Case Analysis of Coca-Cola Marketing Mix Report

Marketing Mix is a combination of promotional techniques that different companies use to market their new products. Through viable and well-orchestrated marketing mix, organisations are able to identify practicable marketing rudiments to promote their commodities (Kalb 1997, p. 267).

Most of the new products introduced into the market constantly face stiff competition from the related products. In this context, Coca-Cola presented credible marketing mix for its existing and newly manufactured products.

Organisations should establish, ratify, and embrace a considerable promotional mix when marketing their products (Banhegyi 2008, p. 236). Consequently, the concerned products should be sold at a considerable price based on their quality and other pricing provisions. Moreover, the products should be distributed to the right places and at the right time.

All these should be done using the most appropriate method of promotion or any other viable means of advertisement. For these companies to generate an appropriate and practical marketing mix, their products must be of high quality, work properly, and be appealing to consumers (Lamb, Hair & McDaniel 2011, p. 78). The prices of the products must be affordable and right to the customers.

Consequently, this will make them purchase the goods in large quantities. Consequently, the company can realise enhanced competitive advantages and considerable profitability.

The organisation should also make sure that the concerned goods are available to the customers at the right place and at the right time as indicated earlier. According to Lamb, Hair & Mcdaniel (2011, p. 98), customers should be informed about the presence of the product through well-organised marketing programs. Besides, this will allow consumers to have reliable information about the product.

Coca-Cola Company, being one of the leading producers of food and beverages, should apply a viable marketing mix. This will greatly help the company check on its current marketing situation, thus develop possible ways of improving it. According to Carter, Cook & Dorsey (2009, p.101), it is clearly evident that the company will be able to evaluate (critically) its position regarding its marketing prowess.

Eventually, this will be useful in determining the future progress of the organisation. For example, Coca-Cola is currently developing a new product called ‘Coke Zero’. Before introducing this new product into the market, the organisation should establish the right pricing strategies, promotional mix, place, and a product that will meet the unique demands of customers.

It is critical to examine the price of other rival products, consider consumers’ opinions regarding the product, and weigh up the costs involved in its manufacture and distribution (Carter, Cook & Dorsey 2009, p. 128). Additionally, promotion of the product entails the engagement in different promotional events like product testing, organising competitions, and giving free samples to the clients.

To ensure that the new product that is currently being developed reaches the consumers at the right place and time, the following aspects of marketing mix are necessary. This is a critical provision in the context of marketing.

The product

Cola-Cola should recognize and satisfy its consumers’ demands. Additionally, the product usage and the area of application should be taken into consideration. The appearance and the perception of the consumers are also necessary when the company is trying to introduce a new product to the market.

The name, colour, and size of the product should be carefully established to ensure that it satisfies the customer’s demands. For the Coca-Cola Company to obtain increased sales of this new product, it (the new product) must be available in a unique version compared to similar products of other competitors. The company should also evaluate the highest price that the product can be tagged.

This price should not affect the trend in sales and is supposed to provide sufficient profit. The method on how to use the product should be easy to understand and must be liked by a number of consumers. Precisely, quality products are easy to promote despite the challenges.

Place

Place, in this context, involves making goods/services available in considerable quantities and at the desired locations. Clients should get products whenever they need them. Place is majorly concerned with the different ways of storing the product and the distribution channels used. Besides, it involves the distribution of goods and services to the consumers at an exact location and at a required quantity.

According to Rushton (2010, p. 55), the organisation concerned should identify the appropriate channel of distribution to ascertain that there is some efficiency in distribution. It is supposed to look into the method of sales directly distributing the samples or carrying out online deliveries.

The organisation should also check on what other competitors do to their products or how they manufacture the products (Rushton 2010, p. 76). This will help them produce higher quality products as compared to that of their competitor. Conversely, they are going to win the trust of the customers who will eventually buy their product. This is a critical provision when considered comprehensively in regard to marketing.

For Coca-Cola Company to achieve its promotional goals (introduction of Coke Zero into the market), this product should be delivered at the time when customers are willing to buy it. At this point (when consumers are willing to buy), the company will introduce improved sales even if the products are expensive.

Moreover, continuous flow of this product, from the production stage, to the wholesalers and finally to the consumers must be assured. The company can apply the direct mix of distribution by making sure that the goods are directly sold to the customers without the involvement of the middlemen like wholesalers and retailers.

This direct distribution is applicable when the manufacturer (Coca-Cola in this case) can competently and economically execute its marketing strategies. Direct distribution is also necessary when aggressive and strong individual selling is needed.

Besides, they should also use indirect distribution (involvement of the wholesalers and retailers) since the intermediaries are the only people who can easily and constructively interact with the customers. Through interactions, wholesalers and retailers are able to know the perception of consumers with regard to the product and send the message to the producers.

