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Executive summary



1. Background

2. Missions

3. Vision

4. Values

Marketing Environment Analysis

1. Macro Environment


2. Micro Environment: Porters Five Forces Model


3. Internal

Marketing Analysis
1. Positioning
2. Marketing Mix
4. SWOT Analysis


Key issues


Marketing Plan
A. Objectives
B. Marketing Strategy
C. Action Plan



VIII. References

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Executive Summary:
Coca Cola Company is the worlds leading soft drink maker, operates in
more than 200 countries around the world and owns or licenses more
than 500 brands of nonalcoholic beverages.
This paper is a marketing plan recommended for Coca Cola Company.
Firstly, we are going to analyze the Coca Cola Company (PESTLE,
Marketing Mix and SWOT). Then, there are some key issues regarding
Coca Cola Company concluded after the analysis. And finally, we have

gave solutions for Coca Cola to solve the issues.

1. Background:
Coca-Cola (also Coke) history began in 1886 when the curiosity of an
Atlanta pharmacist, Dr. John S. Pemberton, led him to create a
distinctive tasting soft drink that could be sold at soda fountains. He
created a flavored syrup, took it to his neighborhood pharmacy, where
it was mixed with carbonated water and deemed excellent by those
who sampled it. Dr. Pembertons partner and bookkeeper, Frank M.
Robinson, is credited with naming the beverage Coca-Cola as well as
designing the trademarked, distinct script, still used today.
The first time appear of Coca Cola in Vietnam is in 1960. After that,
Coca-cola Indochina Pte Company was established officially in Vietnam
on August 1995. Since then, Coca-cola has some locations in Vietnam,
which were united as one Beverage Company called Coca-cola Vietnam
with the head office located in Thu Duc District, Ho Chi Minh City.

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2. Missions:
Coca Cola identified their missions are:
o To refresh the world - in mind, body and spirit.
o To inspire moments of optimism - through our brands and
o To create value and make a difference everywhere we engage.
3. Vision: To achieve above missions, Coca Cola Company has developed
a set of goals, which they will work with their bottlers to deliver:
o Profit: Maximising return to shareholders, while being mindful of
our overall responsibilities
o People: Being a great place to work, where people are inspired
to be the best they can be
o Portfolio: Bringing to the world a portfolio of beverage brands
that anticipate and satisfy people's desires and needs
o Partners: Nurturing a winning network of partners and building
mutual loyalty
o Planet: Being






o Productivity: Be a highly effective, lean and fast-moving
4. Values: Coca Cola shared values that they are guided by are:
o Leadership
o Passion
o Integrity
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o Accountability
o Collaboration
o Innovation
o Quality
Marketing environment analysis:
1. Macro environment:
a. Political:
Government has the power to set fines for the companies not meeting
their standard law requirements. The changes in laws and regulations,
such as tax policy, government regulations, social welfare policies,
political risks might affect the company as well as their entry in foreign
countries. The political conditions, even the civil conflict can impact to
the markets and other governmental changes that affect their ability to
penetrate the developing and emerging markets that involves the
political and economic conditions. However, Coca Cola continuously
monitoring the policies and regulations set by the government.
Tax policy
Tax is the issue which any business operating in Vietnam is under the
impact of laws and regulations. However, the tax service has recently
questioned for many large foreign companies in Vietnam. Tax Agency
has written requests for consideration local inspection hole operations,
profitability of the business to conclude if companies report losses for
the purpose of increasing costs to evade taxes or not. Among them,
Coca Cola Company reported losses in continuous operation for 20
years in Vietnam.
The biggest difficulty is prompted many experts to be the multinational
corporations often use the " guise " of proprietary material or
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technology , that agency is difficult to determine the actual cost of

inputs Vietnam businesses spend. Coca Cola, according to the tax
agency costs flavorings imported from the parent company accounts
for about 70-85 % of the cost of plant in Vietnam. The data cannot be
determined by the agency because of not knowing whether the
proportion of flavor additives from Coca Cola parent company in
Vietnam is, compared to other markets to put conclusions. However,
this is the major reason Coca cola Vietnam proves for their losses to
dodge the government policy of tax. It also makes a bad reputation for
Coca cola in Vietnam.
Government regulations
As a famous brand, manufacturer, distributor and seller in beverage
industry, the Coca-Cola Company and other soft drink manufacturers
are subject to antitrust laws of general applicability. The Company may
have an exclusive right to manufacture, distribute and sell a soft drink
product if its product is in substantial and effective competition with
others of the same general class in the market. It is the general
regulation in business in every country. However, there are some
regulations strictly limited and prevent the expanding. For example,
the Coca cola has experienced public policy which challenges them
about the sale of soft drinks in elementary, middle and high schools. At
January 1, 2006, a number of states had regulations restricting the sale
of soft drinks and other foods in schools. Many of these restrictions
have existed for several years in connection with subsidized meal
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programs in schools.i This regulation cares about the youths health as

well as nutrition. This led to obesity among students and it affected
directly to the business of Coke Company in that period. Moreover, the
restrictive legislation, if it enacted for a long time widely, it could
impact on the Companys products, image and reputation as well.
Social welfare policies
Coca cola offer high-quality brands and reputation in many countries
on over the world. Company significantly understand and believe that
everyone should have benefit. The business should bring benefit and
refreshment to the people, which is central to the way The Coca cola
operate in communities around the world. The company plays the role
as a good neighbor and responsible citizen by helping people. In
Vietnam, the company set up many regional and local foundations,
organized charity programs in local. Some reality programs such as
Vietnam pushcarts program helping economically disadvantaged
women build sustainable livelihoods; Supporting education and youth
development scholarships to support students in orienting and
developing career in the future
Overall, Vietnam has a steady political condition. All above pose
opportunities for Coca cola Vietnam to develop the reputation with
social programs. They do these well to gain the people support.
However, political situation or state regulation is also the important
point that Coca cola Vietnam must notice. It can prevent their
operation effectively in the future.
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The opportunities for Coca Cola are Social welfare policies to

improve their image.

The threats are Tax policy, government regulations to disclose
negative information and labels.
b. Economic:
Economics has a huge impact to the business of Coca Cola company.

