SITUATIONAL ANALYSIS

Market Analysis: The market analysis investigates both the internal and
external business environment. It is vital that Coca cola carefully monitor both
the internal and external aspects regarding its business as both the internal
and external environment and their respective influences will be decisive
traits in relation to Cokes success and survival in the soft drink industry.
Internal Business Environment: The internal business environment and its
influence is that which is to some extent within the businesss control. The
main attributes in the internal environment include efficiency in the
production process, through management skills and effective communication
channels. To effectively control and monitor the internal business
environment, Coke must conduct continual appraisals of the businesss
operations and readily act upon any factors, which cause inefficiencies in any
phase of the production and consumer process.
External Business Environment: The External business environment and
its influences are usually powerful forces that can affect a whole industry and,
in fact, a whole economy. Changes in the external environment will create
opportunities or threats in the market place Coca cola must be aware off.
Fluctuations in the economy, changing customer attitudes and values, and
demographic patterns heavily influence the success of Coca Colas products
on the market and the reception they receive from the consumers.

SWOT Analysis
SWOT consists of examining the current activities of the organisation- its
Strengths and Weakness- and then using this and external research data to set
out the Opportunities and Threats that exist.
Strengths:
Coca-Cola has been a complex part of world culture for a very long time. The
product's image is loaded with over-romanticizing, and this is an image many
people have taken deeply to heart. The Coca-Cola image is displayed on T-shirts,
hats, and collectible memorabilia. This extremely recognizable branding is one of
Coca-Cola's greatest strengths. Additionally, Coca-Cola's bottling system is one
of their greatest strengths. It allows them to conduct business on a global scale
while at the same time maintain a local approach.
Weaknesses:
Weaknesses for any business need to be both minimised and monitored in order
to effectively achieve productivity and efficiency in their businesss activities,
Coke is no exception. Although domestic business as well as many international
markets are thriving. Coca-Cola on the other side has effects on the teeth which
is an issue for health care. It also has got sugar by which continuous drinking of
Coca-Cola may cause health problems. Being addicted to Coca-Cola also is a
health problem, because drinking of Coca-Cola daily has an effect on your body
after few years.

Opportunities:
Brand recognition is the significant factor affecting Coke's competitive position.
The primary concern over the past few years has been to get this name brand to
be even better known. Coca-Cola's bottling system also allows the company to
take advantage of infinite growth opportunities around the world. This strategy
gives Coke the opportunity to service a large geographic, diverse area.
Threats:
Currently, the threat of new viable competitors in the carbonated soft drink
industry is not very substantial. Possible substitutes that continuously put
pressure on both Pepsi and Coke include tea, coffee, juices, milk, and hot
chocolate. Even though Coca-Cola and Pepsi control nearly 40% of the entire
beverage market, the changing health-consciousness of the market could have a
serious affect. Furthermore, consumers can easily switch to other beverages with
little cost or consequence.
PRODUCT LIFE CYCLE
When referring to each and every product or service ever placed before the
consumer i.e. in the long term all the existing products and services are dead.
Every product is born, grows, matures and dies. So in the commercial market
place products and services are created, launched and withdrawn in a process
known as Product Life Cycle. To be able to market its product properly, a business
must be aware of the product life cycle of its product. The standard product life
cycle tends to have five phases: Development, Introduction, Growth, Maturity
and Decline. Coca-Cola is currently in the maturity stage, which is evidenced
primarily by the fact that they have a large, loyal group of stable customers.
Furthermore, cost management, product differentiation and marketing have
become more important as growth slows and market share becomes the key
determinant of profitability. In foreign markets the product life cycle is in more of
a growth trend Coke's advantage in this area is mainly due to its establishment
strong branding and it is now able to use this area of stable profitability to
subsidize the domestic Cola Wars. Insert the picture of the product lifecycle.
All objectives should be SMART i.e. Specific, Measurable, Achievable,
Realistic, and Timed.
Specific - Be precise about what you are going to achieve
Measurable - Quantify you objectives
Achievable - Are you attempting too much?
Realistic - Do you have the resource to make the objective happen (men, money,
machines, materials, minutes)?
Timed - State when you will achieve the objective (within a month? By February
2016?)

