Comparative Marketing Report: Coca-Cola and Red Bull's Strategies

This report provides a comprehensive comparative analysis of the marketing strategies employed by Coca-Cola and Red Bull. It begins with an introduction to marketing and its importance in today's business environment, specifically focusing on the significance of understanding customer behavior. ...Read More

MARKETING
ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 2............................................................................................................................................1
P3 Marketing mix of Coca- Cola and Red bull......................................................................1
TASK 3............................................................................................................................................3
P4 Marketing plan of Coca-Cola ...........................................................................................3
CONCLUSION ..............................................................................................................................6
.........................................................................................................................................................7

INTRODUCTION
Marketing has increasing its activities in effective and efficient way. Changes are taking
place very frequently in product and services, so it is essential to know what has to be done
which help to work according to knowledge of customers. There is need of changing in actions
through which targets and goals can be achieved inn effective manner (Babin and Zikmund,
2015). Marketing department has to keep in contact with various other departments of company.
This helps to make changes in working style and achieve targets effectively. Marketing of
product is important as it helps to communicate with society. This report is based on Coca- Cola
which is a good soft drink company. This report provides knowledge about marketing mix and
marketing plan of Coca- Cola (Papasolomou and Melanthiou, 2012).
TASK 2
P3 Marketing mix of Coca- Cola and Red bull
Marketing mix is the technique in which 7P's of marketing are involved. This is effective
to know what can be done through which modifications in business policies can be made. This
helps to know policies of competitors and analysis can be possible (Cooper, 2012). Comparison
of marketing mix of Coca- Cola and Red bull is discussed as under-
Basis Coca- Cola Red bull
Product Coca- Cola has wide range of
products which is helpful in gaining
advantages of varieties of customer.
Fanta, Limca, Sprite, Thums Up, etc.
are products served by Coca- Cola.
Red bull come with new type of
beverages which come with varieties
of soft drinks such as Red bull Cola,
red bull zero calorie. Red bull come
with various editions such as blue,
silver, red, etc.
Price Coca- Cola serve their product at
various place, so they finalise their
prices according to geographical
region. They serve product in various
price range with various package
system. In beverages market, there
Red bull is one of the expensive brand
in non alcoholic sector. This is the
brand which uses two types of prices
as per place of sales. One place is
pubs, disc, club, etc. while other is
grocery store, departmental store, etc.
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are few seller and large number of
buyer so they enter into cartel
contracts.
There is more fluctuations in prices of
Night club as compared to other.
Skimming pricing strategy is used by
red bull.
Place They have varieties of customers in
all over world. They have reach over
remote areas too. Managers of Coca-
Cola select mediums through which
they can cover different locations and
satisfy demand of customer. This
brands in famous in rural rare also, so
they have localized areas for
operating.
Red bull covers around 170 countries.
They have contact with various
hotels, pubs, etc. which helps to get
good sales. They have god
distribution channel so demand gets
satisfied frequently. Managers of Red
Bull does not use online sources to
sale their product. Online sales
channels, mass distribution channel is
used to sale product at different
places.
Promotion Coca- Cola changes their promotional
events frequently. They use various
approaches such as hoarding,
television advertisement, etc.
''Support your school'' is one of the
effective advertisement of Coca-
Cola. TV advertisement, outdoor
hoardings, promotional videos on
You Tube, etc. are used by Coca-
Cola for promotion.
Red Bull has many innovative
approaches through which they can
create awareness about products.
They make relations with customers
which are significant for growth of
business.
Physical
evidence
They provide articles which are
working same as adopting changes in
activities. They make small initiates
to promote their brand. They expand
their existence through digitalisation
Physical evidence of Red Bull is
crushed ice. This gives some new
energy to customers and this is
effective for growth of sales.
Customers gets attracted and helps to
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such as social networking websites,
official website, etc.
create awareness among customers.
Brand ambassador of red bull is
females and they place their
advertisement around sports events
are source of physical evidence.
