Marketing And Management Of Coca Cola Company

Marketing management is the application of tracking and reviewing marketing resources and tactics of an organization towards achieving its success. The study has explored the marketing management of Coca Cola Amatil in Australia. The study has been organized into five issues. In issue 1, the study has described brief summary of the organization and the industry in which it operates. Apart from that, the study has described 5Cs of the organization in terms of customers, competitors, collaborators, company and context. The study has also explored several ways in terms of market research and market intelligence towards gathering information about their 5Cs.

The study has also developed marketing strategy for the organization based on the analysis. It has defined the quality standard of the beverage drinks of Coca Cola Amatil. Apart from that, the study has also developed marketing tactic for the organization through 7Ps. It suggests that the organization should use affordable price for the non-alcoholic beverage products, water and hot beverages.

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Marketing management defines the organizational disciplines inside an organization. It focuses on the marketing orientation, technique and other methods, which are highly required for achieving organizational goals (Hutchinson et al. 2015). The study will discuss the marketing and management of Coca Cola Amatil in Australia. In issue 1, the study will provide a brief description of the organization and its industry. In issue 2, the study will analyze the 5Cs of the organization. Apart from that, the issue 3 of the study will describe the ways in which the organization collects information about their 5Cs. Based on the analysis; the study will develop potential target market, value proposition and positioning statement in issue 4. Furthermore, the study will also develop marketing tactics for the organization in terms of 7Ps of Marketing.

Description of Coca Cola Amatil

Founded on 1904 with headquarter in New South Wales (NSW), Coca Cola Amatil (CCA) has expanded in most of the Asia-Pacific regions including New Zealand, Fiji, Papua New Guinea, Indonesia and Samoa. CCA operates in beverage industry and is a public listed company with products ranging from non-alcoholic drinks to ready-to-eat fruit and vegetable items. A$5.12 billion was its revenue and A$79.9 million was its profit in the year 2014, which made it among the top five listed companies.

The beverage industry of Australia can be analyzed through Porter’s Five Force:

Factors Explanation

Bargaining power of Supplier:

• Low bargaining power due to plenty of suppliers
• Big market players are the key clients for suppliers
• Suppliers are neither differentiated or concentrated

Bargaining power of Buyer:

• High bargaining power from huge availability of soft-drinks
• Bargaining power tends to decreasewith increase of end consumer brand loyalty

Market Competition:

• Tremendous market competition with key players such as Coca Cola Amatil,Pepsico, Schweppes, Kirks, Nudie Foods Australia, Nestle Waters and Dr Pepper Snapple Group Threat from Substitute
• Local firms delivering new flavors of energy drinks such as juice, soda and drinks items
• Price offered by new firms are quite lower then big players

Threat from New Entrants:

• High threat from supermarket local brands such as Woolworths and Coles
• Relatively low barriers for new entries due to zero capital requirement and less consumer switching

CCA mission statement is:

“To create millions of moments of happiness and possibilities for our customers, communities and shareholders”. The statement indicates that CCA tries to ensure satisfaction for its stakeholders, which would in turn help in earning happiness. CCA value statement is:

• We are open and straightforward
• We focus on present and future
• We create initiative and achieve the outcome

Marketing Orientation

According to Vanharanta, Chakrabarti and Wong (2014), marketing orientation comprises of customer orientation, competition orientation and inter-functional coordination.CCA offers soft-drinks with differentiated carbon and sugar content so that both health conscious and casual market segments are addressed. In this way it has able to create sustainable market position. Considering customer orientation, CCA has targeted age segment from 13 to 75, low to high income range, health conscious and even corporate sector consumers. Both suppliers and investors are its prime internal coordination stakeholders. Long-term relationship is kept with beverage suppliers and strong short-term relationship with Digital advertisement partners.

Description of Products

The diversified product portfolio of CCA includes soft drinks, energy drinks, sports drinks, spring water, flavored milk, fruit juices, tea, coffee and ready-to-eat fruit and vegetable snacks. The Small Business Units (SBUs) of CCA are water, alcoholic beverage, non-alcoholic beverage, hot beverage and food. Most of the products are of high sugar and carbon content in beverage category and its water category is gaining rapid market share (Hingley, Angell and Campelo 2015).

Role of Brand in Marketing Strategy

According to Viio and Grönroos (2014), CCA offers wide range of items and most of those are good in quality, however the taste is quite similar to other alcoholic beverage brands. Therefore, CCA needs to classify its brand and increase brand loyalty through enhanced marketing strategy so that customer pool can be retained in future. Therefore, branding will help in customer retention, accelerated sales and earning revenue, which will eventually help in developing other business units.

Coca Cola Amatil has wide range of non-alcoholic beverage drink products, which meets the various kinds of needs of the customers. Ardjouman and Asma (2015) opined that high quality of the beverage drinks has added to the organizational strength of Coca Cola Amatil. High brand reputation of Coca Cola Amatil attracts huge customers groups. Furthermore, wide distribution network and increasing global presence of Coca Cola Amatil has ultimately increased its overall sales volume. On the other hand, Coombes and Nicholson (2013) opined that Coca Cola Amatil has lack of health beverages, which limits its business success. The organization has huge opportunity towards diversifying its product line towards health beverages and food products. However, Coca Cola Amatil faces tough competition in the marker from the companies like Pepsico, Inc, Nestle, Lion Dairy and Drinks.

Coca Cola Amatil serves the customers, who have high refreshing needs. The organization has targeted highly health conscious people. Moreover, it used low sugar level in their drink categories. While considering the typical behavior of the customers, it can be seen that most of the customers demand highly quality beverage drinks from Coca Cola Amatil. The customers mostly purchase the products of Coca Cola Amatil from either retail stores or grocery shops (Eng and Ozdemir 2014). However, the changing needs and preferences of the customers towards health drinks seem to be threats on the organization.

Coca Cola Amatil has unique source of suppliers both from domestic as well as international market. Moreover, the organization always searches for qualified suppliers, who meet the highest quality standard. Therefore, such unique source of suppliers helps the organization in providing high quality beverage drinks in the market. Apart from that, the organization maintains effective relationship with the distributors for reaching the drinks into several retail, grocery, supermarkets, educational institutes, hotels, bars, corporate houses and others (Möller 2013).

The current major competitors of Coca Cola Amatil are Pepsico, Inc, Nestle, Lion Dairy and Drinks. These organizations are also providing almost same quality drinks even in affordable price. However, there is moderate threat of new entrants in the beverage industry. New entrants face tough challenges in beating the competitive force of reputed organizations lik.