1. Market Share Objectives: To gain 60% of the market for soft drink industry by
September 2016.
2. Profitability Objectives: To achieve a 20% return on capital employed by
August 2016
3. Promotional Objectives: To increase awareness of the product on the market.
4. Objectives for Survival: To survive the current market war between
competitors.
5. Objectives for Growth: To increase the size of the worldwide Coca Cola
enterprise by 10%.

DEVELOPING THE MARKETING MIX

The marketing mix is probably the most crucial stage of the marketing planning
process. This is where the marketing tactics for each product are determined.
The marketing mix refers to the combination of the four factors (price,
promotion, product and place) that make up the core of a businesss marketing
strategy.
Price
Price is a very important part of the marketing mix as it can effect both the
supply and demand for Coca Cola. Price will often be the difference that will push
a customer to buy our product over another, as long as most things are fairly
similar. For this reason pricing policies need to be designed with consumers and
external influences in mind, in order to effectively achieve a stable balance
between sales and covering the production costs.
Price strategies are important to Coca Cola because the price determines the
amount of sales and profit per unit sold. Businesses have to set a price that is
attractive to their customers and provides the business with a good level of
profit. Long before a sale was ever made Coca Cola had developed a forecast of
consumer demand at different prices which inevitably determined whether or not
the product came on the market, as well as the allocation of adequate money
and resources to produce, promote and distribute the product
Promotion
Promotion is the p of the marketing mix designed to inform the marketplace
about who you are, how good your product is and where they can buy it.
Promotion is also used to persuade the customers to try a new product, or buy
more of an old product. The promotional mix is the combination of personal
selling, advertising, sales promotion and public relations that it uses in its
marketing plan. Above the line promotions refers to mainstream media:
Advertising through common media such as television, radio, transport, and
billboards and in newspapers and magazines. Because most of the target is most
likely to be exposed to media such as television, radio and magazines, Coca Cola

has used this as the main form of promotion for extensive range of products.
Although advertising is usually very expensive, it is the most effective way of
reminding and exposing potential customers to Coca Cola Products. Coca Cola
also utilizes below the line promotions such as contests, coupons, and free
samples. These activities are an effective way of getting people to give your
product a go.
Product
Many Products are physical objects that you can own and take home. But the
word product means much more than just physical goods. In marketing, product
also refers to services, such as holidays or a movie, where you enjoy the benefits
without owning the result of the service. Businesses must think about products
on three different levels, which are the core product, the actual product and the
augmented product. The core product is what the consumer is actually buying
and the benefits it gives. Coca Cola customers are buying a wide range of soft
drinks. The actual product is the parts and features, which deliver the core
product. Consumers will buy the coke product because of the high standards and
high quality of the Coca Cola products. The augmented product is the extra
consumer benefits and services provided to customers. Since soft drinks are a
consumable good, the augmented level is very limited. But Coca Cola do offer a
help line and complaint phone service for customers who are not satisfied with
the product or wish to give feedback on the products.
Place
The place P of the marketing mix refers to distribution of the product - the ways
of getting the product to the market. The distribution of products starts with the
producer and ends with the consumer. One key element of the
Place/Distribution aspect is the respective distribution channels that Coca Cola
has elected to transport and sell its product.
Selecting the most appropriate distribution channel is important, as the choice
will determine sales levels and costs. The choice for a distribution channel for
any business depends on numerous factors, these include:
How far away the customers are;
The type of product being transported;
The lead times required; and;
The costs associated with transport;
There are four types of distribution strategies that Coca Cola could have chosen
from, these are: intensive, selective, exclusive and direct distribution. It is
apparent from the popularity of the Coca Colas product on the market that the
business in the past used the method of intensive distribution as the product is
available at every possible outlet. From supermarkets to service stations to your
local corner shop, anywhere you go you will find the Coca Cola products.