Process Process of Coca- Cola is very
effective in distribution. As they have
fast distribution channel. This helps
to satisfy demand of consumer. As
there is requirement of specified
temperature for soft drinks so they
provide Vizi Cooler, Freezers,
Display racks, etc. in easing process
of distribution and selling.
Red Bull has famous because they
have fast supply chain. This is
effective for providing satisfaction to
customers. They use IT supported
measures, research and development
which ease process of performing
operations at Red Bull.
People Coca- Cola is the company which has
various products which are
significant for all age group people.
Cola- Cola serves no sugar drinks
also for elder age people. In order to
motivate employees rewards and
quality discounts are used by
managers of Coca- Cola.
Red bull produces drinks mainly for
young age people. There main target
is people between age group of 19-31
years. Mainly sporty people are
focused customers of Red Bull. Red
bull's main targets customers are
sporty people.
TASK 3
P4 Marketing plan of Coca-Cola
Marketing plan is important and useful document which is prepared by the each and
every organisation with aim to introduce their all details in accurate manner. This plan includes
overview, mission, vision, objectives, SWOT Analysis, competitors analysis, marketing budget,
monitoring and controlling (Dibb and Simkin, 2013). All these information are assist the
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customers to identify about the company and purchase more products. Above all elements which
are includes in marketing plan are explain as below:
Overview of Coca-Cola: It is a type of public and American corporation and Beverages
industry across the world. It was invented by Pharmacist John Stith Pemberton in 1886 at
Atlanta, Georgia. In the organisation, 61800 employees are working with aim to maximise sales
and revenue of company. They produce different products such as Fanta, Diet coke, Coca-Cola
zero, life and many other products at affordable price (Pike, 2015). Managers of Coca cola is
thinking to launch health drinks which contains protein and calcium.
Mission: “Mirror the richly various markets we offers, capitalizing on our inclusive
culture to attract, engage, retain and develop a global talent mix to fuel our competitive edge.”
Vision: “Be as inclusive and diverse as our brands, unleashing the power of perspective
within our associates to drive innovation and sustainable system growth.”
Objectives: Main objective of the company is to achieve long term goals and targets by
providing quality products and services to the customers at reasonable price (Fill and McKee,
2011). To launch protein and calcium drinks, SMART objectives are set by managers.
 S stands for Specific. This energy drinking is specific as it helps increase profits and sales
for association up-to 20%.
 M stands for measurable. This targets is measurable because sales as well as profits of
Coca- Cola gets increased.
 A stands for achievable. Launching of protein and calcium drink is achievable because
proper working style and budgets are settled.
 R stands for realistic. This objectives is realistic because managers are able to frame
policies for it. T stands for time bound. Time to achieve this targets is 4 months. So this is effective for
business growth and development.
SWOT Analysis: It is main and foremost part of the marketing plan which is necessary
for the company to prepare it in an accurate and systematic manner (Jones and Rowley, 2011).
This analysis includes Strengths, weakness, threats and opportunities of the business entity which
are determined as below:
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(Source: SWOT Analysis, 2017)
Strengths Weaknesses
 Coca- cola has good and famous brand
image and goodwill in marketplace,
clients has loyalty and trust over brand.
 Coca- cola has sizeable market share.
They have different varieties of
services and products which are
capable for company.
 Promotional and advertisement events
 Coca- Cola has less consequence on
activities and functions as this influence
business operations and growth highly.
 Cold drinks and many other beverages
are not reasoned as healthy products so
few people do not choose to intake it.
 Due to variation in currency rate
production and manufacturing of cold
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Illustration 1: SWOT Analysis

of beverage industry is effective, they
plan their programs as per customers.
drinks might acquire impacted.
Opportunities Threats
 Coca- cola can modify their product in
different other sectors also.
 Company must enlarge their business
operations in remote locations, so this
proves to be impressive for growth and
development of organisation.
 Coca- cola must enhance their supply
chain system. They can enter in water
segments or piece also.
 As there is highly trends of coffee, so
large number of person may not reckon
cold drinks.