Given that consumers are in various locations, wholesalers and retailers will ensure that this Coke Zero reaches all the customers and the community at large. Besides, it is the intermediaries who have the information and experience on the market.

The price

Amongst the components of ‘marketing mix’, price determines the sales and the ultimate revenues obtainable from the product. In addition, the other remaining aspects are regarded as costs.

According to Hill, Roche & Allen (2007, p. 285), the cost of a given product will definitely determine the quantity or value of sales realised. In theory, it is majorly dictated by the perception of the customer in regard to the value of the product; what is perceived as the right price.

It is always vital to obtain information regarding the cost of the product from the customers. This will provide a clear picture of how they value the concerned product. Contextually, Coca-Cola will also know the correct price consumers are willing to pay for the product. It should also consider offering discounts to their customers or wholesalers in their market.

The cost of this new product (Coke Zero) is supposed to be set after various aspects have been considered. Actually, the price should be recognised by both the retailers and the consumers. Gathering vital information on the perceived price from the customers will eventually help in setting up an accepted cost of the produce (Hill, Roche & Allen 2007, p. 292).

It should not be higher than that of other related manufactured products from the competitors. When the charges are high, the consumers will tend to go for the other similar but cheaper products. Consequently, the company will not realise good sales from the new product. The cost of Coke Zero should not be too low as well as this will make the organisation make loses instead of profits.

Therefore, the difference in price as compared to other similar products should be slight as long as the company can make more sales and realise huge profits from this new product (Hill, Roche & Allen 2007, p. 311). This is a considerable marketing provision when considered critically and comprehensively.

Promotion

Promotion (marketing communications) incorporates the communication of information between marketers and potential buyers in order to influence attitudes and behaviours. Coca-Cola should establish both direct and indirect communication with its clients, distributors, and other potential stakeholders. Through communication, the company is able to retrieve vital information from the consumers.

This will help in identifying the areas of weaknesses for modification. To achieve excellent business activity, the organisation should be creative when carrying out some promotional events. In most cases, the costs involved in advertisements are slightly more than that used in production.

However, when there is an excellent advertisement or promotion, the organisation will definitely realise increased sales and thus the costs involved in promotions and advertisements will be spread over the huge turnover (O’guinn, Allen & Semenik 2012, p. 265). Promotion incorporates advertisement provisions that the company can use to attract and retain customers.

Another aspect of promotion is the sales promotion where various strategies are established to augment the sale of Coca-Cola products. Public relations equally contribute to the promotion of products. As a promotional mix, public relations ensure that the company keeps in touch with its stakeholders.

Coca-Cola can also establish direct and online marketing strategies. This will ensure that the company attains its marketing objectives among other promotional provisions. Concurrently, personal selling is equally important in this context.

The organisation should check on the best means of advertisement, which will reach numerous consumers. Besides, they must also take into consideration the methods used by their competitors when carrying out their advertisements. Through this, the company will maximise on the advertisement errors of the competitor and produce more modified method of promotion and advertisement.

With appropriate promotion, the consumer demand is likely to change to the positive side. The demand will be driven by the value of the brand rather than the price. Thus, customers will buy the product whether it is cheap or expensive. Additionally, Promotion is majorly carried out to make the demand less elastic (O’guinn, Allen & Semenik 2012, p. 284).

It is also being done to increase the demand whether the product is charged at a lower price or at a higher price. Besides, tools like advertising and personal selling can be used in promotion. Sales promotion and direct marketing are also some of the promotional tools utilized by the marketers.

With an excellent promotional service, Coke Zero will obtain desirable outlets and the customers will immediately start buying the product. Additionally, advertisements assist consumers in making the right decisions when it comes to buying the product.

There will also be a reasonable and productive relationship or contact between the company and its customers. By doing sales promotion, the customer’s perception will be changed and they will tend to like the brand whether cheap or expensive. Thus, the organisation is going to realise a huge sale turnout and consequently huge profits.

Environmental trends that will impact upon Coca-Coca Company in the future

There are various environmental trends that might impact upon Coca-Cola in the future. This paper discusses the two prominent ones including the products’ effects on the natural resources and global warming. Secondly, it also discerns competition from other companies producing related products.

The products’ effects on the natural resources and global warming

Evidently, the products produced by the company affect the natural resources. Consequently, global warming might arise worsening the situation. Precisely, the concerned environmental trends incorporate the depletion of water resources and the encroaching global warming mentioned earlier.

Water is a basic requirement for Coca-Cola Company. The company uses water in its daily manufacturing processes. Being a soft drink producer, it uses water as the most essential commodity for the production of the beverages and other related products.

Water is also useful when it comes to carrying out some routine cleanliness within the company. This means that the prospected depletion of water will interfere with the company’s business operations.

