Marketing Plan
(Product Coca-Cola)
Introduction
Coca cola is the oldest brand in Bangladesh. From the last 50 year Coca cola has been marketing its products through local representatives of Bangladesh. However, now it is marketed by Abdul Monem Limited it marketed coca cola under the authority of the Coca-Cola Company, USA (trademark owner). Abdul Monem Limited is the distributor of Coca-Cola, Sprite and Fanta in Bangladesh. Soft drinks brand Coca Cola last year announced plans to start its own sales and distribution operations in Bangladesh.
Corporate objectives
To refresh the world minds body and spirit. Coca Cola Company is to provide the best product that they can to the public, and create customer satisfaction.
The aim and objective of Coca-Cola Enterprises is to be the best beverage sales and customer Service Company. To them ‘best’ means being the number one or second brand in every category .They also aim to never let their high standards of quality fails.
Marketing Objectives
-Increasing the market share in Bangladesh so that Coca-cola can compete with other beverage brands especially Pepsi-cola.
-Increasing the sale so that Coca-cola can get more profit.
-Doing more advertisements to attract people and remind that the Coca-cola will be the best choice for beverage.
-Combining with some restaurants, fast food shops and so on.
The Challenges
The CHALLENGE of the 1990s will be not only to use these res Coca-colaces but to expand them… to adapt them… to reconfigure them in constantly changing ways in order to bring about an ever renewed relationship between the Coca-Cola system and the consumers of the world to make the best even better.
The world is changing all around us. To continue to thrive as a business over the next ten years and beyond, we must look ahead, understand the trends and forces that will shape Coca-cola business in the future and move swiftly to prepare for what’s to come. We must get ready for tomorrow today. That’s what Coca-cola 2020 Vision is all about. It creates a long-term destination for Coca-cola business and provides us with a “Roadmap” for winning together with Coca-cola bottling partners.
About brandsIncreasing globalisation of the communication industry means we can more effectively expose Coca-cola advertising and other image-building programs. Coca-Cola, in every form… classic, diet, caffeine free, cherry, light… is the most widely recognized and esteemed brand in the world.
About capital… Shaping business systems which are close to consumers will require not only the investment of Coca-cola capital for new assets but more sophisticated management of existing ones Existing assets will be evaluated as potential resCoca-colaces for meeting Coca-cola goal.
About people… We need the right people for the 21st century… We must have people who use facts and knowledge to add something to add value to Coca-cola customers’ businesses.
Situation Analysis
Company analysis
| Goals
Coca-colas Roadmap starts with Coca-cola mission, which is enduring. It declares Coca-cola purpose as a company and serves as the standard against which we weigh Coca-cola actions and decisions. · To refresh the world. · To inspire moments of optimism and happiness. · To create value and make a difference. Coca-colas focus Coca-cola Focus serves as the framework for Coca-cola Roadmap and guides every aspect of Coca-cola business by describing what they need to accomplish in order to continue achieving sustainable, quality growth. Mainly they focus on people ,partners, planters and productivity. |
Focus on the Market
Focus on needs of Coca-cola consumers, customers and franchise partners
Get out into the market and listen, observe and learn
?Possess a world view
?Focus on execution in the marketplace every day
?Be insatiably curious
Wining culture
Coca-cola Winning Culture defines the attitudes and behaviors that will be required of us to make Coca-cola 2020 Vision a reality. Values, Wants & Perceptions that learned from family, society, other institution.
Strengths
Coca Cola is an extremely recognizable company. Popularity is one of its superior strengths that are virtually incomparable. Coca Cola is known very well worldwide. It’s branding is obvious and easily recognized. Things like, logos and promos shown on t-shirts, hats, and collectible memorabilia. Without a doubt, no beverage company compares to Coca Cola’s social popularity status. Some people buy coke, not only because of its taste, but because it is widely accepted and they feel like they are part of something so big and unifying.
Weaknesses
Although the sales are increasing quickly every day, Coca-cola is also facing some problems with their products’ ingredient. Coca-cola has got sugar by which continuous drinking of Coca-Cola may cause health problems. Coca-cola advertisements are not so attractive to the public when comparing with the main competitor Pepsi-cola.