The economy in Vietnam is growing rapidly. It is advantages for the

company's operations. Announced $ 300 million investment in Vietnam
in 3 years to 2015, president of Coca-Cola, Muhtar Kent said that this
was still an attractive market as consumption of new people with 20%
of the average world.
In Vietnam, the amount of Coca cola users is competitive with many
other beverage companies. Vietnam is a attractive market for domestic
and foreign beverage companies. Internal company operating in this
industry such as Tan Hiep Phat is very successful in touching
consumers. The competitor, PepsiCo always plays important role in
sharing the marketing with Coca cola Vietnam. There are both
opportunities and challenges in consumption in Vietnam market.
The predicted GDP of Vietnam in 2014 will increase to ~ 6%. Growth of
economy will directly effect on the purchasing power of consumers.

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This growth will rise prices of goods and encourage customer to

spending tightly.
Moreover, the inflation also effect on the price of goods.

Coca-cola inflation adjusted price from 1997 to end of May 2013

Vietnam has a high inflation rate per year. It is also control by the
government but its level still impact to the companys operation, and
particularly affects to the price of Coca Colas products. In addition, the
inflation rate of Vietnam economy also has been fluctuating for years,
which also affect directly to Coca Cola consumption in an unexpected

The opportunities: consumption patterns make impacts in

growing beverage consumption in Vietnam market.
The threats: Inflation rate require to increase the price of
products. So the price competition also increase.
c. Social, demographic:
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Healthier lifestyles has strongly influenced the sales of non-alcoholic

beverage sector for many customers desiring to bottled water and diet
colas like Coca-Cola Light or Zero, instead of beer or other beverages.
Most of the population is within the youth. Many customers are more
concerned about their health in a long term. In Vietnam, young people
more and more prefer to use soft drinks nowadays.
Characteristic in demographic of Vietnam is encouraging the growth of
spending. With 56% of population is under 30 years old, labor force is
Besides the young population factor, income distribution also is the
impact on business of Coca Cola. The ability of paying for beverage
depends on income. People who have a high income are willing to pay
for beverage more usual. Income distribution is not equal among all
people. However, in urban and industrial areas, where has economic
development capita income is higher than other places. In Vietnam,
HCMC, Hanoi and other big cities have more amounts of people using
Coca cola.
Additionally, another factor is the buying habits. Retailers can use
consumer buying habits to facilitate their own product placement and
retail strategy. Buying habits can be understood with the mean of the
buying habits of different people. Cokes price is not expensive which
adapt to most of people in every class. However, people who have
ability to pay have more chance to choose Coke for their beverage than
someone who cant afford and do not want to spend their money for
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entertainment beverage. Otherwise, the youth trend to drink Coke

more than the older or the kids.

The opportunities:
Demography make increase demand for healthy food

and beverage.
Income distribution,






growing bottled water consumption








crowded the places are, the less products company can sale.)
d. Technological:
Technological techniques are valued. This creates opportunities for new
products and advanced products. High and modern technology will
increase the companys productivity and produces best drinks for the
Researches are necessary for the understanding customers and
create the new products. Coca Cola company always observe and
update information from their customers. This aims to satisfy
customers. The studies were conducted to investigate the habits or
income, ability to pay, including taste and health needs. From the study
of mass, Coca Cola launched products and services best suited to the
age and needs of the customer. Diet Coke is an example.
High technology offers many advantages for producing, packaging.
In order to continually grow the business, The Company need to be
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increasingly efficient in use of resources. This is required new

investments in technology, innovation, a significant amount of










agricultural resources will enable Coca colas system to meet the new
market demands.
Internet leads to the efficiency of company's advertising, marketing
and promotional programs. The new technology advances of television
and internet that use incomparable effects for advertising through the
use of media. Those advances make the products seem attractive. This
supports the selling promotion of the products. Coca-Cola in media
tends to use this technology so, to sell effectively its products.
The opportunities: Researches, high technology, internet
The threats: Internet have a bad sight also (any scandals can
spread widely and quickly)
Technology is good and bad too. It can contribute to the improvement
but getting down if carelessly. The important is how to use it.
e. Environmental:
The Coca cola work for low carbon products, zero waste business, and
inspire and lead change for a more sustainable future. Coca Cola
worked with the Carbon Trust to calculate the carbon footprint to make
the business more environmentally responsible. Since 1994, the
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Company has managed to reduce the weight of our plastic bottles by

38.5%. At the same time, Cokes glass bottles are already 37% recycled
and cans are 50% recycled aluminum. The Company also introduced
Plant Bottle packaging in 2011, which is 100% recyclable and made
partly from sustainable plant materials, reducing the reliance on fossil
fuels for plastics.
Season factor also is an important factor. Products of coke are
mentioned as beverages, which help people to slake. Its most suitable
for summer when the weather is hot. Therefore, the consumption is
effected on season. In summer, the demand of beverages is increasing,
it make consumption also will be increased.

The threats: unsafe environment and product

f. Legal:
Competitive laws are the important laws for business and their same
sector companies for a healthy market. However, competitive in









advertisements, unhealthy competition or limit of competition

However, it more perfect day by day. Government has built a system of
legal to solve these problems.







manufacturing enterprises, especially the production of food and










manufacturing process can negatively pollute the environment of land,

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water, air ... The law stipulates the allowed level of the toxic wastes
into the environment. If exceeded, these businesses can be fined, or
suspended business if toxic levels harm to environment unacceptably.
Vietnam put a great concern in these issues nowadays. There are many
company violated this law of environment protection. Aware of this
issue, Coca cola usually organize program for environmental protection
such as the Happy Recycling which is supported by people.
Health and safety: The Coca cola are committed to conducting
business in ways that provide all personnel with a safe and healthy
work environment. Cokes Safety Management System Standards and
supporting requirements are for worker safety and loss prevention
(TCCSMS). TCCSMS defines the systematic approach to managing
occupational safety and health and loss prevention. The system
globally operates under the same standards and requirements. The
Company also has a statement of occupational safety and establishes
the Safety Board of the Company as a body authorized to solve and
cares about health and working conditions of employees.
Product safety is the most concerned issues of consumers. The Coca
cola always cares about the safety and quality in every parts from
products to services. The core criteria of Coke are to ensure safety and
quality through strong governance and compliance with applicable
regulations and standards.
In Vietnam, the problem of product safety is extremely important.
There are so much food poisoning in current time that make people
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worry and not believe in undefined drinks and foods. Coca-Cola

