Strategic Marketing Plan: Coca Cola Company, USA - Report

This report provides a detailed analysis of the strategic marketing plan for the Coca-Cola Company, focusing on the USA market. It begins with an executive summary and then delves into a thorough situation analysis, including an overview of the company, its mission and vision statements, non-financial and financial goals, and sustainable competitive advantages. The report explores the external environment through PEST implications, key drivers for change, and sector and technology trends. It also covers customer segmentation and a comprehensive competitor analysis, including major competitors, their strategies, and a customer analysis. A portfolio analysis of Coca-Cola's product offerings and a SWOT analysis are provided. The report concludes with a strategic market analysis and includes an annexure with the company's product portfolio, competitor analysis, and sales and revenue data, supported by a bibliography.

Element 1 Report: Marketing plan and Strategy
With special reference to Coca Cola Company, USA
Student details
7/9/2019

STRATEGIC MARKETING PLAN
Contents
Executive Summary.........................................................................................................................3
Situation Analysis............................................................................................................................4
Coca Cola Company Overview....................................................................................................4
Mission Statement........................................................................................................................4
Mission statement.....................................................................................................................4
Vision statement.......................................................................................................................5
Non-Financial Goals.................................................................................................................5
Financial Goals............................................................................................................................5
Sustainable Competitive Advantage............................................................................................5
Environmental and Industry Analysis.............................................................................................5
PEST Implications.......................................................................................................................5
Key Drivers for Change...............................................................................................................6
Sector Trends...............................................................................................................................6
Technology Trends...................................................................................................................7
Demographic Trends................................................................................................................7
Customer Segmentation...............................................................................................................7
Competitors’ Analysis.....................................................................................................................7
Major Competitors and Strategies................................................................................................8
Customer Analysis.......................................................................................................................8
Portfolio Analysis........................................................................................................................9
SWOT Analysis...........................................................................................................................9
Strategic Market Analysis..........................................................................................................11
Annexure........................................................................................................................................12
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Coca Cola Company Product Portfolio......................................................................................12
Competitors’ Analysis................................................................................................................12
Sales of Coca Cola and Estimated Revenue..............................................................................13
Bibliography..................................................................................................................................14
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Executive Summary
Coca Cola Corporation is best known for its product which is Coca Cola soft drink. The
company is enjoying market leadership from a very long time due to its effective market
objectives. The Company aims at maximization of its profits in order to sustain growth and
competitive advantage over other. It becomes possible for the company by providing drinks to its
customers and spreading happiness among them. In this report situation analysis, competitor
analysis and environmental analysis is done for the Coca Cola Corporation. It is concluded with
the help of PESTAL and SWOT analysis. Various organization reports as well as information is
used in order to identify the desired results about the recent trends of the company in the market.
The study concluded that the marketing plan could help the Coca Cola Company in sustaining its
competitive place among others in the marketplace.
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Situation Analysis
Coca Cola Company Overview
Coca Cola Company offers around 500 brands and it is a beverage company operating in over
200 countries and territories. Apart from companies, main coco cola brand products, the
company also have some valuable beverage brands in its portfolio (Coca Cola Company, 2018i).
Source: Coca Cola Company Product Portfolio (Coca Cola Company, 2018iii)
Mission Statement
Coca Cola Company aim is to provide refreshing beverages to its customers. In following lines,
the mission, vision and non-profit goals of the company are described briefly.
Mission statement
The mission statement of Coca Cola Corporation is bring refreshment to the mind, body and
spirit of persons with the optimistic brands and actions of the company in order to create value
for the company as well as customers to make difference in the market.
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Vision statement
The vision of Coca Cola Company is to continue attaining sustainability in achieving the goal of
company of making people happy and optimistic with their various brands of beverages.
Non-Financial Goals
Nurture efficient network of suppliers, customers and employees with the help of mutual trust. A
portfolio that has variety of beverages with low sugar and satisfying the customer needs in an
effective manner. Earn long-term profits on the other hand being a responsible business entity
(Coca Cola Company, 2018ii).