Market share
| Market Challenger | Pepsi | 29% Share |
| Market follower | Mojo, Rc-cola,Cleamon | 2%,12%,10% Share |
Where coca-cola has covered about 47% of market share in Bangladesh.
Customer analysis
Number and type
Coca-cola Company exists to satisfy the consumers’ needs. The coca cola company has designed many brands to satisfy a very wide range of target customers. They are able to provide drinks for many different target markets including people of all ages, sexes, races, etc. In today’s society, people are looking to lead better, healthier lives, so they think about it and produce diet coke, or coke zero.
Value drivers
The people of Coca-Cola Enterprises are the heart and soul of Coca-cola business, building relationships with Coca-cola customers and Coca-cola consumers. By putting people first, their hope to create value for everyone touched by Coca-Cola Company. So that people can gives ideas, making suggestions, expressing views, and appreciating Coca-cola shared and unshared differences.
Concentration of customer base for particular products
We know that there are many Milliliter bottles produced by the company. But all the ML of bottles is not expectable for all. In statistics we see that (6ooml) bottles are most preferable for every people because the price is chief and easily access able.
Competitor analysis
Market position
Pepsi is a very powerful brand name and is one of the biggest competitors of Coca-Cola. They compete with Coca-Cola throughout the world and it is no different in Bangladesh. At the current moment RC- Cola is a very big brand name in Bangladesh and is the greatest rival for Coca-Cola in Bangladesh. Mountain Dew is also a good brand and is a threat for Coca-Cola. Mineral water such as Mum, Fresh, ACME also a competitor of Coca-Cola. Different kinds of Juice also compete with soft drinks.
Target marketing of Pepsi
The reason why Pepsi-Cola has fiercely targeted this market is because it is the largest among its users. Market segment profiles have shown that the majority of carbonated beverage drinkers of Bangladesh are youth and middle age people. Pepsi continually targets the Bangladeshi Schools, Colleges, Universities, restaurants, hotels, and fast food Stores. Pepsi customers are mostly teenager’s young adults between the ages of 14 to 30.
Positioning of Coca Cola
The main theme of coca cola is “open happiness” coca cola spends about a billion of dollars in trying to influence the new generation and young boys and girls by giving varieties of advertisement and taste. If anyone put one coca cola and one Pepsi in front of us about 65% of people choose coca cola because of its taste, its packaging attracts the young generation very much.
Strength
Coca-cola main competitor is Pepsi they know systems, networks, connectivity, programming and also data management. Youth and vitality is the main idea that the Pepsi brand tries to express, and the bottle design helps the brand associate with young. Pepsi restyles its cans with a series of 35 new designs. On Pepsi website, each theme has its own video clips which can be downloaded for free and other features to attract consumers with the purpose of representing the fun, optimistic and youthful spirit “of Pepsi. Pepsi also use music. There direct sales force maintains relationship customers one by one.
Weakness
Pepsi is now sold in more than 160 countries around the globe, but it still has a weakness in the international beverage market because it entered later into this arena than Coke. Pepsi has tried to enter this market by trying to do in three years what took Coke 50 years to do. Nevertheless, Pepsi has to spend years “to mature simply due to Coke’s dominance in the international market and the strong ties that Coke has developed with these markets and their governments.” when marketing its products, Pepsi utilize celebrity endorsement mostly which bored some consumers due to lack of novelty. Conversely, the success of fresh and creative advertise has consistently helped Coco-Cola attract and retain customers.
Market share
Being the biggest company in the soft drink industry, Coca Cola enjoys the largest market share. This company controls about 59% of the world market.
Market Share By Area
Coca Cola is the world-renowned soft drink and the company is currently operating throughout the world. The world wide total is about 17.8 billion.
The operation review according to the segments is as follows.
Operation Review
(2002 worldwide unit case volume by operating segment)
| NORTH AMERICA | LATIN
AMERICA |
EUROPE &
MIDDLE EAST |
ASIA | AFRICA |
| 30% | 25% | 22% | 17% | 6% |
MACRO environmental PEST analysis
PEST analysis is a popular method that focuses in the external factors of the business and the environment where it operates. PEST stands for Political, Economic, Sociological and Technological. All of them examine the changes in the marketplace.
