MARKETING PLAN OF COKE DIET IN BANGLADESH Marketing Management Course Code: 511 Submitted To: Dr. Belayet Hossain Professor Department of Marketing University Of Dhaka Submitted By: Md. Riazul karim khan Section-B; Roll-016 MBA 13th Batch, Department of Marketing University Of Dhaka Submission Date: 19th February, 2012 Department of Marketing University Of Dhaka Group Members………………………. AUDACIOUS Name | Roll | Shahidul Islam | 004 | Riazul Karim Khan | 016 |
Ashim Kumar Dey | 034 | Shafiqul Islam | 058 | Shipon Kumer Das | 108 | The following marketing plan forms the basis for the introduction of an innovative new product by the Coca-Cola Company. The analysis allows us to outline the best strategies to follow for the achievement of the company’s strategic goals. “COKE DIET” will be marketed as a unique functional drink while striving to reinforce the company’s status as the leader in innovation and successful product launches.
It will focus on the niche market of beverage tire that are unable to have beverages with sugar mostly the health conscious consumer will be focused for its marketing planning. Success will be reflected by a sizeable capture of market shares within this market, while strategically carrying the company up to the top spot as the market leader in the functional drinks segment of soft drinks. Table of contents………… Table of contents| COMPONENTS| Page No. |
Executive SummaryTable of ContentsOrganizational HistoryMission StatementCoca-Cola company in BangladeshSituation AnalysisIndustry AnalysisSWOT AnalysisEnvironmental AnalysisMacro EnvironmentMicro EnvironmentalMarket Segmentation, Targeting & PositioningMarket SegmentationTargeting & PositioningUsing 4P’s of MarketingProductPricePlacePromotionConclusion| 1571011131314151617171819| The Coca-Cola Company started out as an insignificant one man business and over the last one hundred and ten years it has grown into one of the largest companies in the world.
The first operator of the company was Dr. John Pemberton and the current operator is Roberto Goizueta. Coca-Cola was invented by Dr. John Pemberton, an Atlanta pharmacist. He concocted the formula in a three legged brass kettle in his backyard on May 8, 1886. He mixed a combination of lime, cinnamon, coca leaves, and the seeds of a Brazilian shrub to make the fabulous beverage. Coca-Cola debuted in Atlanta’s largest pharmacy, Jacob’s Pharmacy, as a five cent . non-carbonated beverage. Later on, the carbonated. water was added to the syrup to make the beverage that we know today as Coca-Cola.
Coca-Cola was originally used as a nerve and brain tonic and a medical elixir. Coca-Cola was named by Frank Robinson, one of Pemberton’s close friends; he also penned the famous Coca-Cola logo in unique script. Dr. John Pemberton sold a portion of the Coca-Cola Company to Asa Candler, after Pemberton’s death the remainder was sold to Candler. Pemberton was forced to sell because he was in a state of poor health and was in debt. He had paid $76. 96 for advertising, but he only made $50. 00 in profits. Candler acquired the whole company for $2,300 (freshkizzz,sep,2004).
Coca-Cola was the world’s largest manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups, with more than 400 widely recognized beverage brands in its portfolio. With the bubbles making the difference, Coca-Cola was registered as a trademark in 1887 and by 1895, was being sold in every state and territory in the United States. In 1899, it franchised its bottling operations in the U. S. , growing quickly to reach 370 franchisees by 1910. Headquartered in Atlanta with divisions and local operations in over 200 countries worldwide.
Coke’s first international bottling plants opened in 1906 in Canada, Cuba, and Panama. By the end of the 1920’s Coca-Cola was bottled in twenty-seven countries throughout the world and available in fifty-one more. Coca-Cola continued working for over 80 years on Woodruff’s goal: to make Coke available wherever and whenever consumers wanted it, “in arm’s reach of desire. ”The Second World War proved to be the stimulus Coca-Cola needed to build effective capabilities around the world and achieve dominant global market share. From the beginning, Coke understood the importance of branding and the creation of a distinct personality. 8 Its catchy, well-liked slogans19 (“It’s the real thing” (1942, 1969), “Things go better with Coke” (1963), “Coke is it” (1982), “Can’t beat the Feeling” (1987), and a 1992 return to “Can’t beat the real thing”) 20 linked that personality to the core values of each generation and established Coke as the authentic, relevant, and trusted refreshment of choice across the decades and around the globe. In 2002, the company has launched new brand product including Diet Lemon Coke, Vanilla Coke and large varieties of fruit taste Fanta including lime, grape, strawberry and passion fruit in Australia.
The company has also acquired many new international water brands such as Danone Waters, Sparklettes, Alhambra and Evian brands in US. They also continued collaboration with the Walt Disney Company to market children’s soft drinks. Coca-Cola Company Limited has invested a huge amount in marketing campaign to support their brands. The aims for these campaigns are to enhance the consumer awareness and consumer preference for a certain brand. As a result, Coca-Cola Co. has maintained a long-term growth in profitable volume and large market share in the worldwide non-alcoholic beverage market.
