Coca Cola SWOT Analysis and Marketing Strategy Essay

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Marketing Plan for Coca-Cola Drink

Current marketing situation

Coca-Cola is a carbonated drink that is manufactured by The Coca-Cola Company. The drink is aimed for the non-alcoholic beverage industry because it is a soft drink. Within the non-alcoholic beverage industry, there are soft and hot drinks. Hot drinks comprise of tea and coffee, while soft drinks contain flavor, sweetness, and carbonated or non-carbonated water. The industry is dominated by the soft drinks category and includes bottled water, sports drinks, ready to drink coffee, energy drink, juice, carbonates, and bottled water. In the United States, Coca-Cola is the most consumed non-alcoholic beverage. In order to cater for the health conscious consumers the company developed two drinks namely Coca-Cola Zero, and Diet Coca-Cola that are aimed for health conscious teens and adults respectively. With a global presence, the drink has continued to attract more and more consumers mainly because of its unique taste, which most competitors have not managed to imitate. Coca-Cola is targeted for individuals who are above 15 years for either gender.

Coca-Cola has become a global product, and it is manufactured in over 200 countries worldwide. The product maintains the same distinct taste irrespective of its production country or location. The Coca-Cola Company has managed to ensure that it serves the same taste to each of its consumers wherever they may be located, and this has increased its global perspective and reach. The internal and external strategies employed by the company have ensured that the company is able to maintain its success across the globe. In order to overcome its main rivals, the company also employs key marketing strategies that have proven effective and play on people's emotions. Continuous marketing has allowed the product name and distinct colors to remain with the consumers, which in turns affects their purchasing decisions. Coca-Cola is packaged in three distinct containers across the globe. There is a returnable bottle, tins, and plastic containers. All the packaging have maintained the product logo and distinct coloring to ensure that consumers can easily distinguish them from the rival products. The returnable bottle and the plastic containers make use of a contour bottle, which is easy to hold and is attractive to consumers. The contour bottle was invented to wade off imitators, and it has undergone tremendous improvements in order to fit the current target market (Jefferson & Anthony, 2014). This clearly demonstrates that the company is continuously innovating on its product and packaging in order to attract and satisfy the needs of the consumers.

The main rival to Coca-Cola is Pepsi, which is manufactured by PepsiCo. The two drinks have managed to capture most of the carbonated drinks market in various parts of the world. Coca-Cola has maintained its overall lead, and has managed to attract more consumers than Pepsi. Pepsi has implemented various marketing strategies, and the most common one was when they conducted a blind taste test. The campaign proved effective, but it did not last for long. Coca-Cola has maintained it marketing strategies and continued to implement innovative methodologies in order to compete with its rivals within the industry. Coca-Cola makes use of independent bottlers in different countries to ensure that they maintain a global presence. The bottling companies are charged with delivering the products to the consumers using various means available to them. Coca-Cola Company has over 300 bottling partners across the globe, and this assists in ensuring that the product will be available even in the most remote locations of the world. The parent company manufactures the concentrates, syrups, and beverage bases, which it sells to the bottling companies. The bottling companies will then mix the materials as specified and bottle according to the laid out criteria. The bottling companies will have their own distribution systems, which ensure they can supply to all parts of the operating country or location. Distribution can be done using wholesalers and other independent distributors, or can be undertaken wholly by the bottling company.

SWOT analysis

Strengths

Coca-Cola is the number one soft drink in terms of reach and sales globally (Nganga, 2012). This is a positive thing because it demonstrates the product has a wide reach, and there is potential for growth. Becoming a global leader is no easy task and does not occur instantly. The strategies that the company has employed for the product have ensured that it has a wide reach and has trampled its competitors. Been number one globally is a strength because it demonstrates the product has a strong brand identity and reach.

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It also shows that the product marketing initiatives are effective. A strong product within the market indicates the product has a strong brand equity. The product also rides on its popularity amongst different people across the globe. Its popularity is unrivaled, and this continues to push it across the globe. The popularity of the product is incomparable to any other in the industry. Coca-Cola is well-known worldwide, the branding it uses is easily recognizable, and obvious. There are people who purchase Coca-Cola because of its status and not because of its taste. Customer loyalty is another strength for the product. Coca-Cola has employed the 80/20 rule where 80% of the product's profit comes from 20% of the loyal customers. Many families and individuals are loyal to Coca-Cola. It is not rare to find Coca-Cola beverage bottles and cases in houses across the globe. With certain individuals, Coca-Cola is like a cult like following, and they would not be caught drinking anything else.

The distribution network employed by Coca-Cola Company ensures that the product reaches even the remotest of location across the globe. The demand within the market for the product has demanded that the distribution network be quite effective. The delivery of the products has to be timely and frequent. Having a huge and effective distribution network, the product has commanded a high market presence. Coca-Cola has a fantastic marketing strategy that allows it to touch and win people's hearts. For an effective marketing strategy, the marketers must communicate the message in a manner that people can easily relate with and feel part of the product. All Coca-Cola advertisements have the effect of arousing an individual's taste buds and desire to consume the product. The product advertisements do not have any age restrictions, and they incorporate people of all ages. This ensures that most people can relate to the product and embrace it easily.

Weaknesses

Competition from Pepsi has been a thorn in the flesh for a long time, and this has been affecting the products market reach. In certain countries, Pepsi has managed to capture and maintain its leadership, which indicates that if the trend continues with time rivals might edge out the product (Sharma, 2013). If Pepsi were not available in the market, Coca-Cola would have been the clear market leader because it currently commands about 47% of the soft drink segment, and Pepsi has around 25%. Pepsi has recognized that it need to put in more effort in order to edge out Coca-Cola, and it will continue offering competition to the product. The company has to continue increasing it product promotions in order to maintain and increase its market reach. Healthy beverages of Coca-Cola have not been produced, and the two variants available Diet Coke and Coke Zero have not managed to capture the market. People are still saying they are not viable for health conscious people. The two variants have been developed with health in mind, but the negative word of mouth that has been going around regarding the drinks has affected the overall product. Coca-Cola has also received a backlash from some scientists who claim the drink has an adverse effect on a person's intestines. The reports emerging in the mainstream media regarding the product affects its publicity, and if the trend continues, it will affect the brand equity. There have been reports indicating that there were traces of pesticides present in the drink. These reports claimed they had tested random samples of Coca-Cola available in the market, and they identified some traces of pesticides. This was a negative publicity, it affected the product, and it resulted in reduced sales. If such reports continue occurring, it demonstrates the product would meet its end.

Water management has been a great cause of concern for environmental organizations, and they have indicated that The Coca-Cola Company has been using large amounts of water. The environmentalists have accused the parent company of using vast amounts of water even in water scarce areas. With such accusations and lawsuits, the product is affected, and the sales volume decline instantly. The company needs to improve upon its water management and demonstrate that it cares for the environment. People like associating with a product that they view as been beneficial to them and to the environment. Reducing the global impact of the company would help improve the products brand equity.

Opportunities

There is potential to increase the sales for Coca-Cola in untapped markets. With increased global coverage, the.....

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