Political Analysis
The political conditions of the country are also basis of the study, especially in internal markets and other governmental changes that affects their ability to enter the developing and emerging markets that involves the political and economic conditions. However, Coca Cola continuously monitoring the policies and regulations set by the government. In Bangladesh political situation is a part of Coca-cola life. Like all other third world counties they have political problems too. The marketing manager of Coca-Cola Company generally sells Coca-Cola 8,000 cases (1 case = 24 bottles) per day but during strike the company faces a great loss as they cannot transport their products to the market regarding the political condition of Bangladesh.
Economic Analysis
The economy is growing up, that will help Coca-cola expand and develop the products.
Economic situation will influence the Coca-cola operation in the world, especially the market Coca-cola wants to promote the products.
Sociological Analysis
Social factors include Coca-cola attitudes, values and lifestyle. According to the company’s mission statement or other statements it is clear that they do not use any such ingredients (e.g. Alcohol), which, contradict to Coca-cola perception, values of Islamic religion or any other norms, and believes. The demand for carbonated drinks decreases and this pulled down the revenues of Coca Cola.
Technological Analysis
Technology is the main focus of the analysis where the introduction and the emerging technological techniques are valued. This creates opportunities for new products and product improvements in terms of marketing and production. As the technology advances, new products are introduced into the market. The advancement in technology has led to the creation of cherry coke in 1985 but consumers still prefers the traditional taste of the original coke.
SWOT analysis
Strength
Patent
Patent is most important and powerful strength of Coca-Cola Company. It’s an intangible asset for the company. Coca-Cola Company is a very well established group not only in Bangladesh but also all throughout the world. They have a strong brand image all over the world and the same follows in Bangladesh.
Own production plant:
Coca-Cola Company has their own production plant in Bangladesh-Tabani Beverage established their own production plant with the capacity of 250 BPM, and beside that they newly installed higher capacity of 500 BPM. So they don’t need to depend on others.
Research & Development:
They have well-established research & development department where they research over their existing product concentration & try to develop it. They also do researching on different taste of their products. They have highly qualified employees for their research & development dept.
High market share:
They are the most prominent manufacturers among all the beverage company in Bangladesh. They have higher market share than their competitors.
Brand image:
They have the most dominant brand name all over the world; they made their image for their brand name “Coca-Cola”. Whenever people think about soft drinks, the first name that comes into their mind is Coke.
Weakness
Don’t sell on account:
Coca-Cola Company doesn’t sell on account, whereas other companies like selling on account to their dealers. For not selling on account their profit margin tends to go down. Also, they lost their dealers and distributors.
Less motivation down stream:
They are very steady flow motivators for their product. They motivate but not so strictly, mean not maintaining the time period.
Insufficient advertisement:
In Coca-cola country, Coca-Cola does not have enough advertisement promotion. Thus their competitors are professionally more advanced than them. Their customers are not properly informed. So, many of the customers of that parts of Bangladesh are not having Coca-Cola.
Not skillful village distributor:
Coca-Cola does not have a good and skillful village distributor. Coca-Cola products can hardly be seen in village areas. Their advertisements are also hardly seen in those areas. As such they do not have that good distribution channel outside Dhaka city.
Opportunity
High growth rate:
Coca-Cola does not have that good distribution channel outside Dhaka but now they are trying to get hold of better distributors and thus the village people can have access to their products. So it can be seen that in the near future they can have even a greater market share than today.
Huge local market
The selling activities of Coca-Cola are very high in the local market than other existing company. They capture the whole market by giving the best quality to their customer and dealing professionally.
Acceptance of Pet bottles:
Coca-Cola launched attractive pet bottles, which is accepted by the entire customer, as it is portable and people are willing to buy these pet bottles rather than the bottles.
Good relationship with the distribution channel:
They promote their distribution channel through discount & allowances. They serve their dealers on time.
Good relation with the Government:
Good relationship with the Govt. is very important for any company to run its business.
Threats
Other existing company:
The other rising companies are becoming threat for Coca-Cola. Opening of one company decreases 1% market share each year. Today RC Cola is a very reputed beverage producer and with their attractive advertisements and distribution channels they are at this moment in a better position than Coca-Cola and it is a big threat to them. Not only RC Cola but Pepsi, Virgin and euro cola are also in this business.
Good taste of competitors:
The other beverage company’s product is also coming up with the different taste like; mountain dew, URO cola with lemon, Fizz- UP, Pepsi.
