, the already available customers will remain buying the products, and they will also
attract others to buy the products18.
Young people are the target market. To obtain our target market, market entry strategy
will be used. With the help of this strategy, we shall be able to strategically plan on how we shall
distribute and deliver our products to the new target market we will be serving since the new
competitors in the market would have reduced the old target market. Following the already set
goals, we shall research on the nature of the market we are targeting, study the prevailing
competition in that particular market and then select the most strategic mode of entry in that
16 Our Brands. Ccamatil.com. Retrieved 11 August 2016, (2016). from https://www.ccamatil.com/en/our-businesses-
and-brands/our-brands
17 Powell, D., & Gard, M. The governmentality of childhood obesity: Coca-Cola, public health and primary schools.
Discourse: Studies in the Cultural Politics of Education, 36(6), (2015). 854-867.
18 Wade, G. Issues in Australian Foreign Policy January to June 2014. Australian Journal of Politics & History,
60(4), (2014), 606-620.

9
market. We shall also use the quality positioning strategy to help us different ourselves from the
additional competitors in the market. Under this strategy, we shall use exceptional raw materials
as try as much as possible to minimize defects19. Defects are some of the major factors that
destroy the credibility of the company in the marketplace. The company will invest more in
procedures and operations that can facilitate creation of high quality products. The company will
launch several products in the new target market. These include sports drink, fruit juices and
energy drinks which are mostly preferred by the young people. These products are very good
sources of vitamins and as well provide boost an individual`s body especially energy drinks. The
company will have to invest more in packaging to differentiate its products from the products of
its competitors. Considering the fact that most of the competitors use glass bottles, the company
will introduce plastic bottles, which can as well be used as disposables.20
A communication strategy will be developed to ensure effective communication of the
marketing plan objectives to the team responsible for implementing it. It will also be used in
facilitating marketing as well as public relations.21 It will mainly focus on communicating the
objectives of the plan, the target market, and the channels to be used to reach the target market22.
Various media platforms such as televisions, social media, radios, and others will be used to
ensure effective communication.
5.2 Allocating Budget
19 Rose, J. 8 Strategies That Offer High Return with Low Risk. (2016). Retrieved from
https://www.forbes.com/sites/jrose/2016/06/23/8-strategies-that-offer-high-return-with-low-risk/#eec80d32ac29
20 Rose, J. 8 Strategies That Offer High Return with Low Risk. (2016). Retrieved from
https://www.forbes.com/sites/jrose/2016/06/23/8-strategies-that-offer-high-return-with-low-risk/#eec80d32ac29
21 Terpstra, M., & Verbeeten, F. H. Customer satisfaction: cost driver or value driver? Empirical evidence from the
financial services industry. European Management Journal, 32(3), (2014), 499-508.
22 Spacey, J. 4 Examples of a Communication Strategy. (2019). Retrieved from
https://simplicable.com/new/communication-strategy

10
Marketing Strategies Resources Budget
Cost leadership strategy Finance department of
the company
$200000
Quality Positioning strategy Finance department of
the company
$150000
Communication strategy Finance department of
the company
$100000
Value-based pricing strategy Finance department of
the company
$5000
TOTAL $500000
6. DEVELOPING PERFORMACE REVIEW
KPI Target/ Expected Outcomes Marketing Objectives it
fulfils
Sales revenue $6 billion To increase sales of our
products
Leads 1000 leads per month To expand our market share
Customer acquisition cost $700 million To target new consumers
Inbound Marketing ROI 20% To increase profits
7. PLANNING MARKETING TACTICS
7.1 Tactics Table

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Marketing
Strategy
Tactics
employed
Justification
(capacity and
budget)
Legal/Ethical
requirements
Personnel
responsibilities and
accountabilities
Cost leadership
strategy
Charging
slightly lower
prices from
products
Profits realized will
be reduced to
cater for the
production costs
Competition
and
Consumer Act
2010
Marketing manager to
supervise and report
progress of the
strategy
implementation
process
Quality
Positioning
strategy
Quality check-
points at every
production
level and use
of exceptional
raw materials
Standardized raw
materials can
enhance product
quality.
The checkpoints
will ensure that at
every stage, the
minimum required
products standards
are met.
Competition
and
Consumer Act
2010
Production manager
to supervise and
report progress of the
strategy
implementation
process
Communication
strategy
Apps usage
and instant
responses on
web portals
Apps can be
created and placed
on app stores for
users to download
All products will be
marked with the
official site of the
company
Competition
and
Consumer Act
2010
Communications
manager to supervise
and report progress of
the strategy
implementation
process
Value-based
pricing strategy
Branding The production
department can
allocate part of its
budget to the
branding activity to
add value to the
products
Competition
and
Consumer Act
2010
Sales and marketing
managers to
supervise and report
progress of the
strategy
implementation
process
7.2 Coordination methods
The daily activity sheets will be distributed to each department to report the daily
progress to their respective supervisors. Afterwards, the supervisors will be asking weekly
reports to the general managers with recommendations for improvement.