Vietnam customers accused of being "prime" the bottle mold Minute
Maid Teppy (fresh orange juice) type of 240ml, affecting the health of
consumers. In the document dated October 29, Coca-Cola unexplained
mold floating on the water bottle containing anything, whether
hazardous or not, which shows that the two bottles of orange juice
Minute Maid Teppy client was found Long An is only present in the
"isolated incident" occurred in manufacturing shipment. This document
is for that reason "error" in the bottle is due to the can "no longer make
bottle cap security tightness. This is unreasonable.
All above is to link to the success of Coca Cola so that they surely
keeps the promise of quality products and services. Documents of laws
or regulation, statements help The Coca cola maintain and improve
their reputation. However, it also requires the continuous efforts to
adapt these laws to bring the best products and services, especially in
a sensitive market like Vietnam.

The opportunities: Competitive laws, Product safety

The threats: Environmental protection laws, health and safety
2. Micro Environment: Porters Five Forces Model:
a. The threat of new entrants Low

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To enter the soft drink industry, it requires high fixed costs for
production, warehouses, trucks, labor and marketing activities. As
there are limited bottlers, new entrants may need to build their bottling
plants. It requires large amount of capital. This makes it extremely
difficult for an entrant to compete with the incumbents and gain any
Customer Loyalty/ Brand Image
Coke has a long history of heavy advertising. This makes them
dominate with their strong brand name and loyal customers all over
the world. This makes it virtually impossible for a new entrant to match
this scale of share in this market.
Fear of Retaliation
It is very difficult to enter into a market place where already wellestablished players are present such as Coke and Pepsi in this industry.
So these players will not allow any new entrants to easily enter the
market. They will give a tough time to new entrants which could result
into price wars, new product line, etc in order to influences the new
b. The threat of substitutes products Medium
This industry is enriched with enormous statistics of substitutes such
as: water, tea, beer, juices, coffee, etc presented to the endconsumers. As consumers concern more about health, bottled water
and sport drinks are increasingly popular. This trend is epitomized in
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the beverage consumption pattern of the ageing baby boomers. But all
the suppliers of these substitutes need massive advertising, brand
equity, brand loyalty and making sure that their brands are effortlessly









counterpart the existing players' offers or diversify business by offering

new product lines of the substitute products to safeguard themselves
from rivalry

Aggressiveness of substitute products in promotion

Soft drink industry companies spend huge amount of money on

advertisement and marketing to differentiate their products from
others and also create brand equity, base of loyal customers and
increase visibility

Switching cost

Switching cost of the substitute products is very low so consumers can

easily shift towards the substitute products.

Perceived price/ value

Perceived price/ value in this industry is very low because all products
are comparatively same and are only differentiated by promotional

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c. Bargaining power of Suppliers Low

The Coca Cola Company is the largest beverage producer in the world
and exerts significant power over its suppliers to receive the lowest
price available from them.
Most of the raw materials desirable to manufacture soft drink are basic
merchandise such as flavor, color, caffeine, sugar, and packaging etc.
The suppliers of these commodities have no bargaining power over the
pricing due to which the suppliers in soft drink industry are relatively

Number of important suppliers

Raw materials for soft drink are basic commodities which are easily
available to every producer and have low cost which makes no
difference for any supplier.

Switching cost

All the raw material ingredients are basic merchandize and easily
accessible to manufacturer. Switching cost to the suppliers is very low;
manufactures can easily shift towards the other suppliers.

Availability of substitutes

Soft drink products have standard raw material ingredients which could
not have any alternatives or used instead of the actual ingredients

Threat of forward integration

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Threat of forward integration is very low in this industry because

manufactures of the soft drinks need huge manufacturing plants,
bottling network, strong distribution network and best shelf space.
Suppliers could not afford such kink of well-established network.

Importance of buyer industry to suppliers

Soft drink industry is very important to the suppliers because buyers

purchase larger amount of raw material. This encourages suppliers to
remain in good contact with buyers.

Suppliers' product an important input to the buyer's

Product of the suppliers is very important input for the manufacturers

in this industry because these products do not have any substitute
d. Bargaining power of Buyers High
The buyers of Coca-Cola and other soft drinks are mainly large grocers,
convenience stores, supermarkets, and restaurants. The soft drink
companies distribute the beverages to them for resale to the
consumer. The bargaining power of the buyers is strong. Large grocers,
convenience stores, supermarkets and fast food restaurants buy large
volumes of the soft drinks, which allow them to bargain a lower price.
Besides, with end-user, they have many choices because of diversity in
beverages providers. Moreover, in the currently, healthy drinks are
more concerned. Therefore, buyers can have a larger bargaining power
on the soft drink.

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e. Competitive rivalry within industry High

The industry is almost dominated by the Coke and Pepsi. This industry
is well known as a doupoly with Coke and Pepsi as the companies
competing. These both players have the majority of the market share
and rest of the players have very low market share. Otherwise;
competition is comparatively low to result any turmoil of industry
The competitive pressure from rival sellers is the greatest challenging
faced by Coca-Cola. PepsiCo is the main competitor for Coca-Cola and
these two brands have been in a power struggle for more than a
century. PepsiCo is fiercely competing with Coca Cola over market
share. Coke and Pepsi primarily are competing on advertising and
differentiation rather than on pricing. This resulted in higher profits and
disallowed a decline in profits. Pricing war is nevertheless experienced
in their global expansion strategies. Moreover, there are some rivals of
Coca Cola in Vietnam market, such as Wonder Farm, Tribeco, Tn Hip
Pht, Although Coke goes behind in the beverage field in the world, it
is a pioneer in the Vietnam market

Composition of competitors

Except the Coke and Pepsi, other competitors are of unequal size
especially in local markets. Coke and Pepsi both players have the
majority of the market share and rest of the players have very low
market share.

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Fixed Storage cost

This industry needs huge manufacturing plants and contracts with

bottling network companies. These contracts make sure that bottler's
must have standard manufacturing plant; these plants need huge
capital and exertion.