Political instability
Like all other companies Coca-Cola also faces a lot of problems regarding the political situation of Coca-cola country. Due to strike the transportation of their products is affected a lot.
Collaborators
Subsidiaries
1. Tapas Mondal
Country Manager – Bangladesh, International Beverages Private Ltd ( A subsidiary of The Coca-Cola Company)
2. Kazi Ha-mim Saleh
Team Leader – Sales at International Beverages Private Limited (100% Subsidiary of The Coca- Cola Company Limited).
3. Abdul Monem Ltd and Pran Group bottle the products
4. Md. Nafees Ur Rahman
Sales Team Leader at the Coca-Cola Company
Currently, Abdul Monem and Pran Group bottle Coca-Cola’s drinks in the country, Bangladesh News said. The facility is expected to produce around 222m bottles annually, worth BDT9bn (US$109.8m) per year.
Joint venture
Coca Cola proposed for a joint venture to set up a manufacturing and bottling plant in Bangladesh with the government and asked for an investment of approximately $50 million to set up the plant. Coca Cola plans to start their operations in Dhaka and Rajshahi regions in the following six months to regain its market share that they have lost to other competitors due to the absence of Coca Cola drinks in Bangladesh since 2008.Their goal is to bring their most popular drinks; coke, sprite, and fanta back into the regions of Bangladesh.
Distributors In Bangladesh there are two franchisees conducting operation on behalf of Coca-Cola Company. One is Tabani Beverages Company Ltd and the other Abul Monem Ltd. Basically distributes product in 4 region (Rajshahi, Khulna,Chittagong, and Shylet.)
Marketing strategy
Coca cola company building on fundamental strengths in marketing and innovation, driving increased efficiency and effectiveness in interactions with system and generating new energy through core brands that focus on health and wellness.
Coca Cola Company poised to capture the opportunity in so many ways. Here are just a few:
- With the world’s most recognized family of brands, company deliver more than 3,500 beverages to over 200 countries around the world — not just soft drinks, but juice and juice drinks, sports drinks, water, even coffee and milk. And every day company explores new ways to create and their sales while continues to plan for the next one, five and ten years in business. Share beverages to energize, relax, hydrate and enjoy.
- As the world’s largest distributor of non-alcoholic beverages, company maintains a trusted local presence in every community serve.
Targeting strategies of Coca-cola
They make different values to capture this portion of market by marketing targeting. However, they do not fiercely advertise like Pepsi does. They offer Coca Cola in those places where students and young people gather mostly. Their market segment profiles have shown that the majority of carbonated beverage drinkers of Bangladesh are youth and middle age people. Same as the Pepsi Coca Cola also targets the Bangladeshi schools, colleges, universities, restaurants, hotels and fast food stores. For this reason, they always spend huge amounts of money to compete with Pepsi in acquiring contracts with universities to have sold representation of their product distribution. .coca cola customers are mainly teenagers and young adults between the ages of 16 to 35. Coca cola also made diet coke for those who are suffering from sugar problems.
Product life cycle
Coca-Cola is currently going through the maturity stage. This maturity stage lasts longer than all other stages. Management has to pay special attention to products during this stage of the product life-cycle. Coca Cola’s success has always revolved around the secrecy with which it values and withholds its formula and it has maintained this culture of confidentiality since its inception. However, this does not mean the organization has fallen prey to regurgitation of dated product ideas or stagnation in its ability to develop. Most significantly, Coca Cola focuses on consistently reinforcing its core product
benefits of taste and refreshment to ensure the brand is continuously achieving new peaks.
Secondly, Coca Cola Company has ensured expansion of its product life cycles through adapting with consumers’ needs change. This can be evidenced by their market research conducted in the 1970s, which conclusively prioritized diet and health as a growing need for customers. Coca Cola envisioned that this consumer preference would eventually transform into a necessity. As a result, the organization capitalized on market research and launched Diet Coke.
Potential strategies
In this strategy coca-cola company implement their plan .If coca-cola company are not implement their first plan they are looking another plan to achieve their goals. This strategy ensures that company must set their proper marketing plan. A proverb goes that a good plan is half done. Potential strategy is very important for company.