Financial Goals
The finance related goal of Coca Cola Corporation investigates the estimated profit margins of
company in the year 2020. In 2018 annual report the net income of the company was around
$1.58 million, in 2017, it was $0.28 million, hence in 2019 and 2020 the company is expecting to
earn more than $1.58 million (Coca Cola Company, 2018iv).
Sustainable Competitive Advantage
The functions and brand choice of Coca Cola Corporation leads it to attain sustainable
competitive advantage over others. It is in favor of Coca Cola Corporation that, it is a brand,
which has global presence and providing high brands to its various customers.
Environmental and Industry Analysis
PEST Implications
Factor Analysis Implication
Political Factors  Highly focused on political
lobbying and tries to build
trade associations.
 Political lobbing helps the
company in efficient marketing
and selling of companies
products in those events.
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 FDA and government
regulations are meat largely
(Elmore, 2013).
Economical
Factors
 Diverse customers as well as
considering prevailing rates of
USA economy.
 The company deals with diverse
population of USA by providing
its brands according to present
diversity and prevailing financial
rates of the Country.
Social Factors  The USA customers of Coca
Cola Company are now more
focused on their diet and
satisfying diverse customer
needs (Foster, 2014).
 Coca Cola Company
manufactures such beverages
that are low in sugar or sugar
free and tea/ coffee also.
Technological
Factors
 The company has used
technology in manufacturing,
delivering as well as marketing.
 Marketing of various products
with the help of digital marketing
process as well as their
packaging.
Key Drivers for Change
The key drivers are the technological factor that brings an innovative way of packaging as well
as marketing of Coco cola brands. Social factor brings change in the product contents as well as
quality as it is based on their needs and demands.
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Sector Trends
It discuss about the trends in the market regarding customers views and the production of Coca
Cola Corporation. These are distributed in two types that are:
Technology Trends
Recent development in technologies such as involvement of artificial intelligence in business or
up gradation of technology on the other hand, involvement electronic media for marketing helps
the company in innovating.
Demographic Trends
The trends related to frequently changing tastes of individuals, becoming more diet conscious,
getting knowledge about new product in the market and reacting accordingly helps the company
in evolving with the changing scenario.
Customer Segmentation
The customers of Coca Cola Company are divided into variety of segments, as the company is
dealing globally as well as in many brands (Gillespie, 2015). From the point of view of USA
Coco Cola, following customer segments are identified:
 Demographic Segmentation: There is no age of beverages offered by Coca Cola
Company; however, it is most favored by 8 to 50 years of age.
 Behavioral Segmentation: The USA customers prefer to drink coco cola irrespective of
the frequently evolving new brands.
 Geographic Segmentation: The Company manufactures and distributes its products
according to their reach in favorable conditions. They covered every part of USA.
 Psychographic Segmentation: the value, personality, attitudes are covered by Coca Cola
Company in USA and distribute their products accordingly.
Competitors’ Analysis
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Source: Consumption of Bottled Water, Carbonated Soft drinks, and Non-Carbonated Soft
Drinks in USA
Major Competitors and Strategies
Coca Cola Corporation is a major player in the marketplace; however, there are other companies
also which are providing a tough competition to this company. The major competitors of Coca
Cola Company are PepsiCo, Dr. Pepper, Lipton, The Gatorade Company, Nescafe, Tropicana
Products, etc.
In order to be competitive in the market of world as well as in USA the company adopted the
strategy of evoking experiences and memories of customers with their drinks and brands. There
marketing and manufacturing strategies involve consideration of factors like, nutrition, taste,
calorie rate, etc in their drinks.
Customer Analysis
Coca Cola Company has a wide variety of customer base. They are manufacturing their drinks
based on some factors of customer base in USA such as the youth favored this dink most, family
gatherings, parties facilitate the distribution of Coco Cola. Apart from them athletes, favor the
diet coco cola and fitness favored individuals, etc.
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Portfolio Analysis
Coca Cola Company is best known for its world famous drink that is Coca Cola, however apart
from this soft drink the company also deals in various other brands and drinks that are Suja
Organic Drink, Zico Coconut Water, Distilled “Smart Water”, fairlife Milk, Fresca Soda, Topo
Chico, Honest kids and many more (Coca Cola Company, 2018iii). The company covers every
type of drink in its portfolio and looking forward to include more, this makes Coca Cola
Corporation market player.