Degree of differentiation

Marketing and product differentiation have become more significant.

Coke and Pepsi mainly are competing on advertising and differentiation
rather than on pricing. Coke has diverse advertisement campaigns
according to conditions. Coca-cola is recognized as the bet-know brand
name in the globe. More prominetly, its consumers would not do
without it, and have established a loyalty.

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Strategic Stake

Coke's core operation is the manufacturing and distribution both for

itself and beneath franchise, of non-alcoholic beverages and related
products. Because of the strategic stake the main brands of the Coke
has been around for a lot of years
3. Internal:
a. Distinctive competency The world leader in soft drink industry
Coca Cola has strong brand recognition across the globe. The company has a leading
brand value and strong brand porfolio. According to Business Insider, approximately
94% of the world population aware of the red and white logo of Coca Cola, and Coca
Cola is the 2nd understandable word in English. There are nearly 10,450 Coca-Cola
products are consumed in the world in each second. Interbrand, a branding consultancy,
ranks Coca Cola the top leading brands in their best global brands ranking in 2009 and
2010. In 2013, it valued Coca Cola at US$79,213 million.

Best Golobal Brands 2013 Report of Interbrand

Besides, Coca Cola owns a large porfolio of product brands: more than 500 brands, with a
profolio of more than 3,500 beverages; product lines include diet and regular sparkling
beverages, 100% fruit juices, fruit drinks, waters, sports and energy drinks, teas and
coffees, and milk. It owns and markets four of the worlds top five soft drink brands:
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Cocacol, Diet Coke, Sprite, and Fanta. The fact show that Coca Cola now significant
focus on carbonated drinks and forget about diversify product portfolio.
The best global brand in the world is strength of Coca Cola, it helps company

gained the worlds largest market share in beverage

Significant focus on carbonated drinks and undiversified product portfolio

are weaknesses of Coca Cola.

b. Resources:
- Manufacturing factories: Coca Cola has 3 manufacturing factories in Vietnam
located in Ho Chi Minh city, Hanoi, and Da Nang. In 2011, this three factories
were merged under centralize management structure, the factory in Ho Chi Minh
city plays the key roles, and the two others became subsidiaries of the Coca Cola
Vietnam in northern and central coast.
With three direct manufacturers in Vietnam, Coca Cola makes sure about their
number of products provided, saves both time and money instead of importing

from Coca Cola overseas.

+ Raw materials: carbonated water, high fructose corn syrup, caramel color,
phosphoric acid, natural flavors, caffeine
+ Materials: coca leaves produced by Stepan company (Illinois, America), high
quality bottles produced by Dynaplast Packaging Vietnam LLC., carton boxes

and paper packages produced by Bien Hoa JTC.

Distribution chanel: Coca Cola uses parallel distribution system, include 1 level
chanel and 2 levels chanel.
+ 1 level chanel: Coca Cola distributes products directly to major consumption
points such as supermarkets (Metro, BigC,) and key accounts restaurants,
hotels, where have large sales number
+ 2 levels chanel: Coca Cola uses sole distributors, wholesalers and retailers to
expand their products coverage. In 2009, Coca Cola has 56 sole distributors and
48 wholesalers in Hanoi, each of them take responsible for 1,200 retailers
The most extensive beverage distribution channel is a strength of Coca
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- Technological resources: Coca Cola owns numerous patents, copyrights and trade
secrets, as well as substantialknow-how and technology.

This technology

generally relates to the products and the processes for production; the packages;
the design and operation of various processes and equipment used in business; and
certain quality assurance software. Some of the technology is licensed to suppliers
and other parties.

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Intellectual property: Coca Cola own numerous trademarks that are very
important. Trademarks are valid as long as they are in use and their registrations
are properly maintained. Besides, Coca Cola is a very powerful brand with strong
identity and huge value (according to the Annual report 2013 of Interbrand
consultant company)

The intangible resource is a distinctive advantage of company

c. Strong finance background and good financial performance
In 2012, Coca Cola gained US$48 billion in revenue equal to the 70th largest economy in
the world. When Coca Cola penetrated in Vietnam market, they invested US$163 million
on building infrastructures and distributors. Annual revenue in Vietnam market is
approximate US$38,500 million. In 2012, Coca Cola announced a new investments worth
US$300 million in Vietnamin the next three years, and the total investment during the
period from 2010 to 2015 up to US$500 million. This new investments will be used to
build new infrastructures, branding, create more new jobs, and implement sustainable
development programs in order to catch the opportunities, enhance cooperation with
domestic customers and support community.
Strong finance background is an advantage helps Coca Cola to invest and
develop more infrastructures and distribbutors

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Marketing Analysis:
1. Positioning:
Coca Cola's brand positioning to consumers as carbonated soft drink
No. 1 in the world - a No.1 trademark product of world. Currently,
Coca-Cola still place at the third position in the list of top brands
with a value of U.S. $79.2 billion in 2013. Coca Cola is a global brand
and 98% people in the world knew Coca Cola.
The table below shows the brands value of top 10 leading brand in
the world from 2009 to 2013:

As a beverage product makes people awake and strong to back,

bring amazing pleasure. Coca-Cola still keep as a symbol of trust,
the inherent uniqueness.
The promise of Coca-Cola: "Bring benefits and enjoyable for all
those who are served by us", the company strives to make "fresh
new "market, enriching the workplace, environmental protection
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and strengthening public media. Through its activities and the first
step on the path of different development the benevolent efforts of
the company's focus on education and build dreams for youth.
Slogan: "All our customers in the world are people who deserve to
enjoy the best quality beverage".
Coca Cola lead far away Pepsi in the beverage market in the world,
but the various sectors of the Pepsi business helped it earn more
money. Specifically, the market share of Coke drinks is 42%
compared to 31% of Pepsi, but Coke's annual revenue reached only
35.2 billion compared with 57.8 billion figure of Pepsi. Each year,
Coke spent $ 2 billion on advertising, while Pepsi only $ 1.1 billion
loss for this activity.

