Principles and Practice of Marketing: Coca Cola Fruiticious Report

This report provides a comprehensive marketing plan for Coca-Cola's new product, "Fruiticious." It begins by outlining marketing objectives, including raising awareness and achieving a 20% sales increase by the end of 2016. The report then delves into various marketing strategies, particularly focusing on the Ansoff matrix (market penetration, market development, product development, and diversification) to determine the most effective approaches. The analysis highlights the importance of market research and understanding consumer preferences. Furthermore, the report addresses forecasting existing results, including customer response, marketing costs, market trends, and competitor strategies. It also explores alternative marketing plans, emphasizing pricing and distribution strategies. The report concludes with a discussion of the marketing budget and a detailed action plan, providing a holistic view of the marketing efforts for Fruiticious.

Principles and Practice of
Marketing

Table of Contents
6. Marketing objectives and strategies.............................................................................................1
7.Forecasting of existing results......................................................................................................4
8. Creative alternative plan..............................................................................................................5
9. Marketing Budget........................................................................................................................6
10. Detailed Action plan..................................................................................................................6
CONCLUSION................................................................................................................................7

6. Marketing objectives and strategies
In accordance with the case, in order to promote the new product of Coca Cola Ltd.
product that is “Fruiticious” it is very important for the firm to make marketing objectives and
different strategies which will enable to achieve their goals through this product (Sawhney,
Verona and Prandelli, 2005). Developing objectives enables to develop path through which
organization can achieve their goals. Following are the objectives which should be followed:
 To aware the people regarding the new product.
 To make the sales reach for “Fruiticious” up to 20% by the end of 2016.
These objectives will help to provide information regarding the new product which the
organization wants to sell. The ultimate aim of any firm to gain maximum profit and this is only
possible when organization set up objective with the help of which the goals can be achieved.
However, there are many strategies which can be adopted in order to make their
objectives achieve (Swan and Zou, 2012). In this context, Ansoff matrix can be used as it is a
strategic marketing planning tool which help the company to develop marketing strategies. There
are mainly four possible product market combination among which firm can select the best
which would help in achieving their objectives.
Market penetration: This is a type of strategy in which organization focus on seeking
growth with the help of existing product and aiming to increase their market share (Linden,
Kraemer and Dedrick, 2009). In this context, organization focus on making use of different type
of strategies with the help of which they increase their brand image. It includes making use of
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Illustration 1: Ansoff Matrix

