Invented in 1886 by John Pemberton, Coca Cola recipe has a long history behind it. This day’s Coca-Cola brand is recognized around the world. Everyone can identify the brand from products such as Fanta, Sprite, Diet Coke or Dr. Pepper. During the years the company comes up with different slogans for products such as: “Coke is it”, “Catch the Wave”, “ Can’t Beat the Feeling” or “ Enjoy Coca Cola” which is today’s slogan.
Other packages than the traditional 6.5-ounce bottle contour were introduced for the first time in 1950. Consumers could buy the drink on large 10, 12 and 26-ounce versions. Fanta, Fresca, Tab and Minute Maid were introduced in 1960 as new products.
During the years the company has been successful and has become an icon of the American culture.
The Chartered Institute of Marketing defines marketing, as is the management process responsible for identifying, anticipating and satisfying customer requirements profitably.
According to The American Marketing Association marketing is defined as an organizational function and set of processes for creating, communicating, and delivering value to the customers and for managing customer relationships in ways that benefit the organization and its stakeholders.
Hassel (2012) defines marketing as a social and managerial process by which companies create value for customers and build strong customer relationships in order to capture value from customer return.
What these definitions have in common is the satisfaction of customers’ wants and needs, the creation of value in return and create relationships with customers. Also in these definitions, it is noticed how important is management in marketing.
The marketing process is about identifying customers’ needs bringing in the market products to satisfy these needs following these important steps: analyzing the situation, developing a marketing strategy, making a decision in terms of the marketing mix, implementing and controlling the market process and strategy.
Company Coca-Cola analyzes the situation very carefully studying the internal and external factors in the business. The company is using the SWOT model for the internal situation and the PEST model to monitor external factors that could provide opportunities or challenges.
After the situation analysis is complete, Coca-Cola develops a marketing strategy that includes marketing analysis, identify the customers and how to use the 4 Ps.
Marketing mix decisions are the most important stage of the marketing process for Coca-Cola. This is where the marketing tactics for each product are determined.
Implementing is the process of turning plans into actions and involves all the activities that put the marketing plan to work.
Monitoring and controlling allow the business to check for variance in the budget and actual. This is important because it allows Coca-Cola to take the necessary steps to meet its marketing objectives. Coca-Cola’s three tools to monitor the marketing plan are sales analysis, market share analysis, and marketing profitability analysis.
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According to BusinessDictionary.com marketing concept is the management philosophy where the companies goals are best achieved through the identification and satisfaction of customers’ stated and unstated needs and wants.
A company can satisfy customers’ needs by choosing from the next five orientations:
- Product Orientation. It is focused on the product with higher quality to make a profit.
- Production Orientation. It is focused to produce mass production for profit.
- Sale Orientation. It is focused on sales techniques to make a profit.
- Market Orientation. It is focused on market research to found what customer needs and then developing products to make profits.
- Societal Orientation. It is to identify the public and focused on them and makes profits.
Coca-Cola is market-orientated because the company’s products Coke Zero and Diet Coke were introduced on the market after the company did market research to find what people liked and want. Coca-Cola is more focused on the younger generation but also on the adults. The consumers of Coca-cola are not limited to drink only coke, they can choose from a variety of juices and mineral waters. Therefore Coca Cola has to be market-orientated to satisfy customers’ wants and needs and keep making profits. The advantages of being marketing orientated are identifying the customers’ needs and then satisfied those needs. One of the disadvantages of using marketing orientation is that it is possible that customers give a false need impression because sometimes customers can be confused about what they want.
For this task to analyze the macro and micro environmental factors for Coca Cola organization I will use the PEST and SWOT models.
- Political factors can support or not Coca-Cola. For example, if the government is increasing the taxes the company must increase its price and this can reduce substantially the profits.
- Economical factors. In times of recession can influence the consumer may not buy the Coca-Cola products and this can decrease the profit.
- Social factors. More and more people try to live a healthier lifestyle and this can negatively impact the non-alcoholic industry. Because of the high sugar and caffeine many see content Coca-Cola as unhealthy thereby consumers will not buy it and profits will decrease.
- Technological factors. Technology helps the company to produce and sell the products more efficiently by advertising on television and with faster lines of production……..