In the context of social networks becoming more powerful today,

Coca-Cola and Pepsi both use social network to serve for branding. It
looks like Coke leads on the social network. Coke has 139 600








However, on Twitter, Coke has 391 248 followers, compared with

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some 142 766 people watched Pepsi. On Facebook, Coke has over
80 million fans, compared to 31 million of Pepsi.
2. Marketing Mix:

a. Products:
Coca-Cola is the most popular and biggest-selling soft drink in
history, as well as the best-known brand in the world.
Coca-Cola might owe its origins to the United States, but its
popularity has made it truly universal. Today, you can find Coca-Cola
in virtually every part of the world.
Nowadays, Coca-Cola Company has given many kinds of Coca-Cola
products, such as:

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o Coca-Cola Classic
o Diet Coke: also known as Coca-Cola light, is a sugar- and caloriefree soft drink with a deliciously crisp taste that gives you a light
boost in your busy day. Today, Diet Coke/Coca-Cola light is one of
the largest and most successful brands of The Coca-Cola
Company, available in over 150 markets around the world.
o Coca-Cola Zero: was created with young adults in mind and
offers great Coke taste, uplifting refreshment and zero sugar.
In Vietnam market, Coca-Cola Classic and Diet Coke (Coca-Cola
light) is popular than Coca-Cola Zero.
In additions, Coca-Cola Vietnam has continued doing research
and developing more products to serve Vietnamese consumers:
o Fanta: with Orange, Strawberry and Fruit taste. Fanta is the
second oldest brand of The Coca-Cola Company and our second
largest brand outside the US. Fanta Orange is the leading flavor
but almost every fruit grown is available as a Fanta flavor
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somewhere. Consumed more than 130 million times every day

around the world, consumers love Fanta for its great, fruity taste.
o Sprite: Sprite is the world's leading lemon-lime flavored soft
drink. Sprite is sold in more than 190 countries and ranks as the
No. 3 soft drink worldwide, with a strong appeal to young people.
Millions of people enjoy Sprite because of its crisp, clean taste
that really quenches your thirst. But Sprite also has an honest,
straightforward attitude that sets it apart from other soft drinks.
Sprite encourages you to be true to who you are and to obey

Schweppes Tonic and Soda
Dasani water
Samurai energy drinks
Minute Maid fruit juice

Segmentation in Vietnam market: Coca-Cola Company noticed that

Vietnam is a diverse market, so Coca-Cola was oriented its products
into the youth segment (with sophisticated style, youthfulness and
enthusiasm). That was the right direction of Coca-Cola when it was
successful and well received by the youth a lot. Besides, Coca-Cola
also focused on geographic characteristics in Vietnam, and focused
on residential areas in detail (big cities).
b. Packaging:
- Can: 330mL
- Glass bottle
- PET (polyethylene terephthalate) Plastic bottle: 1.5L and

Package: 24 cans/box or 6 bottles/block, etc.

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packaging and design become more beautiful and

more convenient. With the original design, this
company recently provided the new PET plastic
bottle 390mL to serve the shopping needs of
customers. In particular, the body of new PET
plastic bottle is designed and optimized to fit hands
and help to increase the ease of using product. For
instance, Company give the design of Fanta Fun,
this type of bottle with fancy shape create the
unique look for this products.
Coca-Cola Vietnam always change the image in package depend on
seasons or events, such as in Tet Holiday, it uses the image of
swallow bird (the symbol of Spring) in all designs can, bottles,
boxes. Or in some special events like World Cup, Coca-Cola products
use colorful images of soccer players and some countries flag.

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Note: about the materials of all packs:


Glass bottles are 100% recyclable and contain an average of

30% recycled materials


terephthalate) and are 100% recyclable

All cans are made from 100% recyclable aluminum and





contain around 50% recycled aluminum

c. Price:
Coca-Cola Company set price for products based on the value
received of customers. It realized that the buyers value
perception is more important than the spending cost of sellers, so
this company built the prices depend on the customers
perceived value.
Coca-Cola Company






penetration when entering Vietnam market to hope that it will

attract a large number of customers and gain the market share.
Pricing by products: Coca-Cola Company has given many
products, so they are different in form, size, materials then
they are priced at different scales
Here are the numbers of comparing a kind of product in Vietnam
market. Currently, the price of Coke products in Vietnam market
is higher than the corresponding products of the same type, but
Page | 31

the difference in price is not high. It is possible to look through

the price list is updated recently between Coca-Cola and Pepsi:



Coca-Cola Classic

Can 330mL


Glass bottle




bottle 5.700

PET plastic bottle 1.5L


Diet Coke






Pepsi Classic

Can 330mL


Glass bottle


Plastic bottle 400mL


Plastic bottle 1.5L


Can 330mL


Pepsi Light
d. Promotion:









Companys marketers have used communication tools effectively.

They understand the psychology of consumers, and realize that
promotion activity is one of the best tools to promote the image
of any products. Coca-Cola Company has launched many

Page | 32

promotions to attract buyers, gain the market share and even get
the concurring from customers in social responsibility part. For
example, in 2013 and early 2014, Company has created some
promotion activities:
o Flip



the Lucky



10 th


September 7th in 2013. The target of this promotion is all

individuals living in the territory of Vietnam buying






Samurai, both plastic bottles and glass bottles). Person can

flip the bottle caps and find the lucky code under caps to
have a chance getting the prize of Vinaphone (Samsung
Galaxy S4, Sim kit,etc.)
o Happy New Year with Coca-Cola from 11th to 19th of
January in 2014. Company has collaborated with local
authorities to organize in 7 districts across the country in
order to contribute a cozy New Year and convey the good
wishes for people having difficult circumstances. That was
the 8th year organizing this activity to give gifts into poor
families and union members. Many Coca-Cola red trucks
and volunteers directly brought 2,500 gifts to each person
at Thuong Tin (HN), Dong Anh (HN), Hoa Vang (DN), Lien
Chieu (DN), Thu Duc (HCMC), Can Gio (HCMC), Cu Chi
(HCMC). The total amount given included 50 tons of rice,
7,500 bottles of soft drinks, valued at more than 1.2 billion.