promotional tools like television, radio, newspaper, social media, etc. (Hamric, Hanson and
O'Grady, 2013). These strategies enable to develop awareness among the customers and also
contributes effectively towards the brand image of the organization. Further, they also make use
of different promotional strategies which enable to attract customers it includes strategies like
personal selling, providing discounts, free gifts, etc. In addition to this, it also includes strategies
for pricing, this can be determined as one of the most effective because of sale has high impact.
There are different types of strategies related to pricing and it includes market penetration, price
skimming, psychological pricing, etc. (Ritchie, Lewis and Ormston, 2013). It is very essential for
the firm to make use of these strategies so that they will be able to develop better customers base
for their existing product.
Market development: According to this strategy firm will focus on targeting new market
with the help of existing product (Solomon, Bennett and Previte, 2012). This stage is only
adopted by these organizations who have really gained huge profit for their existing market. It is
very important for the organization to conduct market research as it enable to understand the
customers needs and requirements (Burchell, Rettie and Patel, 2013). A product can only be
effective enough when people wants are been satisfied through that commodity. There are many
cases in which the product which was sold on to a particular market may not be effective as the
taste and preference of customers differs from market to market. With this respect, organization
has to conduct market research with the help of which they get to know the preference of target
audience and accordingly they can make changes and cover the new market (Bishop, Fody and
Schoeff, 2013). In order to cover the new market it is essential to make use of different strategies
which enable to deliver awareness regarding the product to customers. When ever a product is
been introduced in new market penetration strategy is been used. In this strategy the price of the
product is kept low at the initial strategy this is done in order to attract customers ( Grundy, Bero
and Malone, 2016). When customers get to know about the product, then the price of the product
is raised. Further, social media is very helpful in identifying the potential customers and it also
helps to have close interaction with service users. It enables to know the customer's perception
towards the product. Moreover, changes can be make on the product according to taste and
preference of customers (Broberg, Umans and Gerlofstig, 2013).
Product development: In this strategy organization would develop new product for their
existing market. There are many organizations which also focus on delivering the new product
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for their customers (Shank and Lyberger, 2014). This is done by identifying the opportunity
which prevail in the market. As the firm already has a brand image and it becomes easy for the
firm to distribute and to promote the product as they already have their strategies which they
used for their previous product. This type of strategy will be adopted by Coca Cola as they have
come up with new product that is “Fruiticious”. The organization already has a brand image and
it has its distribution around the world. Firm will be able to make their market reach to potential
customers effectively and efficiently (Lilien, Rangaswamy and De Bruyn, 2013). Same type of
strategy will be use as and it will help the firm to increase their market share through promotion,
advertisement, etc.
Diversification: This is a type of strategy in which new business in been developed and
aims at providing new range of product to new markets. It requires lot of research as it is
important to identify the needs and requirements of customers (Onakpoya, Heneghan and
Aronson, 2015). Then accordingly product should be develop which enable to increase the sales
and revenue. Further, finance play vital role as there are many marketing elements in which
money has to be spend (Zadek, Evans and Pruzan, 2013). This is very helpful in make people
aware and achieve the goals and objectives which are been set by new business. As it was
discussed above, it includes strategies like pricing, distribution, advertising, promotion, etc. In all
the market elements the new business has to put on proper efforts so that organization will be
able to attract service users effectively (Zadek, Evans and Pruzan, 2013). Lot of money has to be
spend by the person so as to identify the opportunity which prevail in the market as it will enable
to develop an organization which will help the persona to achieve their goals and objectives
effectively and efficiently.
Among all the above given strategies, Coca Cola already has a brand image and it has
covered all the market around the world (Hauser, Tellis and Griffin, 2006). In this context, cited
firm will make use of product development strategy. The new product is “Fruiticious” which will
be provided to existing markets. But the only new strategy which will be use of market
penetration, in which the price of the product will be kept low at the initial stage and then
gradually price will be raised (Broberg, Umans and Gerlofstig, 2013). As it is a new product
developed by Coca Cola and there are many other organization with provide similar products.
With this respect, in order to know the customer's perception and this will be known with the
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help of taking feedback for service user. Accordingly, changes will be make so as to meet the
requirements of customers.
7.Forecasting of existing results
When new product is been developed, then it is very important for the management team
to forecast the existing results. This is done in order to make a proper plan through which they
will be able to develop path for achieving the goals and objectives (Solomon, Bennett and
Previte, 2012). If these step is not followed, then there are chances that firm may face unrealistic
goals. In this there are many areas in which organization needs to make forecasting, which are as
follows:
Forecasting response of customers: This is the responsibility of marketing management
that they make forecasting of what will be response of customers by using various marketing
strategies (MacKenzie, Podsakoff and Podsakoff, 2011). Through this marketing team will be
able to make accurate plan through which promotion of product can be make effectively. For any
organization it is important to determine the amount of production which has to be done and this
is possible only when the firm will forecast the total number of customers who will be interested
in buying the product (Hamric, Hanson and O'Grady, 2013). Firm should understand the demand
for the product and accordingly make product in order to meet the demand. If proper plan is not
developed, then organization will not be able to make accurate plan. In accordance with case,
Coca Cola should forecast the response of customers so that proper marketing plan can be
developed (Onakpoya, Heneghan and Aronson, 2015).
Forecast of marketing cost: For conducting any types of operations, it is important for
have money or financial support (Jansson, Marell and Nordlund, 2010). With this respect, firm
should forecast the cost so that they will be able to arrange finance for their marketing. This is
very helpful in making the marketing stronger and effective. There are many elements which has
to be considered and it includes advertisement, promotion, etc. and it is very important for the
organization to make proper forecasting of the cost which they may incur in marketing (Ritchie,
Lewis and Ormston, 2013). As the product is new so organization need make use of marketing
elements so that they will be able to achieve their determined goals and objectives.
Market forecasting: In order to forecast the market, it is important for the marketing
managers to gain intensive understanding of customers (Hauser, Tellis and Griffin, 2006). It
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includes buying behavior, their tendency, etc. If Coco Cola understand their customers, then they
will be able to forecast the market (Goh, Heng and Lin, 2013). In addition to this, changes can be
make accordingly and customers can be satisfied. There are frequent changes in the taste and