Besides, water shortage will adversely affect the constant supply of Coca-Cola products. Reduction in the availability of this natural resource is a vital issue that needs a serious attention. The current company strategy responding to the reduction of the water is vast and strategic. For instance, the company and the local community are currently undertaking some steps to ensure that there is a sustainable utilisation of fresh water.

Additionally, the company has set up a goal of being in charge of water resources management. They have put water stewardship’ strategy into practice and this has significantly encouraged the application of actions aimed at reducing the amount of water used in the manufacturing process.

They have achieved this goal by recycling water used in the production of the beverages and restocking water in the local environment. The company is also currently involved in the identification of the major sources of water and formulating some of the ways of protecting the sources.

Precisely, water is yet to meet its depletion due to the destruction of the catchment areas, inappropriate use, and inadequate regeneration. Ecosystem has been used unsustainably.

The levels of water in rivers are going down drastically simply because of this unsustainable use. Additionally, some of the environmental forces like climate change and growing environmental pressures always have an effect on the future market trends of companies.

Global warming also poses critical threats to the production and marketing of Coca-Cola products. It affects the sustainability of the natural resources including water. Hence, the company has challenges.

Additionally, the waste products produced by the company contribute considerably to the global warming quests. They also create climate changes. These environmental trends will eventually affect the Coca-Cola Company in the realms of production, marketing, sustainability, and profitability.

How the company can improve their marketing mix in response to the trends

To respond to the above environmental trends, the company should improve its marketing mix by producing sustainable goods of high quality. On products, the company should lower the usage of water during the production phases. It is also advisable to recycle the already used water for sustainability. Additionally, the company can embrace a friendly environmental packaging of its products.

Viable goods should be delivered at the right time and place to ensure that they are supplied constantly to the consumers under sustainable environmental protection. On place, the company should distribute its products in areas where the weather is warmer and the water is lower in quantity.

This is because costumers would appreciate a sustainable supply of beverages. It is also advisable to manufacture or establish production plants at places full of water. These will help in curbing the concerned environmental atrocities caused by the company.

On promotion, the packaging of the product and its appearance should be changed in regard to the demands of the customers and environmental preservation quests. It is crucial for the company to send a persuasive message that Coca-Cola products are environmental friendly. This can act as an example to the entire society.

To obtain a viable business activity, Coca-Cola should be more creative when carrying out some promotional events. By choosing the best method of advertisement that can reach many customers, the demand will shift in favour of the product and environmental sustainability quests.

Creation of other business social networks will also stretch market opportunities and environmental protection campaigns. Consumers can get more information on how to conserve the environment and water catchment areas. Besides, it will reduce the cost that would have been used in carrying out promotions and advertisements.

On pricing, the company should also tag an affordable price to its products. This can include the percentage of cash that will be redirected to the environmental protection strategies. This will help in overcoming the pressure created by other companies producing related products.

There should be correct pricing and distribution of goods and services to the consumers at the right location and at the required quantity. This company should also identify a reliable environmental sustainability program to ensure that there is some efficiency.

To generate good sales revenue, the price of the product should be accepted by the consumers and the community at large. When the prices are High or low and the customers are not willing to buy, then the organisation will realise low sale turnout. Additionally, channels of distribution are supposed to be increased to ensure that this product can reach customers in both urban and rural areas.

Competition from other companies

Competition from other similar industries causes a worrying threat to the daily operations of the Coca-Cola Company. Through competition, the company will lose most of its customers when the concerned competitors introduce related products. Additionally, the company is at a risk of losing its share since most customers will prefer holding shares to that company which provides shares at a sustainable price.

If the new company (a competitor) comes up with fresh marketing strategies to penetrate the market, Coca-Cola Company will lose almost three quarters of its market share. Having a better product from the competitor also affects the demand and supply of this company’s products.

Additionally, the company cannot charge its products highly. It will be forced to sell at a lower price compared to the new product’s price. The company will eventually be making loses since the cost of production will be higher than the realised profit. Conversely, competition improves the lives of consumers since they are able to obtain high quality goods at a cheaper cost.

What company could do to improve the marketing mix in response to above points

To respond to the above environmental trend, the company should improve its product provisions. The products should be able to serve the demands of clients. They should be affordable and competitive in the market. This will allow the company to remain relevant and competitive in the market. Products should be properly formulated and packaged to outdo other in the market.

On place, goods should be well distributed to the customers. The company should orchestrate its distribution channels so as to remain afloat in the market. Concurrently, lowering prices and maintaining quality will be helpful. Promotional strategies should incorporate more adverts, use of internet advertisements, and establishment of considerable social networks.

List of References

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Lamb, C, Hair, J & McDaniel, C 2011, MKTG5: student edition, Cengage Learning, Mason, OH.

O’guinn, T, Allen, C & Semenik, R 2012, Advertising and integrated brand promotion, Cengage Learning, Mason, OH.

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