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o In








impressive programs:
Launching new package with An Tai Loc
Film broadcast advertising of Tet Gan Ket in 10 TV

stations at 7:45 p.m on December 3rd, 2013

Program Create Tet Logo on Facebook Apps

e. Place:
All products of Coca-Cola are produced in three manufactories
sHanoi, Danang, Ho Chi Minh City. In 2001, Vietnam Government







Page | 34

management structure, with the main manager role of CCBV in Ho

Chi Minh City. Three manufactories in three parts of Vietnam
(Northern, Central and Southern) help Coca-Cola Company expand
the distribution network, which is the most important part for
the sales of company - in region and always provide products
enough for the retailers (supermarket, minimart, cafes, restaurants
) in those areas.
Because Pepsi biggest rival of Coca-Cola entered into Vietnam
market before, so Pepsi has reached more retailers than Coca-Cola.
So company often focus on expand and attract more retailers by
providing support activities such as gifting, support for decorating
store, financial support,etc.
3. SWOT:
a. Strengths:
The best global brand







value: According to Interbrand, The Coca Cola Company is the most

valued ($77,839 billion) brand in the world.
Worlds largest market share in beverage: Coca Cola holds the
largest beverage market share in the world (about 40%).



advertising: Coca



expenses accounted for more than $3 billion in 2012 and increased

firms sales and brand recognition. Coca Cola organized so many
interesting and attractive events. Besides, Coca Cola also invests
strongly in ads on television. These ads are so effective in popularity
image Coca Cola.

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Suitable price with almost social class: Coca Cola is very

popular beverage in the world and their price is also cheap. In
Vietnam, Coca Cola is suitable with every class of social included
pupils, students, etc.
Most extensive beverage distribution channel: Coca Cola
serves more than 200 countries and more than 1.7 billion servings a

Page | 36

day. In Vietnam, two main distribution channels of Coca Cola are

very effective:
Customer loyalty: The firm enjoys having one of the most loyal
consumer groups.

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Bargaining power over suppliers: The Coca Cola Company is the

largest beverage producer in the world and exerts significant power
over its suppliers to receive the lowest price available from them.
Corporate Social Responsibility (CSR). Coca Cola is increasingly
focusing on CSR programs, such as recycling/packaging, energy






stewardship and many others, which boosts companys social image

and result in competitive advantage over competitors.
b. Opportunities:
Bottled water consumption growth: Consumption of bottled
water is expected to grow both in the rest of the world.
Increasing demand for healthy food and beverages: Due to
many programs to fight obesity, demand for healthy food and
beverages has increased drastically. The Coca Cola Company has an
opportunity to further expand its product range with drinks that
have low amount of sugar and calories.
High technologies: High technologies offer many advantages for
producing, packaging. Technologies are developing day by day, this
is a great opportunity for Coca Cola to decrease the cost.
markets: Consumption of soft drinks is still significantly growing in
emerging markets, especially BRIC countries, where Coca Cola could
increase and maintain its beverages market share.
c. Weaknesses:
Significant focus on carbonated drinks: The business is still
focusing on selling Coke, Fanta, Sprite and other carbonated drinks.
This strategy works in short term as consumption of carbonated
Page | 38

drinks will grow in emerging economies but it will prove weak as the
world is fighting obesity and is moving towards consuming healthier
food and drinks.

portfolio: Unlike



competitors, Coca Cola is still focusing only on selling beverage,

which puts the firm at disadvantage. The overall consumption of soft
drinks is stagnating and Coca Cola Company will find it hard to
penetrate to other markets (selling food or snacks) when it will have
to sustain current level of growth.
High debt level due to acquisitions: Nearly $8 billion of debt
acquired from CCEs acquisition significantly increased Coca Cola's
debt level, interest rates and borrowing costs.
Negative publicity: The firm is often criticized for high water
consumption in water scarce regions and using harmful ingredients
to produce its drinks.
Brand failures or many brands with insignificant amount of
revenues: Coca Cola currently sells more than 500 brands but only
few of the brands result in more than $1 billion sales. Plus, the firms
success of introducing new drinks is weak. Many of its introduction
result in failures, for example, C2 drink.
d. Threats:
Changes in consumer tastes: Consumers around the world
become more health conscious and reduce their consumption of
carbonated drinks, drinks that have large amounts of sugar, calories
and fat. This is the most serious threat as Coca Cola is mainly
serving carbonated drinks.

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Water scarcity: Water is becoming scarcer around the world and

increases both in cost and criticism for Coca Cola over the large
amounts of water used in production.
Legal requirements to disclose negative information on
product labels: Some Coca Colas carbonated drinks have adverse
health consequences. For this reason, many governments consider
to pass legislation that requires disclosing such information on
product labels. Products containing such information may be
perceived negatively and lose its customers.
Decreasing gross profit and net profit margins: Coca Colas
gross profit and net profit margin was decreasing over the past few
years and may continue to decrease due to higher water and other
raw material costs.
Competition from PepsiCo: PepsiCo is fiercely competing with
Coca Cola over market share in BRIC countries. Although in Vietnam,
Coca Cola still leads the beverages market, PepsiCo is a strong
Saturated carbonated drinks market: The business significantly
relies on the carbonated drinks sales, which is a threat for the Coca
Cola as the market of carbonated drinks is not growing or even
declining in the world.
4. SWOT Analysis:




take S1. The best global brand in the world in terms

of of value ($77,839 billion)
S2. Worlds largest market share in beverage
S3. Strong marketing and advertising
Page | 40

S4. Suitable price with almost social class






S6. Customer loyalty
S7. Bargaining power over suppliers



consumption growth
O2: High technology
O3: Increasing demand for



S2+S3 vs O1+O4:
Develop high quality product, especially in
emerging markets
S2+S6+S7 vs O3:
Research and develop products which are
good for health of customers




consumption in emerging

W1. Significant focus on carbonated drinks
W2. Undiversified product portfolio
Improve weaknesses by
W3. Negative publicity


W4. Brand failures or many brands with

insignificant amount of revenues

Page | 41




W1+W2+W3 vs O1+O2+O3:

consumption growth

Diversified product portfolio, besides carbonated

O2: High technology

drinks to care the healthy consumers with amazing

O3: Increasing demand advertising programs. (related diversification).




and Products made from healthy materials (related



O4: Growing beverages



emerging markets

S1. The best global brand in the world in terms
of value ($77,839 billion)
S2. Worlds largest market share in beverage
Use the Strengths to S3. Strong marketing and advertising
reduce/avoid the impact S4. Suitable price with almost social class
of Threats






S6. Customer loyalty
S7. Bargaining power over suppliers

Page | 42




consumer tastes

S3+S6 vs T1+T4:
Provide many thank you programs or build up

T2. Water scarcity and the

wasting environment






T3. Legal requirements Create a fan page in social network (forward



negative integration)

information on product

S4+S7 vs T5+T6:
Take advantages of bargaining suppliers to


from enhance







T5. Negative publicity.

