Marketing Essentials of Coca-Cola: Activity 2 Report

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Marketing Essentials of Coca-Cola
Activity 2
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Table of Contents
Activity 2: Report............................................................................................................................3
Introduction......................................................................................................................................3
Diverse organisations apply marketing mix to marketing planning process to attain business
objectives.....................................................................................................................................3
Strategies applied by organisations to identify how business objectives could be attained with
7Ps................................................................................................................................................4
Product:....................................................................................................................................4
Price:........................................................................................................................................4
Place:........................................................................................................................................5
Promotions...............................................................................................................................5
People......................................................................................................................................5
Physical Evidence....................................................................................................................6
Process.....................................................................................................................................6
Strategic Marketing Plan for a product of Coca-Cola.....................................................................6
Company Overview.....................................................................................................................6
7Ps of Fanta.................................................................................................................................6
Current Marketing Situational Analysis......................................................................................7
Objectives....................................................................................................................................8
Marketing Strategy......................................................................................................................8
Segmentation, targeting and positioning (STP)...........................................................................9
Tactics and Actions......................................................................................................................9
Monitoring and Controls............................................................................................................10
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

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Activity 2: Report
Introduction
The report will be analysed to define how Coca-Cola would use marketing mix i.e. 7Ps to attain
business objectives. This will be evaluated with a strategic management plan, so that a product
choice could be made with monitoring and controls, by using the present marketing situation of
Coca-Cola with internal and external analysis. The section will also identify how Coca-Cola with
Pepsi is differentiated with the 7Ps with evaluation of key strategies for the company’s benefit.
Diverse organisations apply marketing mix to marketing planning process to attain
business objectives
The marketing mix could be applied to marketing planning method, so that it can reach the
objectives and organisational goals. According to David and David (2013), the business
organisation uses application of marketing mix for Coca-Cola, which will be compared with
PepsiCo. Coca-Cola being the brand with large brand equity, it has gone with difficulties for its
business to reach a credible market position. Towards market information of Coca-Cola, the role
of marketing helps to analyse the demand of the customers, and likings associated to advertising.
As opined by Kee and Yazdanifard (2015), marketing helps to attain the target of the business, so
that it could create a basic marketing plan in future with the business objectives. As Coca-Cola
has defined attractive bottles and cans to attract customers, it will also help to increase product
packaging, so that customers can use the package and handle with care. For example, as Coca-
Cola has functional units mainly in finance, R&D, customer service and production, it creates
targets, so that company’s profits can be developed in future. As marketing is also associated to
customer service, it finds an understanding of how customer views are associated to a product.
For instance, Coca-Cola towards its market planning always creates some innovative Ads, like
“Open happiness” that makes a feeling to attract customers (Stead and Stead, 2013). Coca-Cola
also organizes few promotional events in shopping malls, colleges and other places. Thus, it is

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found that Coca-Cola has a strong reach, as the company supplies product as per the demands of
the customers, and availability of retail shops. Towards the market planning, it can be associated
that Coca Cola’s objective is to increase brand image, so that it can stay at the top of the
beverage brand. By having a strong distribution channel, it would also try to reach to the rural
areas, so that attractive investments can help the company to compete with other competitors
(Dhar et al. 2005). Likewise, in case of PepsiCo, the company spends more on creating events,
so that it can find better sponsors with the youth people.
Strategies applied by organisations to identify how business objectives could be attained
with 7Ps
Product:
It is found that Coca-Cola has a wide portfolio in beverage industry that comprise of 3300
products. As beverages are separated into diet category, there could be 100% fruit juices, water,
energy drinks, Soft drinks, tea, and Coffee. Since Coca-Cola holds no.1 is brand, it has also
showed large presence in about 200 nations. Pepsi whereas also has expanded with its soft drink
market, and its snacks segment (Keller et al. 2011). For instance, Coca-Cola insists only on
beverage section while Pepsi’s snack section includes brands such as Lays, Cheetos and
Kurkure. Quaker Oats has been a recent addition for Pepsi that is resulting in increasing demand
for Pepsi, and helping the company’s bottom line evidently. Beverage section of PepsiCo
includes 7UP, Nimbooz, Slice, Aquafina, and Gatorade while Coca-Cola includes Fanta, Sprite,
Limca, and Thums Up.
Price:
Because of the large accessibility of wide product range, pricing for Coca-Cola would be done as
per the geographic segment. Each of its sub-brands has diverse pricing strategy, which means
Coca-Cola follows competitor pricing. For instance, Pepsi is regarded as a direct competitor to
Coke. Likewise, the beverage market is considered as oligopolistic market, consisting of large
buyers and few sellers (Amason, 2011). On the contrary, Pepsi’s pricing is competitive, and the
manufacturing and transportation cost is on the higher side. An instance shows that Pepsi
provides promotional discounts in case of bulk buying. Their 2l bottle is relatively cheaper than

