Nowadays, companies create numerous products in the hope of attracting more clients and becoming the best in the market. Nevertheless, many businesses fail to understand that the main objective should be not the competitive position but the usefulness of the product and how it can be different from the rest of the offers. The choice today is so broad that corporations have to follow diverse promotion plans. As for Coca-Cola and the introduction of a new product line that includes organic coffee and milk drinks, it will be wise to use a promotional mix, focusing on local suppliers, sustainability, and social justice issues. This way, the organization will not only find a new loyal client base for the products spread the message but also have an environmental impact.
When it comes to the strategy, it can be rational to use a combination of push and pull strategies due to their coverage of the most lucrative parts. For example, as for the push strategy, a specific packaging design can be used in order to encourage a purchase. In this case, glass material can be used to store the product, this will also help the client see the inside without wondering. This approach creates product exposure and consumer awareness about the given products.
The pull strategy can also be advantageous when introducing new products. In this situation, in order to pull a consumer, advertising and mass media promotions can be utilized. According to Coca-Cola, one of the biggest sponsors of the company is Apple iTunes (Coca-Cola sponsorships, n.d.). Thus, Apple could also be a sponsor of a new organic product line since the objectives of Coca-Cola align with the goals of Apple, meaning that both support sustainability. Moreover, it might be useful to communicate the message to the younger generations with the help of social media platforms. For example, the ones widely known and heavily used are YouTube and Tiktok. With the help of short videos or reviews, it will be possible to gain more attraction.
As for the competition, the biggest competitor for the company’s coffee product might be Starbucks. Starbucks is known as the largest coffeehouse corporation and roastery reserve. This organization sells not only coffee drinks but also coffee beans. A competitor for milk drinks can be Dairy Farmers of America, one of the biggest dairy-oriented companies. A few possible competitive strategies include using product and service innovations. Instead of buying raw products abroad and from large suppliers like Starbucks, the company could support the local community economy and buy from local suppliers. In the second situation, a promotion campaign can be utilized. Since the product will be sold in special glass bottles, there can be a promotion. If a person recycles three bottles of the milk drink product, they can receive another milk drink for free.
Obviously, if the product is a national success, expanding and selling the product abroad will be necessary. A strong partnership with a local partner is the most effective strategy to expand into new markets. A strategic partnership will involve a contractual arrangement between Coca-Cola and a local business and enable parties to work together for a set period to achieve a collective goal. Such cooperation can be very lucrative to both sides since the business in another country is aware of the local market, demand, and ways of operating. With the recognition of Coca-Cola, it will be possible to cooperate with countries from abroad and introduce a new product line.
Along with entry mode, it is necessary to consider the appropriate distribution model. In this case, it can be a selective distribution model so that it can be possible to track the demand and feedback of consumers (Zacharakis & Bygrave, 2019). Moreover, this distribution model can be considered less expensive if compared to other models. The biggest advantage can be the moderate presence of the product. People are known to take things for granted, and having easy access to different kinds of coffee and milk drinks can be less enticing. Thus, having limited access to the products can induce interest and demand, which contributes to brand image.
The promotional strategy will include social media promotion. As mentioned before, such platforms as Apple iTunes, YouTube, and TikTok can be useful in this process. However, different social media platforms can be used, too, such as Facebook and Google+. This way, social media can promote the product to the right audience with the help of algorithms. The individuals with similar tastes and preferences will be shown the advertisements, which can boost the client base. Furthermore, such advertisements are delivered worldwide, which means that there might be a possibility to include international shipping with higher demand.
The last point is the ethical implications of the Coca-Cola business. It is evident that customers are always more likely to purchase products from companies whose beliefs and values align with the customer’s. In addition, as has been mentioned before, by communicating messages on environmental sustainability and social justice issues, the organization will be able to make an impact. The new product will address the given issues through packaging or introducing limited products in this situation.
For example, in order to support social justice issues, it will be possible to use lobbying and raising money through limited products. In this case, all the money from the sales of these products can be given to struggling people. Additionally, according to Coca-Cola, the company “is focused on helping communities address their sustainability challenges” (Our partnerships, n.d.). Environmental sustainability can be addressed through the packaging of the goods or using the services of local suppliers, as has been mentioned. Thus, in this situation, the preferred material for the products will be glass.
Glass is a recyclable, 100% sustainable option that has several benefits for the environment. The benefits include contribution to the mitigation of climate change and conserving natural resources and energy (Testa et al., 2017). Moreover, glass is the best option for coffee and milk storage. In the first situation, the coffee loses its freshness and quality when the vacuum-sealed packaging is opened. However, if a glass container is used along with the airtight gasket seal. As for milk products, they can be stored either in plastic or cardboard. However, the glass is more sustainable, and milk stored in plastic can quickly expire. Additionally, the glass will be able to help keep the cold and fresh for a longer time.
Hence, milk drinks and organic coffee have always been popular and would be an excellent addition to the Coca-Cola product line. With the help of various strategies, it will be possible to attract consumers’ attention and drive the demand for these organic and sustainable goods. Moreover, aside from supporting environmental issues, the products will include promotions and money-raising to help address social justice issues. As for other strategies, the organization will focus on local suppliers, a mix of pull and push strategies, and a selective distribution model.
References
Coca-Cola sponsorships. (n.d.). The Coca-Cola Company. Web.
Our partnerships. (n.d.). The Coca-Cola Company. Web.
Testa, M., Malandrino, O., Sessa, M. R., Supino, S., & Sica, D. (2017). Long-term sustainability from the perspective of cullet recycling in the container glass industry: Evidence from Italy. Sustainability, 9(10), 1752.
Zacharakis, A. & Bygrave, W. D. (2019). Entrepreneurship. Wiley.