Buy with the suitable price to compete with


Saturated Pepsi Co (market development)


From these above SWOT, we are going to conclude following issues

regarding to Coca Cola Company.

Key Issues:
1. Undiversified products problem: Coca Cola is significantly focuses on
carbonated drink. Meanwhile, as we mentioned above, consumers
have become more health conscious and reduce their consumption of
carbonated drinks, drinks that have large amounts of sugar, calories
and fat. If Coca Cola still not develop their products, their sale could be
decrease fast.
2. Brand failures or many brands with insignificant amount of revenues:
Coca Cola currently sells more than 500 brands but only few of the
brands result in more than $1 billion sales. Plus, the firms success of

Page | 43

introducing new drink is weak. Many of its introduction result in

3. Competitor Pepsi: Pepsi is a very strong competitor of Coca Cola. If
Coca Cola does not keep the development, it is completely possible

that Pepsi can be exceeding Coca Cola.

Marketing Plan:
A. Objectives:
To make solutions for above issues regarding Coca Cola, we are
going to set following objectives:
1. Developing new potential products.
2. Bringing images of new products popular to customers in an
effective way through marketing strategy.
3. Increasing market share.
B. Marketing Strategy:
Coca-Cola is one of the leading manufacturer in beverage industry
in the world. Coca-Cola offers variety of brands such as Coca-Cola
Classic, Diet Coke, Fanta, Sprite, Dasani water, etc. The Coca-Cola
brand has been adopted the strategy of global brand. They are
considering the world market as single market place and use
consistency marketing strategy for many years. However, now the
trend is differencing marketing campaign for typical region of the
Product Life Cycle:
Product go through a series of distinct stages: Introduction, growth,
shake out, maturity and decline. In the world market, Coca-Cola is
defined as a dominant player in United States, Europe and Asia,
Africa. In U.S.A & Europe it has reached maturity stage where it cant
expand its market more but if we consider Asia, it is still in the
growth phase. Coca-Cola is currently going through the maturity
stage in Western countries. This maturity stage lasts longer than all

Page | 44

other stages. Management has to pay special attention to products

during this stage of the product life-cycle. During the maturity stage,
products usually go through a slowdown in sales growth. According
to statistics from vietstock.vn, in the fourth quarter (2013), sales of
Coca-Cola decreased by 4% compared with the same period the
previous year, from $ 11.47 billion the same period a year earlier to
11.04 billion U.S. dollars. Meanwhile, in the fourth quarter (2013)
profit fell 8.5%, from $ 1.87 billion the same period a year earlier to
1.71 billion U.S. dollars. During the third quarter, Coca-Cola's profit
fell 24% over the same period the previous year, revenue was only
5.66 billion U.S. dollars.
Specializing in Vietnam, Coca-Cola is concerning as a growth stage.
Although declaring loss in many years but the revenue of Coke is not
stop increase in many years. According to statistic of Ho Chi Minh
City tax department, the revenue of Coke in 2010 is double times










Page | 45

So the strategic market objective of Coca- Cola in Vietnam should

increase competitive position and invest more.
Business Strategy:
When investigating Miles and Snow's four strategies, defenders,
prospectors, analyzers and reactors, we define that Coca-Cola act as
an analyzer. We think this strategy suitable for Coca-Cola market in
Vietnam. Analyzer strategy is between Prospector and Defender
strategy. It attempts to maintain a strong position in its core
product-market and continue research and develop to expand new
product that regarding to exist product line.
Pepsi- the main competitor of Coca- Cola has the number of
beverage product equivalent to Coca in Vietnam. Coca-Cola core
product is Coca-Cola and it has many products such as Fanta, Sprite,

Page | 46

Samurai that developed from carbonated products. They develop

their added product in each brand such as Strawberry Fanta, Forest
Fruit Fanta of Fanta line beverage.
From objectives mentioned above, we are going to offer some
solutions for improving the marketing strategy performance of Coca
Cola Company:
1. Product Strategy:
Research and development new beverage packaging and product
portfolio of Coca-Cola is one of the solution for Coca- Cola to expand
competition. It can help gain brand value and improve the
customers satisfaction.
R&D products which are good for health of customers, made from
healthy materials can change the negative image of Coca with
difficult people and expand market share. Improve packaging by
beautiful and creative design, useful to create new feeling for
customer: unique, funny, style and fresh.
Besides good design, the beverage container is unique in the way
the consumer is encouraged to re-use it. The material to produce
beverage is friendly with environment (eco- friendly). Increase brand
value for Coca- Cola. This product can satisfying customers.
2. Price Strategy:
Price strategy of coca in order to provide appropriate price to
consumers and make them comfortable about price and product








Coca-Cola have a high market share, competitor pressure has forced
customer sensitivity to price to be fairly high, sales volume is of

Page | 47

course high and profit margin is fairly low as the Coca-Cola products
are fast moving consumer goods. The price strategy based on the
customers psychology. For example, the housewives also prefer to
buy the cheaper products. This points to penetration strategy.
Penetration pricing means the setting of lower rather than high
prices to achieve potentially dominant market share.
This can only be done where demand for the product is believed to
be highly flexible, basically demand is price sensitive and either new
consumers will be attracted, or existing consumers will buy more of
the product because of a low price.
A good penetration strategy may lead to large amount of sales and
large market shares. The main product may be priced low to attract
sales, customers are then sold accessories. This strategy will work
nicely in promoting re-use of Coca-Cola packaging via a beverage
Price Penetration







standardization is important. The product that achieves high market

penetration often becomes the industry standard, in regards to the









standardization of how consumers use the beverage container.

