Marketing Plan Of Coca Cola Company Marketing Essay Introduction: Coca Colas path to nearly universal recognition as a consumer product began by means of a peddler of patent medicines in Atlanta, Georgia in the year 1886. This individual one John Stith Pemberton had an ingenious idea. Why sell 75 pennies or Pound medicine bottles? This was a marketing strategy limited to the sick. Why not sell a single serving for a nickel? In the Deep South of the U.S. everyone might afford 5Â¢ for a cold invigorating soft drink. The nickel Coke was born. At the time, no one might have predicted that it would be almost 1960 before the nickel Coke was finally gone. (Allen, 1994) Today, if one scans the economic literature on price rigidity, he/she will find documented cases on how a number of prices seem to be sticky for significant periods of time. For example, Bergen, 2002 examines data on magazine prices plus finds that their prices transform regarding every 3-6 years. Using the Bergen, 2002 transaction price data, Bergen, 2002 finds that, It is not unusual in a number of industries for prices to individual buyers to remain untransformed for several years Bergen, 2002 studies catalogue prices of 12 retail goods over a 35-year period plus reports that the average time flanked by price transforms is regarding fifteen months. Blinder, et al. (1998), presenting detailed survey evidence as of U.S. firms, concludes that the average lag of price adjustments following supply or demand transforms is 3 months. Bergen, 2002 studies apartment rental prices in the U.S. using the Annual Housing Survey data, plus finds that over the period of 1974-1981, flanked by 23 as well as 34 percent of the apartments had no transform in nominal rent as of one year to the next. The study by Bergen, 2002 examines the frequency of price transforms for 350 categories of goods as well as services covering regarding 70% of consumer spending in addition to documents frequent prices transforms, by means of half of prices lasting less than 4.3 months. (Bergen, 2002) On the other hand, the price of a serving of Coca-Cola did not adjust to supply or demand transforms for over 60 years, plus the nickel Coke did not entirely disappear as of U.S. markets until 1959 Over 70 years! The contrast is of an order of magnitude to say the least! Our goal in this paper is to study this unusual episode of price rigidity in detail as well as try to explain it. Understanding what appears to be one of the most long-lasting nominal price rigidity phenomena of the 20th century is valuable for several reasons. First, the Coca-Cola Business is one of the most successful in addition to documented producers of a consumer good in the world. Second, over most of the time period covered in this study, the soft drink industry was a non-negligible part of the U.S. economy. For example, as of 1945, the bottled non-alcoholic carbonated beverage industry had a nominal production value of Â£579 million, or 0.26 percent of the Â£222 billion Nominal GDP.4 The Coca-Cola Business had a 50 percent plus market share of the industry, making its contribution alone economically significant, regarding 0.13 percent of the GDP. (Zbaracki, 2002) Marketing Strategy: Coca Colas spends loads on advertising however; the theme should be how to use it more effectively so the advertising program is simple.Â Coca Colas should do direct mail, banner ads, and inserts, by means of inserts in the Register Guard likely to be the most successful of the campaigns.Â Mission Coca Colas mission is to provide the customer the finest drinks as well as dining experience.Â We exist to attract and maintain customers.Â When we adhere to this maxim, everything else should fall into place.Â The services should exceed the expectations of the customers.Â Marketing Objectives Maintain positive, steady, growth each month. Generate maximum sales target each month. Experience an increase in novel customers who are turned into long-term customers. Realize a growth strategy of one store per year. Financial Objectives A double-digit growth rate for each future year. Reduce the overhead per store through disciplined growth. Continue to decrease the variable costs associated by means of food production. Target Marketing The souk can be segmented into two target populations: Individuals: sportsmen Families: during dinners as a popular fizzy drink, ceremonies and other family functions. Combining several key demographic factors, Coca Colas arrives at a profile of the primary customer as follows: Sophisticated markets all over the globe. Meant for all ages. All stores and supermarkets to keep the Coca Cola products on their shelves. Positioning Coca Colas should position itself as a reasonably priced, upscale, drink.Â Consumers who appreciate high-quality fizzy drinks should recognize the value and unique offerings of Coca Colas drinks and its different promotions.Â Coca Cola positioning should leverage their competitive edge: Product. The product should have the freshest ingredients including fizzy drinks, and might be smoothies and shakes can also be introduced.Â The product should in addition be developed to enhance presentation, everything should be aesthetically pleasing. Service. Customer service should be the priority.Â All employees should ensure that the customers are having the most pleasant delivery experience (by customer it is meant to mention the retailers and wholesalers).Â All employees should go through an extensive training program and only experienced people should be hired. By offering a superior product, coupled by means of superior service, Coca Colas should excel relative to the competition. Strategy Pyramids The single objective is to position Coca Colas as the premier drinks , OR area, commanding a majority of the souk share inside five years.Â The marketing strategy should seek to first create customer awareness regarding their services offered, develop that customer base, plus work toward building customer loyalty and referrals. The message that Coca Colas should seek to communicate is that Coca Colas offers the freshest, most creative, health conscious, reasonably priced, drinks.Â This message should be communicated through a variety of methods.Â The first should be direct mail.Â The direct mail campaign should be a manner to communicate directly by means of the consumer.Â Coca Colas should in addition employÂ banner ads as well as inserts in the Register Guard.Â This should be particularly effective for the reason that the Register Guard is a popular local paper that is consulted when people are looking for things to do in the global markets.