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Marketing Plan for Coca-Cola Co - Term Paper Example

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Executive Summary Coca-Cola, a popular carbonated soft drinks company has presence in over 200 countries and 160 brands to its credit. The company now plans to launch energy drink in the UK market. It enjoys brand equity but its credit rating is affected. Nevertheless, due to obesity concerns being high in UK, the external environment in UK is conducive to launch of its new product targeting the young, health-conscious consumers…
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Marketing Plan for Coca-Cola Co
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Marketing Plan for Coca-Cola Co

To create awareness about a healthy lifestyle should be the focus of its strategy and the sales would automatically follow. Regular monitoring is essential to know where the strategy is moving. 1. Company History Started in 1886, Coke was marketed as a tonic containing extracts of cocaine and caffeine-rich kola nut until 1905 (Bellis 2011). As the popularity of soda fountain declined, the company released the “New Coke” formula in 1985. Today more than one billion drinks of Coke are consumer every day. In 125 years of its existence the company has developed more than 160 low and no calories drinks in its range of products (The Coca-Cola Company 2010). It currently has more than 500 brands and is available in more than 200 countries across the world. Coke now plans to launch an energy drink in the UK market and since the market is already saturated, it has to evaluate the market characteristics, which would help the company to formulate the marketing strategy. 2. Environmental Analysis 2.1 Economic Analysis The UK is one of the most globalized countries and its economy is the sixth-largest economy in the world. The UK has a GDP of 1.353 Euro or 23.300 Euro per inhabitant, which is the European average (Senior Watch n.d.). The UK has the opportunity to invest at the national as well as the individual level. The UK economy is just recovering and hence even short-term tax imposed on soft and energy drinks could jeopardise the fragile economy recovery (BSDA 2011). The food and drink sector represents over 15% of manufacturing turnover and employment (IfM 2010). Its output was not affected even during the recession. The weekly earnings of people employed in this sector are above average and the job tenure is over nine years; the sector has only 6% temporary workers. 2.2 Social Analysis The wealth of an individual elderly person in UK is high (Senior Watch n.d.). The education level of the people is also high in UK. Obesity levels are very high in UK. Almost two in every adult in the UK are overweight. The quality of food and drink, as well as the sedentary lifestyle has been identified as the reasons for overweight in UK (EMIS 2008). UK soft drinks consumption has gone up by 4% since 2009 as per chart shown in Appendix A. People are keen to include daily exercises and workout because of this the health and energy drinks market has high growth potential. 2.3 Political analysis The UK does not have a President and historically most British governments are composed of ministers from a single political party although at times there is a small opposition party (Darlington 2011). Generally the UK enjoys high political stability and hence the regulations for sectors such as food and drinks sector would not change drastically. The three parts of the UK have their own local administration and responsibilities. 2.4 Legal and regulatory analysis Since soft drinks contain high caffeine levels and since their popularity is growing, the BSDA (British Soft Drinks Association) has released a code of practice stating how the drinks should be labeled and marketed so that consumers have all the information. The labels are also expected to carry the statement, “Not suitable for children, pregnant women and persons sensitive to caffeine” ... Read More
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