Currently, the price of Coke products in VN market is higher than the
respective products of the same type, but the difference in price is
not high.
3. Advertising:
Advertising is very important with any brands and products,
especially with new products. There are Advertising Forms that Coca
Cola Company can apply:

Page | 48

Advertising Form

Strengths &Weaknesses

Tools or tactics


Strengths: Seen by a large

Coke have incorporated

audience, hard to avoid, large

interesting billboards before,

presence, people highly

they frequently advertise on the


neon displays in both

Weaknesses: Because its an

Piccadilly Circus in London

old form of advertising and so

and Times Square New York.

widely used consumers learn to

They have also used 3D

ignore it, doesnt target

billboards in the United States.


Unnecessary for product

launch as consumers will
probably be more inclined and
used to this form of advertising
by 2015.

TV Adverts

Strengths: Seen by a large

Coke have good cult TV

audience, can be targeted on

adverts, such as their Christmas

specific programmes/channels,

advert which consumers pay

good communication device.

attention to seeing around this

Weaknesses: watershed on

time of year. Watershed on

junk food soon in place, Sky+

junk food advertising will

and digital TV allows skipping

prevent current Coca-Cola

of adverts.

products being advertised, like

McDonalds though, The
proposed idea will help combat
this and mean this form of

Page | 49

advertising is still viable.


Public/Street Furniture

Online advertising

Strengths: Target market

Advertising in lifestyle

specific, readers highly

magazines with any emphasis


on sports, fitness, health and

Weaknesses: consumers have

crossovers in cokes lifestyle

learnt that glossy magazines

image would be a viable form

are full of adverts and flick

of advertising for the new

through them.


Strengths: Seen by a large

Continue Coca-Colas

audience, events or places e.g.

sponsorship of Olympics and

football stadium, good for

UK football leagues with

brand association.

emphasis on Cokes range of

Weaknesses: Not long

healthier drinks. Good for

timescale, needs to be updated

brand image lifestyle and looks

frequently to attract audience.

better for cokes social

Not always reaching target


Strengths: Can be targeted on

In the form of email to

specific websites, good

subscribers, informing them on

communication device, cheap

new product. TV style adverts

Weaknesses: Emails from

can be directly shared with

businesses can be flagged as

users on the social networking

SPAM, Opportunities in social

site YouTube and good adverts

networking sites for viral

have created cult followings on


the Video websites.

Page | 50

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Besides, in Vietnam, there is just one official website of Coca Cola

Company, but that website is too simple and boring, it cannot
attract customers.

In products category, there is only 1 article

Therefore, Coca Cola Company should build a new website included:

Introduction about Coca Cola Company: this helps breading the

image of company more popular.

Products: bringing customers about images and information of

products such as price and features.

News: providing customers last new information regarding to

Coca Cola Company and its products.

Promotions: providing customers information about promotions of

Coca Cola Company.

Interactive activities: Improve the interaction between customers
and website. For example, website can provide some interesting

Page | 52

games regarding products of Coca Cola Company. It should also

provide online support tools for customers.
4. Personal selling:
The sales force needs to communicate with current distribution
channels for Coca-Cola. The instant Personal selling of Coca Cola
Company in Vietnam is quiet good. But in Vietnam, Coca Cola should
open more vending machines which can serve customers 24/7.
5. Sales promotion:
Now, Sale promotion is the well way to impact on consumer
behavior, stimulate sales. The promotion program must match
lifestyle, psychology and personality of customer, such as winning
promotion program on Coke products with attractive prizes (travel,
dinning out with idol, smart phones, music concert tickets for Kpop,
US-UK, etc.)
However, more promotions will cause psychological addiction by
promotional for customer, Coke should not make "addiction",
especially with targets customer is younger, which is not high
We find some types of sales promotion and analyze strength and
weakness, tactics and tools to complete them:
Sales Promotion
Price deal:

Strength and Weakness

Strengths: : Great

A temporary reduction

response in Fast
Moving consumer

in price.

goods where brand

Loyalty isnt

Weaknesses: Sales

Tactics and Tools

As the pricing
strategy is
penetrative this
would be a well
worthy promotion

Volume might not

Page | 53

reach desired target

and profit margins
might not meet
Strengths: Provides

Loyal customers


incentive to be brand

with the refillable

Consumers collect

loyal, new customers

bottle will reap

points, miles, or credits

encouraged to switch

benefits of price

for purchases and

brands to get reward.



Loyalty rewards

redeem them for

advertising has to be


in place about the


Compared to
because they
wont be

Strengths: Good

Contests linked


prizes are likely to

with Coca-Cola

The consumer is

draw repeat


automatically entered

purchases to try

companies, such

into the event by

Weaknesses: Large

as competitions


purchasing the

brands are likely to

for tickets to
sporting events.

put people of thinking

their chances of
winning is lower.

Page | 54

6. Public relation:
The PR activity bring a new positive image, creative, energetic,
familiar and close to customers for Coca Cola.
Press release can increase brand image appeal, show socially
responsible of company. Coca Cola can often focus on activities for
young people such as organize or sponsor a number of sports
activities, trips, adventure, and singing contest ...to increase its level
of perception and trust from customer.
7. Direct marketing:
Direct marketings effectiveness can be measured directly. If Coca
Cola Company sent out one million mail advertisements/promotions,
and ten thousand customers can be tracked as having responded to
the promotion, Coca Cola can see the campaign led directly to the
Besides email, Coca Cola should also take full advantages of social
networks such as Facebook, Youtube, etc. Customers can respond
directly through these channels.
C. Action Plan:
Following is Action Plan for launching products

Take new product

Start Date

Complition Date

to customers to
Market Test

see the reaction of

2 months

customers to
Press Release

-Announce the

After finish the

born of product

Market Test

1 day

-Portray a better
brand social
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Bread image of
After Press
TV Advertising

product to

6 months

Sales Promotion

Initial price
reduction to
increase market

After Press
2-3 months

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Control market testing

Collect feedback from customers After finish



and Market Testing

marketing plan
Evaluate based on responsiveness 3 months after

Control Advertising

(view, feedbacks) of customers running


the company website, Advertising

social networks.
Sales Evaluate from the Sales Report 2 months after


and have the suitable adjustment

running Sales

VIII. References:

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