Five core capabilities
Figure. Core strategy
Segmentation of Coca Cola:
Coca Cola segments its market in a number of ways. Coca Cola’s, customer segmentation is mainly by their market demographically based on age, income and family size. Coca Cola’s behavioral segmentation has been a key to the company’s success.
Age is one of the most significant parts of the segmentation of Coca Cola. Coca Cola introduces Coca Cola diet for the people who are suffering from diabetic and for those who are likely to avoid sugar and for the aged people specially 40 plus. Coca Cola mainly produces the Coca cola and the main customer of Coca cola is young people whose age is 10 to 35.
Coca cola also segment the market on the income basis by making little pack. They have an awesome price rang to all class of people. They introduce different price of containers with different size for the people whose income is different. They think about student, poor people, and middle class people economic condition for their pricing. Coca Cola mainly serves 500ml, 1L, 1.5L and 2L pack Cola in Bangladesh. Family size basis is also a base segmentation for Coca Cola. In Coca-cola society, by their marketing targeting, we have families with different family size. So Coca Cola makes a variation in their served bottle size into many ways such as 500ml, 1L, 1.5L, 2L pack. People can easily choose a suitable pack based on their family size.
Psychographic
Lifestyle: Bangladeshi people like to eating, Coca-cola can combine with restaurants, fast food shops and so on. In Bangladeshi Coca-Cola Company can divide the market into different parts
Demographic
Age: 15 to 45Family life cycle: young, single, married no children, married with children.
Family size: 1-2, 3-4, 5+
Gender: male and female
Income: high, middle, lower
Occupation: professionals, managers, executives, business people, students, homemakers, unemployed, etc.
Religion: Muslim, Hindu, Buddhist, Christian etc.
Race: Bangladesh, India etc.
Geographic
we are focusing on Bangladesh market.
Personality: some people like Vanilla, others like Coke lemon, others like Coke light and so on.
Behavioral
Occasions: Eid, pahela baishakh, Valentine’s Day, New year Benefit: some promotions such as discount 5taka per bottle for special occasion, new Models
Attitude toward the advertisement: Coca-Cola advertises the products at bus stops, on the roads, MRT stations.
Usage rate: rewarding more gifts for loyal customers.
Segment
Basically Coca-cola Company focusing young people in Bangladeshi prospective. Coca cola company increased annual marketing budget substantially, launched many new products, and developed a model to help Coca-cola retail customers maximize their sales while continue to plan for the next one, five and ten years in business. How could they occupy? Doing more advertisement to attract people and remind them that Coca-cola will be the best choice for beverage. Besides, Coca-cola can invite some celebrities to endorse for their quality, design, package, etc.
Everyday Coca-Cola supplies the products to wholesalers, retailers, convenience stores, super market or they can put vending machines in everywhere like Bus Stop, Shopping centre and so on. Moreover, they can associate with some fast food shops.
Inside sales: sending advertising to Internet, TV commercial, radio, newspaper, etc.Outside sales: They can provide free drinks to customers to taste: on the road, in the shopping mall and so on.
Sometimes Coca-cola has the promotion like discount 5 taka per bottle or they associate with other brands to promote together. They can focus on special days to advertise like Day, Eid day drinks Coca-cola and use Coca-Cola like a gift to offer everybody. In Valentine’s Day Coca-Cola can prints image about Love on the package to attract everybody as a promotion event.
Marketing Mix of Coca-Cola in Bangladesh
Coca-Cola has a competitive marketing mix like other soft drinks beverages has in Bangladesh. This marketing mix is listed below:
Product
Coca-cola selected product is Coca-Cola have different sizes. They have now bottle as well pet bottle. Coca-Cola also has 600 and 1000 ml pet bottles. In addition, they also have 1.5 And 1.25 liter of pet bottle and in the recent past they introduced into the market 2 liter pet bottle. It has also 250ml of can Coca-Cola.
What in Coca-Cola
Carbonated Water
High Fructose Corn Syrup
Caramel Color
Phosphoric Acid
Natural Flavors
Caffeine
Price
Abdul Momen Limited always tries to keep a standard price of Coca Cola bottles it also offers promotional discounts, allowances, credit terms and payment period for the stores and Restaurants. Coca Cola, furthermore, offers discounts in a family size bottle frequently.