Â The last method for communicating Coca Colas message is through a grassroots PR campaign.Â This campaign should leverage personal relationships by means of people on staff of the Register Guard to get a couple of articles written regarding Coca Colas.Â One should be as of the trade point of view, talking regarding the opening of the restaurant and the people behind the venture.Â This is likely to be run in the trade section.Â The second article should be a food review that is what are the different foods a customer feels a fizzy drink is a must, this will help the company to make sure that its products and all the drinks range is available on such occasions which augments its sales;Â In speaking by means of several dissimilar retailers plus restaurateurs, significant increases of traffic followed articles in the Register Guard. Â For the reason that of this level of effectiveness and low/zero cost, Coca Colas should work hard to get press in the Register Guard. Marketing Mix Coca Colas marketing mix is comprised of these following approaches to pricing, distribution, advertising and promotion, and customer service. Pricing. Coca Colas pricing scheme is that the product cost is 45% of the total retail price. Distribution. Coca Colas food should be distributed through a take outÂ model where customers can call in their order plus come to theÂ restaurant to pick it up, come into any restaurant free coke campaign will enable the , place the take outÂ order as well as wait for it to be completed, or come in and dine at the restaurant. Advertising and Promotion. The most successful advertising should beÂ banner ads and inserts in the Register Guard as well as a PR campaign ofÂ informational articles plus reviewsÂ in addition inside the Register Guard. Customer Service. Obsessive customer attention is the mantra.Â Coca Colas philosophy is that whatever needs to be done to make the customer happy have to occur, even at the expense of short-term profits.Â In the long term, this investment should pay off by means of a fiercely loyal customer base that is extremely vocal to their friends by means of referrals. Marketing Research During the initial phases of theÂ marketing plan development, several focus groups were held to gain insight into a variety of patrons of drinks.Â These focus groups provided useful insight into the decisions, as well as decision making processes, of consumers. An additional source of souk research that is dynamic is a feedback mechanism based on a suggestion card system.Â The suggestion card system has several statements that patrons are asked to rate in terms of a given scale.Â There are in addition several open ended questions that allow the customer to freely offer constructive criticism or praise.Â Coca Colas should work hard to implement reasonable suggestions in order to improve their service offerings as well as show their commitment to the customer that their suggestions are valued. The last source of souk research is competitive analysis/appreciation.Â Coca Colas should continually patronize local drinks for two reasons.Â The first is for competitive analysis, providing Coca Colas by means of timely information regarding other drinks service offering.Â The second reason is that local trade owners particularly drink owners, are often part of an informal fraternal organization where they support each others trade. Financials, Budgets, and Forecasts This section should offer a financial overview of Coca Colas as it relates to the marketing activities.Â Coca Colas should address Break-even Analysis, sales forecasts, expense forecasts, and how those link to the marketing strategy. Break-even Analysis The Break-even Analysis indicates thatÂ Â£40,000 should be needed in monthly revenue to reach the break-even point. Sales Forecast The first two months should be worn to get the company up and running.Â By month three things should get busier.Â SalesÂ should gradually increase by means of profitability being reached by the beginning of year two. Expense Forecast Marketing expenses are to be budgeted so that they are ramped up for months two through four plus then lower as well as plateau as of month five to month 10. Companys typically have increased trade in the fall.Â This generally occurs for the reason that during the summer, when the weather is nice and it does not get dark until late, people tend to eat out less but due to hot weather drinks sell well.Â As of months 10-12, the marketing costs should increase again. Controls The purpose of Coca Colas marketing plan is to serve as a guideÂ for the organization.Â Â Implementation Milestones The following milestones identify the key marketing programs.Â It is significant to accomplish each one on time, and on budget. Marketing Organization Kevin Lewis, the owner, is primarily responsible for marketing activities.Â This is in addition to his other responsibilities, plus does depend on some outside resources for graphic design work, and creativity. Contingency Planning Difficulties and risks: Problems generating visibility. Overly aggressive as well as debilitating actions by competitors. An entry into the EugeneÂ soukÂ of an already existing,Â company. Worst case risks might include: Determining that the trade cannot support itself on an ongoing basis. Having to liquidate equipment or intellectual propertyÂ to cover liabilities. The concept and product image of Coca Cola should attract 3 dissimilar customer profiles; The student further and further young people have developed healthy eating and fizzy drinking habits. Some in addition go through a health food phase while in college. The health conscious person of any age or sex this includes anyone on a restricted or prescribed diet or those who have committed to a healthy diet. Curious and open-minded if one tries it, one should like it. Through marketing, publicity, plus word-of-mouth, people should seek out a novel experience and learn that nutritious food can be tasty, fun, convenient, as well as inexpensive. The Competition There are over four dozen companies in the global markets that offer drinks at similar prices. Even though this presents an obvious challenge in terms of souk share, it in addition indicates the presence of a large, strong potential. The newest competitors have made their successful entry based on an innovative concept or novelty. Coca Cola should offer an innovative product in a familiar style at a competitive price. The aggressive plans of take-out and delivery should in addition give us an advantage to create a good