SWOT Analysis
The strength, weakness, opportunities and threat for Coca Cola Company as well as for each of
its major competitors are analyzed in this section, in order to identify the competitive overview
of Coca Cola Company over others.
SWOT Analysis Coca Cola Company PepsiCo Dr. Peppers Snapple
Group
Strength  Wide Global
presence makes
it a brand
favored by most
of the individuals
(Allen, 2015).
 Equity from
brand, hence the
company is
considered as one
major competitor
of Coca Cola
Company.
 The growth
strategies
adopted by this
company is
merger and
acquisition that
has lead the
company among
top brands.
Weakness  Focus on vast
Consumption of
 Failed products
and health issue
 Company lack
in investment in
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water in order to
make drinks of
various brands of
Coca Cola
Company.
related to this
brand leads to big
weakness of this
brand.
advances
technologies for
production and
marketing
purposes.
Opportunity  Developing
nations attract
drinks from this
brand as they are
evolving rapidly.
 This company in
order to bring
innovation in
their failed
products and well
as attract
customers on a
wide range must
conduct R&D as
well as CSR
activities.
 The brand have
the opportunity
in diversifying
itself in new
markets among
new consumers.
Threat  The company
has many
competitors as
well as some
indirect
competitors also
for its various
brands like
Starbucks, Costa
Coffee, etc.
 Health Factors
are considered
main threatening
factor for
PepsiCo (Dhar, et
al., 2015).
There are many
brands which are
dealing in this
industry, hence this
makes the pricing
strategy competitive
for Dr. Peppers
Snapple Group
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Strategic Market Analysis
Source: Strategic Actions of Coca Cola Company to Grab the Market (Coca Cola Company,
2018ii)
The Coca Cola Company attractive marketing strategies, make the production and distribution
process effective. Leadership in management helps the company in leading their production as
well as environmental factors in an efficient manner. The strategic marketing of Coca Cola
Company focuses on delivering the happiness and value to its customers and it is its USP.
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Annexure
Coca Cola Company Product Portfolio
Note: Combination of Coca Cola Brands as per its Official Website
Competitors’ Analysis
Note: Showing the major players of water based drinks in USA (Jain & Kedia, 2011)
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Sales of Coca Cola and Estimated Revenue
Note: Showing the estimated revenue and sales of Coca Cola Company as per its 2018
Annual Report
1.
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Bibliography
Allen, F., 2015. Secret Formula: The Inside Story of How Coca-Cola Became the Best-Known
Brand in the World. s.l.:Open Road Media.
Coca Cola Company, 2018a. Coca Cola Company. [Online]
Available at: https://www.coca-colacompany.com/history
[Accessed 12 July 2019].
Coca Cola Company, 2018b. Our Way Forward. [Online]
[Accessed 12 July 2019].
Coca Cola Company, 2018c. Brands. [Online]
Available at: https://www.coca-colacompany.com/packages/brands
[Accessed 12 July 2019].
Coca Cola Company, 2018d. 2018 Business & Sustainability Report. [Online]
Available at: https://www.coca-colacompany.com/content/dam/journey/us/en/private/fileassets/
pdf/2019/Coca-Cola-Business-and-Sustainability-Report.pdf
[Accessed 12 July 2019].
Dhar, T., Chavas, J. & Cotterill, R. W., 2015. An Econometric Analysis of Brand‐Level Strategic
Pricing Between Coca‐Cola Company and PepsiCo.. Journal of Economics & Management
Strategy, 14(4), pp. 905-931.
Elmore, B. J., 2013. Citizen Coke: an environmental and political history of the Coca-Cola
Company. Enterprise & Society, 14(4), pp. 717-731.
Foster, R. J., 2014. Corporations as Partners: “Connected Capitalism” and The Coca‐Cola
Company. PoLAR: Political and Legal Anthropology Review, 37(2), pp. 246-258.
Gillespie, K., 2015. Global Marketing. 4th Edition ed. New York: Routledge.
Jain, S. C. & Kedia, B. L., 2011. Enhancing Global Competitiveness Through Sustainable
Environmental Stewardship. s.l.:Edward Elgar Publishing.
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