The retail price of the beverage products are given below:
| Product Item | Quantity per pack | Price |
| Coca-Cola | 600 ml
1000 ml. 1250 ml 2000 ml |
32.00 Tk
55.00 Tk 60.00 Tk 90.00 Tk |
| pepsi | 600 ml
1000 ml. 12500 ml. 2000ml. |
32.00 Tk
55.00 Tk 60.00 Tk 95.00 Tk |
Place:
Distribution Channel:
Figure: Distribution Channel
The company will establish an extensive distribution channel for all brand of coca-cola company to make it available throughout the country. It will build six distribution centers (Agent) in the seven divisions of Bangladesh: Dhaka, Chittagong, Sylhet, Rajshahi, Khulna, and Barishal and Rangpur From these distribution centers, they will supply the coca-cola & other brands to different districts dealers. From dealers, the sales representatives will supply retail shops (small and mega) on the basis of their demand. The small traders will purchase Coca-Cola directly from the dealers.
Promotion
Promotion means activities that communicate the merits of the product and persuade target customers to buy it. According to Coca-Cola promotion is one of the major tools of marketing. A good way of promoting a product not only helps to influence and motivate people to buy it but also give a good impression about a company and it products.
Sales Promotion
Sales promotion includes marketing activities-other than personal selling, advertising, and public relations- that stimulates consumers, trade and dealer effectiveness. Sales promotion can be aimed at end consumers, trade customers, or company’s employees. Coca-Cola offers all of these sales promotions every year for various purposes. Coca-Cola s sales promotion tools include free samples.
Sales promotion is generally a short run tool used to stimulate immediate increase in demand. Frequently Coca-Cola uses sales promotion to improve the effectiveness of their promotion mix ingredients, especially advertising. Research shows that sales promotion complements advertising by yielding faster sales responses.
CSR program
In 22 March 2012, volunteer for Bangladesh, the volunteer wing of JAAGO Foundation stepped in to clean up the Banani Lake in its annual World Water Day campaign. This year the challenge lasted for three days and two nights, and was sponsored by Coca-Cola Bangladesh and Robi Axiata Limited. This year the challenge lasted for three days and two nights, and was sponsored by Coca-Cola Bangladesh and Robi Axiata Limited. One participating team was selected from 11 districts across Bangladesh, namely Barisal, Chittagong, Dhaka, Feni, Gazipur, Jhalukathi, Khulna, Narayanganj, Rajshahi, Rangpur and Sylhet.
CONCLUSION:
Coca-Cola no doubt come the heart beat of Bangladesh. Coca-Cola is one of the leaders in sponsoring the most important, thrilling events. E.g. Cricket matches, concerts and many other social occasions. For the marketing plan of this period, Coca-cola will definitely try harder to fulfill this plan to increase sales and get more profit. With advertising campaigns, marketing strategies, promotional strategies and price strategies, Coca-Cola has come up with an effective and efficient budget planning to carry out the activities and Coca-Cola determines to achieve the objectives in terms of profit, sales and market share.
Sources
Data collection:
We used to methods to collect the data:
Secondary data: We have collected the data from catalog and brochure of the coca-cola company. External data that we have collected from Internet are given on the net.
Primary data: Primary data are directly collected from the face-to-face interview. And also these sources..
http://www.bdnews24.com/details.php?id=215083&cid=4
http://www.scribd.com/doc/51633243/Coca-Cola-Marketing-Project
http://www.soopertutorials.com/business/marketing/2431-product-life-cycle.html
http://wiki.answers.com/Q/What_are_Product_life_Cycle_of_Coca_Cola
http://www.oppapers.com/subjects/analysis-on-coca-cola-market-in-bangladesh-page3.html
http://volunteerforbangladesh.org/index.php?option=com_content&view=article&id=49
http://www.thecoca-colacompany.com/
http://www.virtualvender.coca-cola.com/ft/index.jsp
http://www.janaojana.com/q-3189
http://www.just-drinks.com/news/coca-cola-co-to-set-up-bangladesh-plant-report_id105910.aspx
http://www.scribd.com/doc/30840330/HR-planning-process-in-Cocacola-Bangladesh
http://www.oppapers.com/essays/Bangladesh-Beverage-Industry/202660
http://free-academic-essays.blogspot.com/2010/07/break-even-analysis-coca-cola-company.html