souk share before the competition can adjust or similar concepts appear. Competitors Profile Competing by means of Coca Cola for the target souk are these categories of food providers: Independent table service companies of similar range and price structure. Chain Commercial foodservice companies serving students directly. Competitive Strategy There are three major manners in which we should create an advantage over the competitors; product identity, quality, plus novelty high employee motivation and good sales attitude Innovative as well as aggressive service options. Marketing Plan Sales Strategy Souk Penetration Entry into the souk has to not be a problem. The store has high visibility by means of heavy foot traffic all day long. The local residents and students always support novel flavours plus the tourists do not have fixed preferences. In addition, Â£10,000 has been budgeted for a pre-opening advertising and public relations campaign. Marketing Strategy Focusing on the unique aspect of the product theme (quality fizzy drinks) a mix of marketing vehicles should be created to convey the presence, the image, as well as the message. Print media local newspapers, magazines and student publications Broadcast media local programming and special interest shows Hotel guides, concierge relations, Chamber of Commerce brochures Direct mail subscriber lists, offices for delivery Misc. yellow pages, charity events A public relations firm has been retained to create special events and solicit print and broadcast coverage, especially at the start-up. The marketing effort should be split into 3 phases; 1) Opening An advanced notice (press packet) sent out by the PR firm to all media plus printed announcement ads in key places. Budget Â£10,000 2) Ongoing A flexible campaign (using the above media), assessed regularly for effectiveness. Budget Â£10,000 3) Point of sale A well-trained staff can increase the average check as well as enhancing the customers overall experience. Word-of-mouth referral is extremely significant in building a customer base. Future plans and Strategic Opportunities Catering to offices (even outside of the local area) might turn out to be a large part of gross sales. At that point sales agent would be hired to directly souk the products for daily delivery or catered functions. Operations Compensation Incentives Coca Cola should offer competitive wages and salaries to all employees by means of benefit packages available to key personnel only. Board of Directors An impressive board of directors should be assembled that represents some top professional as of the area. They should be a great asset to the development of the company. Consultants Professional Support Resources At the present, no outside consults have been retained, excepting the design department at Best Equipment. Management to be Added We are presently searching for a general manager plus executive chef. These key employees should be well chosen and given incentives for performance and growth. Ownership The stockholders should retain ownership by means of the possibility of offering stock to key employees if deemed appropriate. Long-Term Development Exit Plan Goals Coca Cola is an innovative concept that targets a novel, growing souk. We assume that the souk should respond, plus grow quickly in the next 5 years. The goals are to create a reputation of quality, consistency and security (safety of food) that should make us the leader of a novel style of dining. Strategies The marketing efforts should be concentrated on take-out and delivery, the areas of most promising growth. As the souk changes, novel products might be added to maintain sales. Risk Evaluation By means of any novel venture, there is risk involved. The success of the project hinges on the strength plus acceptance of a fairly novel souk. After year 1, we expect some copycat competition in the form of other independent units. Chain competition should be much later. Exit Plan Ideally, Coca Cola should expand to more units with increased supply of drinks in the next 10 years.
Challenges of Small Businesses Growth in the small and medium business in Canada and other developed countries has been very significant. This sector of the business community now represents about 40 percent of GDP and accounts more than half of total employment. Today small businesses are more diverse and more vigorous than ever, but they also faces newer and more challenges or inhibitors to their growth than their older conter parts. This research will attempt to find the answer to the following hypothetical question: "What are the barrier to entry, inhibitors to growth, and detriments to the health of small business and entrepreneurship today?" Access to capital and credit at various stages in the business life cycle is identified as the major hurdle by the entrepreneurs. For many small firms and most start-ups, the personal funds of the business owners and entrepreneur and those of relatives and acquaintances constitute as the major source of capital. For many small businesses, especially during the early years of their operation, credit is simply not available. For many others, the limited available credit is not through bank loans. Due to this many of them rely on multiple credit card balances and home equity loans as major sources of credit for start-up firm. Because banks are bound by laws and regulations to prudent lending standards that require them a risk management assessment for each loan made. These regulations were made more vigor during the late 1980'' and early 1990 . Banks always found that lending to manufacturing firm with hard asset such as property, equipment, and inventory has always been easier than lending to today's expanding service sector firms. Because the service sector firms own few hard asses, therefor lending judgment have to be based in terms of character, markets, and cashflow, which make it difficult to the bank to meet the regulations for the approval of the loan. Additional, the banking industry, as well as the entire financial sector of the economy, is undergoing rapid change. In the future banking industry will be divided into global, national and super-regional banks and a much smaller number of community banks. It is expected of these banks primarily super regional banks and community banks will extend their services to the needs smaller business through large loan processing centers utilizing credit-scoring techniques and "intelligent models" (artificial intelligence-derived computer-based models) .
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