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200ml, and the same case is for Coca-Cola too. Pepsi is seen to lower its price for top retailer
like Reliance Fresh, Big Bazaar in India, and similarly for fast-food chains like KFC and
McDonalds.
Place:
In terms of place, Coca-Cola works as a brand that finds wide distribution network in the FMCG
market. It is witnessed that their distribution network for Cole is eroded to be small and the mid-
level players in the present market. For example, in India, it has captured rural market with the
use of extensive allocation and eroded high market share of Kalimark, Bovonto, etc. For Pepsi, it
has found brands needs in every network of a nation, so that it can develop its sales. Pespi has
witnessed in contrast to Coca-Cola that their secondary distribution phase is linked directly to the
firm’s major retailers and bulk buyers (Tedlow, 2014). In India, Pepsi has around 36 bottling
plants where 23 are company owned and 13 are franchisees.
Promotions
According to Bhasin (2018), Coca-Cola adopts promotional and advertising strategies, so that it
can create improved demand in the present market. This is done by associating behaviour and
lifestyle of people through target-based advertising. Coca-Cola also uses the CSR, so that it can
gain benefits in customer’s mind. For example, the present promotions comprise “Support my
School” campaign with NDTV through CSR. In case of Pepsi, it targets mainly the youngsters
such as the celebrities and cricketers. Pepsi is seen to use the media channels for promotions, and
it defines BTL marketing as well (Keller et al. 2011). In contrast to Coca-Cola, Pepsi uses better
packaging and discounts that will be bundles in a best combination and value to key customers
for increasing brand equity and purchases. Coca-Cola whereas uses Push strategy mainly through
promotions while pull strategy is defined in case of campaigns and advertisings.
People
In Coca-Cola, all the generations of the people are above 12 years of age. The company uses the
financial incentives that comprise of innovative solution, and rewards for employees in quarter
base on attainments and quarterly incentives. Pepsi whereas fosters a corporate culture, which
tends to value employees and emphasized on variety in workplace. Pepsi is also recognised as

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the dedication to the Talent Sustainability event, and won “Workplace Excellence” during the
Equal Workplace National Summit (Bhasin, 2018).
Physical Evidence
Coca-Cola always has seen attractive packaging to attract all generations of people, and they are
recognised due to its logo (Amason, 2011). PepsiCo’s website whereas offers wealth of
information regarding the firm’s history with manufacturing process. Pepsi also has a packaging
philosophy, which include 5Rs (Recycle, Reuse, Reduce, Renew and Remove).
Process
Coca-Cola finds its process of packaging that has helped to increase brand awareness to remain
convenient to the shelf keeping. It also facilitates product by the use of better infrastructure with
the use of free empty bottles, display racks and freezers. In case of Pepsi, the Frito-lay will also
soon create Lays Kettle with natural flavour that will increase whole grain and the fiber content
(MBA Skool-Study.Learn.Share, 2018). The flavours are being shipped from Pepsi or Cola
manufacturing plants, and then they are eventually shipped to Pepsi’s manufactured plants.
Strategic Marketing Plan for a product of Coca-Cola
Company Overview
Coca-Cola is considered as a carbonated soft-drink business that mainly deals with non-alcoholic
beverages and syrups. The business is headquartered in Atlanta, Georgia, US while presently,
and it has about 62,600 employees with $31.85 billion, as of 2018. Company’s mission is to
inspire key moments of happiness and cheerfulness through events and brands while the vision is
to offer a world of portfolio drinks brands, so that it can maximize long-term return to
stakeholders (Bhasin, 2018). Here, a strategic market plan will be defined for Coca Cola’s Fanta,
which is new to the market, and having excellent sales.
7Ps of Fanta

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Product: The packaging of Fanta includes in pet bottles of 500ml, 750ml, 1.2l and 2l, and the
logo is orange, which provides gesture with sans serif typeface. The Product is packaged that
presented with customer’s attention. The product is also available in cans as well.
Price: As the beverage place is oligopolistic, the cartel contracts are being formed for enforcing
mutual balance in terms of pricing. Pricing strategy is based on competitors, which is same as the
Thums Up. For instance, the prices of 2l and 750ml bottle are priced at $1 and $5.
Place: As Fanta is a UK product, the distribution follows FMCG patterns where the products are
sold in shops, online, trade fairs, door-to-door and trade fairs in parts of UK (Adage.com, 2017).
Promotion: Fanta employs advertising strategies, which can increase demand by associating the
lifestyle and behaviour with value-based ads. The product uses brand ambassadors in UK, so that
advertising and campaigns allows better allowances and price discounts.
People: With the insight of customer trust, Fanta is considered as a key choice for UK males, and
the product is positioned for global customers, mainly in India popularly (Pahwa, 2018).
Process: The product serves as a differentiator from competitors, as customer loyalty optimizes a
better delivery process with company’s consistent services.
Physical Environment: In case of Fanta, the premium price may be charged for the service, so
that positive experience can be generated. Most retailers that operate out of their shops could be
hugely benefitted from this product (Adbrands.net, 2018).
Current Marketing Situational Analysis
For internal environment, Fanta with its fruity taste is helping Coca-Cola to become popular, as
130 million times is consumed by people every day. The key attribute of Fanta includes the stage
of production process, so that better communication and managerial skills are defined well
(Pahwa, 2018). To monitor the business, Coca-Cola has to conduct performance appraisals for its
business operation where it can act readily on customer and production process.
Towards the external environment, the powerful forces in the business environment may affect
Coca-Cola widely, but there could be also fluctuations in the marketplace. Due to demographic