preference of customers and it is important for the firm to conduct market research on frequently
as it help the organization to make changes accordingly (Burchell, Rettie and Patel, 2013).
Customers mainly aim to prefer product which satisfy their needs or the product provides them
with high benefits more than what they have paid for it.
Forecasting competition: When a new product is been introduced in the market, then
there are chances that competitors may adopt similar strategies (Darley, Blankson and Luethge,
2010). With this respect, organization should be able to forecast the strategies which can be
adopted by competitors. There are many organizations which provide similar products or
services and when ever new product is been introduced in the market, then people focus on
developing similar product but with improved services (Bishop, Fody and Schoeff, 2013). With
this respect, it is important that the firm make frequent improvement and adopt different
strategies with the help of which they will be able to maintain their revenue and sales.
8. Creative alternative plan
Alternative plan is developed so that in case the plan which has to be actually adopted
fails. This type of plan are adopted to so as to operate the marketing plan at low cost ( Gerhardt,
Hazen and Lewis, 2014). Plan can only be made effective if organization will achieve their goals
and objectives at minimum cost. There are many strategies related to pricing which can be use, it
includes psychological pricing and skimming pricing, etc. In psychological pricing the price of
the product is kept odd number. This strategy is very helpful in attracting as it enable to gather
customers attention. On the other hand, in skimming pricing the price of the product made very
high and slowly the price of the product is reduced (Puzakova, Kwak and Bell, 2015). This is
very helpful in attracting huge customers at limited speculated time. Distribution also play vital
role in attracting customers. The sales will increase when organization make the product
available to customers so that they will be able to provide the product to customers (Grundy,
Bero and Malone, 2016). With this respect, one of the best strategy which can be used is online.
Organization can make use of different types of social sites which enable to deliver the product
and it covers a large market.
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One more strategy which can be used is personal selling. In this strategy, organization
would make a team which will go to their respective areas and convey regarding the product
(Morton-Owens and Hanson, 2012). The main advantage through this is that customer's reaction
can be known and the issues can be solved which service users face.
9. Marketing Budget
This will state the actual among which will be required in order to make the marketing of
the product. With this respect, budget of the plan should be developed according to the
percentage of revenue (Yigitbasioglu and Velcu, 2012). In accordance with the case, Coca Cola
would spend up to £200000 in order to make their marketing plan effective. Through this
estimated amount cited firm will be able to make the promotional and other elements which are
involved in marketing. There are many areas which has to be considered and budget for each of
the areas should be developed so that it would help the firm to plan accordingly (Battistella,
Biotto and De Toni, 2012). In all the operation's organization will distribute the amount
according to the requirement this will be helpful in acting on the plan effectively. This budget
plan is been designed for six month time and it would be helpful for the firm to achieve their
goals and objectives effectively and efficiently. As stated above with the given amount that is
£200000 the organization should be able to distribute the amount and according to the different
strategies which are been adopted by the firm (Lilien, Rangaswamy and De Bruyn, 2013). It
includes strategies for advertisement, promotion, etc. Within the given amount for six months
firm will be able to deliver the new product that is “Fruiticious” effectively.
10. Detailed Action plan
In order to promote new product that is “Fruiticious”, organization has to make use of different
marketing tools so that proper information can be provided to customers. In order to reach out to
customers, Coca Cola would advertise the product by using tools like television, radio,
newspaper, social media, etc. (Hobday, Boddington and Grantham, 2011). Attractive
advertisement will be make which help in developing curiosity among people towards the
product.
Penetration pricing will be used, in this strategy product will be sole at low price and that
will be little less than its competitors. When slowly people would get to know about the product,
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then price will be raised (Linden, Kraemer and Dedrick, 2009). This strategy is very helpful in
attracting customers effectively.
Coca Cola has close link with popular retail in the world. Cited firm will make reach to
customers by making the product available to all the physical outlets. In addition to this, product
will also be sold online. This is will be helpful in reaching up to customers efficiently (Schreier,
Fuchs and Dahl, 2012). The amount £200000 will be spend for the marketing plan for six
months. Through this budget organization will be able to make achieve their desired goals and
objectives.
In addition to this, feedback and suggestion will be collected to employees and
customers. Employees have close interaction with customers, they have the knowledge regarding
the issues or problems which service users face (Sawhney, Verona and Prandelli, 2005). In
addition to this, customers use the product, so suggestions can be taken with the help of which
firm can be make changes in the product and satisfy their customers effectively.
Further, there are many promotional tools which can be used like providing discount, free
gifts, etc. (Linden, Kraemer and Dedrick, 2009). Through promotional tool organization will be
able to make their product promote and this will also help in making customers aware regarding
the product.
By following this plan Coca Cola will be able to make their marketing effective and this
will also help them to achieve goals and objectives effectively and efficiently.
CONCLUSION
From this report, it can be articulated if any organization wants to make attain maximum
profit, then it only possible when they will be able to satisfy their customers. Research should be
conduct so as to know the needs and requirements of service users. Accordingly, products and
services should be developed with will be helpful in satisfying customers. In addition to this,
budget is one of the most important element which helps to make the organizational plan
implement. In order to implement any strategy of plan, it is very important to have budget so that
plan could be made. Marketing tools should be selected with the help of which large target
audience can be attracted. One of the best tool in distributing the product which can be used by
organization is through selling the product online. The rate of internet users is increasing
drastically and this will be effective enough to increase the sale of the product and it also helps in
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developing brand image. Further, market penetration is one the best strategy which can be
adopted for introducing new product in the market. As the product is new to the market and
customers will hesitate to use it. But when it will be provided to them at low cost, then customers
will at least the product once. When services users will get to know the product, then price will
be raised. This is very helpful to cover large market within speculated time period. It is important
for any of the business to develop product according to the customers needs and requirement and
it will only help the firm to achieve their desired objectives. Developing a new product is very
difficult as it requires hard work and research which the help of which new product or service
can be identified. On the other hand, it is easy for the organizations to develop new range of
product as they have already established their business and also have a brand name so it becomes
easy to deliver new product to customers.
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