 In today's area, people are very much
conscious regarding health and
therefore they do not yield cold drink.
This impacts sale and profit of Coca-
Cola.
 Due to modification in environment,
drinks or beverages are not more in
trend and this influence on sales and
profitability of company.
Competitors Analysis: It is identified as other part of the marketing plan which highly
effects on the productivity and profitability of company either positive or negative manner. In the
marketplace, there are different competitors of the Coca-Cola such as PepsiCo, Dr Peppers
Snapple Groups and many other (Lamb, Hair and McDaniel, 2011). All these are highly
impacted on the growth and success of company. In order to compete with these organisations, it
is essential to regular analyse their policies and accordingly modify business operations. This
modification helps to get edge over them and maintain good brand image in industry.
Segmentation, Targetting and positioning:
 Segmentation: Coca Cola company distinguish its target market according to
demographic and geographical areas. Coca cola has produce a large variety of non-
alcoholic products comprising chiefly soft drinks and fizzy.
 Targetting: Coca-Cola target youth population as well as children also. Positioning: They are emphasis on creation and development of happiness culture in their
workplace and marketplace also (Moore, 2014).
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Marketing Budget:
Marketing budget
Particulars 1st year 2nd year 3rd year 4th year 5th year
Initial money 55000 33900 33700 20900 20100
Investment 15000 22000 15700 13000
Total 55000 48900 35700 36600 33100
Marketing
expenditures
Advertisement 11000 7000 6600 6400 6600
Sales promotion 2300 2100 5400 3200 91200
Direct marketing 7800 6200 3200 7300 3400
Total 21100 15200 14800 16500 18300
Available balance 33900 33700 20900 20100 14800
Monitoring and Controlling: In this manger of coca-cola play vital and effective role for
managing all activities and functions in an appropriate manner. Thus, it is important for the
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manager to identify that all activities are executed appropriately and easily (Muralidharan and
Neha, 2013). As per above budget, business operations are performed, but due to lack of
communication, there are some duplication of commercial activities which results in exceeding
set budget by 5%. But at last with the help of advertising, there is positive impact on sales of
12%.
CONCLUSION
From the above mentioned report it has been concluded that marketing is more essential
and significant element which is applied by all business with purpose to maximise their sales. In
order to attract large number of customers as well as gain competitive advantages business entity
use different tools and techniques such as 7P's of marketing mix and marketing plan. All theses
are useful part for the organisation to introduced their services and products to the customers and
in the marketplace. Thus, it is effective for the company to achieve long term goals and
objectives within predetermined time of period.
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REFERENCES
Books and Journals
Babin, B. J. and Zikmund, W. G., 2015. Essentials of marketing research. Nelson Education.
Cooper, C., 2012. Essentials of tourism. Pearson Financial Times/Prentice Hall.
Dibb, S. and Simkin, L., 2013. Marketing essentials. Cengage Learning.
Fill, C. and McKee, S., 2011. Business Marketing Face to Face. Goodfellow Publishers Limited.
Jones, R. and Rowley, J., 2011. Entrepreneurial marketing in small businesses: A conceptual
exploration. International Small Business Journal. 29(1). pp.25-36.
Lamb, C. W., Hair, J. F. and McDaniel, C., 2011. Essentials of marketing. Cengage Learning.
Moore, G. A., 2014. Crossing the Chasm: Marketing and Selling Disruptive Products to
Mainstream Customers (Collins Business Essentials).
Muralidharan, K. and Neha, R., 2013. Six Sigma: some marketing essentials. Int. J. Mark. Hum.
Resour. Manage. 4(2). pp.1-12.
Papasolomou, I. and Melanthiou, Y., 2012. Social media: Marketing public relations’ new best
friend. Journal of Promotion Management. 18(3). pp.319-328.
Pike, S., 2015. Destination Marketing: Essentials. Routledge.
Online
Marketing mix of Coca Cola – Coca cola marketing mix. 2018. [Online]. Available
through:<https://www.marketing91.com/marketing-mix-coca-cola/ >.
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