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patterns, success of company’s products increases heavily. Here, the use of SWOT analysis of
Fanta in the form of table is presented below:
Strengths
 Excellent advertising and branding
 Popular among the youths
 Effective availability of Fanta product
size
Weaknesses
 Aerated drinks are not too popular for
the health conscious customers
 No fruit content but advertised as
Orange drink
Opportunities
 Advantage for Coca-Cola as a
successful brand
 More brand recognition with the buyout
competition
Threats
 Threat from PepsiCo’s Mirinda
 Threat from the substitutes like the fruit
juices
Table 1: SWOT Analysis
(Source: Learner)
Objectives
 To increase the sales of the product by 10% more in the Q3 of 2019, so that effective
sales can be gained globally
 To increase target audience of Fanta by increasing the taste of the product by increasing
the quantity of the product
 To increase the market share of Fanta by 25% in 2019, so that distribution network can
be developed with higher profitability of Coca-Cola
Marketing Strategy
To identify the marketing strategy of Fanta, it has found established Parent company where it has
attained competitive edge over competitors. Fanta has also included a diverse product portfolio,
where it can outsource its operations and develop economies of scale to increase profitability.

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Coca Cola’s Glo-cal strategy is followed by Fanta, which helps to create the shared values by
participative marketing. As the brand operates with an effective distribution channel, their pre-
sale system works evidently on delivery functions (Keller et al. 2011). Fanta also uses
sponsoring and branding events that increases company’s visibility to differentiate from peer
brands. However, Fanta is known for its colourful advertising, which would highlight bright life
for the young generation.
Segmentation, targeting and positioning (STP)
Segmentation
Fanta has segmented its worldwide market based on the geographies in parts of UK to run their
operations. It segments on the place of consumption, mainly on places like streets, railway
places, shopping malls and restaurants. Fanta is segmented for upper to lower class people of all
age group consuming due to its fruity taste (Stead and Stead, 2013). As Cola products offers
majority of revenue, Fanta has been increasing heavily in all parts of the world.
Targeting
Fanta targets diverse market segment with its varied ads while it is consumed by young people
having age group 11-26, and 27-40. Due to its fruity flavour, most of the teens are also attracted
to the product during high summer.
Positioning
As the product is used in thirst quenching and refreshing, Fanta is apparent to have tagline with
“Little drops of joy”. It is well positioned with low price but with better taste than other products
of Coca-Cola (Keller et al. 2011).
Tactics and Actions
To analyse the actions used by Fanta, it would be focused on driving the profit and revenue. In
markets like UK, Fanta can primarily increase volume to keep the beverages affordable, so that it
can strengthen foundation of future success. As Coca-Cola has invested hugely on Fanta, it can

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find increased spending of about $100 million by 2019. Fanta has worked efficiently, so that the
business can start with productivity improvement by 2020. Fanta has the probability to expand
with a better distribution network by 2019 end, so that it can distribute its products to number of
locations (David and David, 2013). It would also focus on expanding customer acceptance so
that soda category highlights refreshing nature of Fanta. Thus, Fanta can also run its extensive
ads, which will target customer minds to keep the Fanta brand in customer’s eyes.
Monitoring and Controls
This helps to control the business to check, if the variance of the budget would be actual. It also
allows taking decisive actions to meet marketing objectives.
 In case of Sales analysis, it breaks down the total business sales of Fanta by the market
segments for identify product’s weaknesses and strengths. The sellers of Fanta may vary
from the retail supermarkets to small stores (Rahman, 2017).
 For market share analysis, it contrasts Fanta’s business sale performance with Pepsico’s
products. Fanta will also try to increase its market share by 2019 Q4 by 25%. With the
change of Fanta’s taste, it would aim for regaining iron fist control in the market.
 In case of ratio analysis, if Fanta is launched in the emerging markets taking loans from
its creditors, this kind of analysis will decide the timeline by which such type of amount
will be repaid.
Conclusion
It could be concluded from the marketing plan of Fanta that it offers customers definite data and
choices, which could inform them to make better decisions. With better tactics taken in the next
year, it can develop a healthy balance for the product of Coca-Cola, so that increasing company
efforts can be made efficiently. Moreover, the product, Fanta in 1-year time can also enter in the
emerging markets, if the distribution channels for Coca-Cola are effective.

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References
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Amason, A., 2011. Strategic management: From theory to practice. Routledge.
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