Marketing IMC Strategy of Coca Cola 52

Developing a Marketing Strategy for Coca Cola

Introduction

This paper is about developing a marketing strategy. For this purpose, the Coca Cola Company has been selected. In this paper, discussions have been made regarding the brief introduction of Coca Cola Company, its SWOT analysis, and the new mission statement of the company.

The Coca Cola Company

The Coca Cola Company is a multinational American beverage corporation and manufacturer and marketer. Its headquarters is in Atlanta Georgia. The company’s mission is ‘To create value for our share owners on a long-term basis by building a business that enhances The Coca-Cola Company’s trademarks. This is also our ultimate commitment. As the world’s largest beverage company, we refresh that world (The coca cola, 2014). We do this by developing superior soft drinks, both carbonated and non-carbonated, and profitable non-alcoholic beverage systems that create value for our Company, our bottling partners and our consumers.”

Their mission serves as a weighing scale for their values, plans and actions. These implementations enable the company to establish itself in markets that it helped to develop by being able to gradually acquire higher profits. The company vision is “to become the undisputed leader in every market we compete”. They use the vision as a framework for which decisions are made strategically (the Coca Cola Company, 2012)

SWOT Analysis

Strengths:

High brand popularity- in 2011, the company was awarded from Interbrand for the highest brand equity (Foy et al, 2012). The brand is appreciated worldwide with consumers of all ages. This strength enables the company to enjoy economies of scale in the global market.

Robust distribution network- the Coca Cola Company avails its products to more than two hundred countries. It is able to use the company owned and controlled distribution network adequately. This enables the company to manage their costs, introduce new brands and acquire more market niches.

Weaknesses:

Water-Management. Water is the main ingredient for the company’s products. However, this resource is limited in many parts of the world. Over exploitation and the increased costs of living could potentially make the water situation worse. Therefore, Coca Cola will be forced to incur higher costs and this will adversely affect their profitability.

Foreign Currency Fluctuation- the company does not only use the US Dollar but also pays expenses earns revenue using other currencies such as euro, Mexican peso, Japanese Yen among others. However, at the end of the day they have to present their financial statements in American dollars. There has to be a conversion of currencies in US Dollars at the current market exchange rates at the end of every fiscal year. Fluctuations in the value of the dollar against other major currencies affect the company’s operating revenues, expenses and the balance sheet values.

Opportunities:

Extend Reach- the Coca Cola Company is concentrating on bolstering their products since the consumers they serve are shifting towards a healthier lifestyle. The company is producing bottled water for the countries that have major water shortages. China and India have increased their demand for the latest juices and coffee manufactured by the company.

Diversification- the company building a presence in rapidly growing beverage companies. It now owns 16% of Keurig Green Mountain. It is coming up with Keurig Kold Device that is intended to debut soon. In addition, the Coca Cola Ccompany purchased a 17% stake of the Monster drink (Foy et al, 2012). These ventures enable the Coca Cola Company to get in touch with a younger consumer bases.

Threats:

Changes in consumer preferences- there has been a cultural shift towards natural and organic products. The consumers now prefer nutritional water, smoothes and other healthy drinks. The federal regulators are placing excess taxes on these beverages and the health professionals keep discouraging the intake of these beverages.

Indirect competition- companies like Starbucks and DNKN do not pose as direct competitors; however, they provide services that the Coca Cola Company does not provide. They offer healthier drinks and customer loyalty rewards to their customers. This poses as a huge threat to the Coca Cola Company and others in the soft drink industry.

New Mission Statement

‘To introduce the world to our new and improved beverages that are healthier and help preserve the natural resources of this earth. We achieve this by manufacturing soft drinks and other hydrating beverages that create value for our company, increased profits for our shareholders while maintaining a cooperative relationship with environmental protectors.’

References

Senker, Cath & Foy. (2012). Coca Cola. London: Wayland

Thomsen, S., & Conyon, M. (2012). Corporate governance: Mechanisms and systems. London: McGraw-Hill.

Jesse. G. (2014). Management Styles & Leadership practices at Coca-Cola. Kabarak

Mazzarella, J. (1979). Leadership effectiveness. Burlingame: Association of California School Administrators.

The Coca-Cola Company: (2014). Mission, Vision & Values. Retrieved