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7.3 Gantt Chart
TIMELINE
Marketing Tactics 1 2 3 4 5 6 7 8 9
App development
 
Price fixing
 
App development and
testing
  
Response rate check
  
Branding
  
Grand marketing
Campaign

8. CREATING A FEEDBACK FORM
COCA-COLA AMATIL MARKETING PLAN STAKEHOLDERS’ FEEDBACK FORM
Marketing Plan
overview
Coca-Cola Amatil(CCA) is the largest bottler of ready to drink
beverages in Asia-Pacific. The company serves six countries such as,
Fiji, Indonesia, Samoa, Australia, New Zealand, and Papua New
Guinea. The company carries out its operations in the soft drinks
industry which is one of the industries experiencing stiff competition in
Australia. Coca-Cola Amatil is the most significant competitor in this
industry. There is need to adopt a marketing strategy that will win a
competitive advantage over the competitors.
Please present your feedback/rating on the following sections of the marketing plan
Section Points awarded (10
maximum)
Comments / recommendations for
improvement
Planning marketing
analysis
Evaluation of
marketing
opportunities
SWOT Analysis

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Developing Strategies
Allocating Budget
DEVELOPING
PERFORMACE
REVIEW
PLANNING
MARKETING
TACTICS
Tactics Table
Coordination methods
Gantt Chart

14
9. Bibliography
Andini, R. A., & Simatupang, T. M. A process simulation of inventory planning and control for
Minute Maid Pulpy at Coca-Cola. International Journal of Logistics Systems and
Management, 17(1), (2014). 66-82.
Andreyeva, T, et al. Grocery store beverage choices by participants in federal food assistance
and nutrition programs. American journal of preventive medicine, 43(4), (2012). 411-418.
Baah, S., & Bohaker, L. The Coca-Cola Company. Culture, 16, 17. (2015).
Brownell, K. D. et al. The public health and economic benefits of taxing sugar-sweetened
beverages. New England journal of medicine, 361(16), (2012). 1599-1605.
Carlon, S et al. How close are taxable income and accounting profit? An empirical study of large
Australian companies. In Australian Tax Forum (Vol. 28, No. 3, (2013, September). pp.
641-677).
Chappelow, J. Oligopoly. (2019). Retrieved from
https://www.investopedia.com/terms/o/oligopoly.asp
Chehtman, A. 8 Ways to Identify Market Opportunities for Business Growth. (2017). Retrieved
from https://blog.euromonitor.com/8-ways-identify-market-opportunities-business-
growth/
Clark, E. Sugar tax: Australia's sugary drink consumption more substantial than UK's. (2016).
Retrieved from https://mobile.abc.net.au/news/2016-03-17/sugary-drinks-tax-in-
australia/7253896
Foster, R. J. Cocaâ€Globalization. John Wiley & Sons, Ltd. (2012).

15
Freeman, B., Kelly, B., Baur, L., Chapman, K., Chapman, S., Gill, T., & King, L. Digital junk:
Food and beverage marketing on Facebook. American journal of public health, 104(12),
(2014). e56-e64.
Metzger, K. The Import of Culture? The Coca Cola Company in America and Australia. (2014).
Mitchell, S. "Coca-Cola Amatil profit up as water sales offset weak soft drink demand". The
Sydney Morning Herald. (2016).
Our Brands. Ccamatil.com. Retrieved 11 August 2016, (2016). from
https://www.ccamatil.com/en/our-businesses-and-brands/our-brands
Patrick Hatch "Indonesian hiccup for Coca-Cola Amatil after US move". Sidney Morning
Herald. Retrieved 1 November 2018. American group The Coca-Cola Company owns 30
per cent of the ASX-listed Coca-Cola Amatil (CCA), and the two companies are joint
owners of Coca-Cola Bottling Indonesia (CCBI). (1 November 2018).
Powell, D., & Gard, M. The governmentality of childhood obesity: Coca-Cola, public health and
primary schools. Discourse: Studies in the Cultural Politics of Education, 36(6), (2015).
854-867.
Rose, J. 8 Strategies That Offer High Return with Low Risk. (2016). Retrieved from
https://www.forbes.com/sites/jrose/2016/06/23/8-strategies-that-offer-high-return-with-
low-risk/#eec80d32ac29
Spacey, J. 4 Examples of a Communication Strategy. (2019). Retrieved from
https://simplicable.com/new/communication-strategy

16
Terpstra, M., & Verbeeten, F. H. Customer satisfaction: cost driver or value driver? Empirical
evidence from the financial services industry. European Management Journal, 32(3),
(2014), 499-508.
Wade, G. Issues in Australian Foreign Policy January to June 2014. Australian Journal of
Politics & History, 60(4), (2014), 606-620.
Wedel, M., & Kamakura, W. A. Market segmentation: Conceptual and methodological
foundations (Vol. 8). Springer Science & Business Media. (2012).

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10. Appendix
Products
More information about company

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