In 1985, the Coca-Cola Company made what has been known as one of the biggest marketing blunder. The Coca-Cola Company stumbled onto the new formula in efforts to produce diet Coke. They put forth 4 million dollars of research to come up with the new formula. The decision to change their formula and pull the old Coke off the market came about because taste tests showed a distinct preference for the new formula. The new formula was asweeter variation with lesstang,it was also slightly smoother(Demott 54). Now-a-days Coca-Cola Company has 1,39,600 employees worldwide.
They’ve more than 3500+ beverages worldwide based on 500 brand names. And they’ve 125 years of glorious operational history. Around the world this company serves 1. 7 billion customers per day. (www. thecoca-colacompany. com) The Coca-Cola Company is centered around three objectives: * To stay at the forefront as the market leader in innovative product introductions and successful product launches; * To strengthen and satisfy the needs of the more adventurous Generation Y consumers with a new eye-catching and functional product; * To become the market leader in the functional drinks segment with increased market shares.
The Mission Statement of the Coca Cola Company Our mission statement is to maximize shareowner value over time. In order to achieve this mission, we must create value for all the constraints we serve, including our consumers, our customers, our bottlers, and our communities. The Coca Cola Company creates value by executing comprehensive business strategy guided by six key beliefs: 1. Consumer demand drives everything we do. 2. Brand Coca Cola is the core of our business 3. We will serve consumers a broad selection of the nonalcoholic ready-to–drink beverages they want to drink throughout the day. . We will be the best marketers in the world. 5. We will think and act locally. 6. We will lead as a model corporate citizen. The ultimate objectives of our business strategy are to increase volume, expand our share of worldwide nonalcoholic ready to drink beverages sales, maximize our long-term cash flows, and create economic value added by improving economic profit. The Coca Cola system has more than 16 million customers around the world that sells or serves our products directly to consumers. We keenly focus on enhancing value for these customers and helping them grow their beverage businesses.
We strive to understand each customer’s business and needs, whether that customer is a sophisticated retailer in a developed market a kiosk owner in an emerging market. There are nearly 6 million people in the world who are potential consumers of our company’s product. Ultimately, our success in achieving our mission depends on our ability to satisfy more of their beverage consumption demands and our ability to add value for customers. We achieve this when we place the right products in the right markets at the right time. The Coca-Cola Company in Bangladesh
In Bangladesh Coca-Cola Company is controlled by CCFL (Coca-Cola Fareast Ltd), Atlanta USA. Coca-Cola was first introducing at 1963 in Tejgoan Industrial area under East Pakistan organization in Bangladesh. At 1972 Bangladesh government took over the company under ministry of industry. In 1972 government handover it to the “Mukety Jodda Kallan trust” as an abounded property form ministry of industry. At 1972 Coca-Cola Company had a 50 bottle per mint (BPM) plant. Area was the company approximately 1 acre. At 1985 Coca-Cola Company established 470 Chiriakhana Road by implementing new 250 bottles per mint (BPM) plant.
Because of market expunction and increase consumer demand Coca-Cola Company introduce another 500 bottle per mint (BPM) plant with existing production line. At percent its total production poIr is 750 BPM (bottle per mint). Now its total factory area 7. 25 acre approximately. Tabani beverage produces 175 ml, 250 ml, 50 ml and 1000 ml glass bottle. They supply Coca-Cola soft drinks to Dhaka and Rajshahi divisions. There are another franchisee of Coca-Cola Company is Abul Monem company ltd. In 1982 Abul Monem started their operation after they acquired the plant of K. Rahman & Company.
In 1987 the company made an aggressive move to expand their market. They installed new H & K bottling line along with and installed capacity of 450 BPM at Comilla. Furthermore the company established another plant Chittagong. The state of the art bottling plant with an installed capacity 600 BPM is the most modern plant in the country and is equipped with the straight-line-technology from KHS German. Abul Monem produces the PET Bottles, CANS and GLASS Bottles of a newly introduced product. Now-a- Days Abul Monem company is operating the major portion of Coca-Cola Company in Bangladesh.
They are promotion the product of the Coca-Cola Company around the whole country. Tabany beverage and Abul Monem company introduces the new way of advertising in this country for promoting their product. They’ve introduces the shopping cart or van in this country which gives the customer the opportunity to have their soft drinks from anywhere in the country. They also provided refrigerator in different shop in Bangladesh to promote their product. Recently in 2011 Coca-Cola Company establishes its corporate office at Gulshan in Dhaka.
From this year they are monitoring the supply system and the promotion by their own and in collaboration with Pran Group. Product Information In Bangladesh Coca-Cola Company is operating with its soft drinks. The product of this company is: * The Coca-Cola (Classic) * Sprite * Fanta New introduction in product line will be: * COKE DIET INDUSTRY ANALYSIS In Bangladeshi beverage market it is in the top position. It is gaining its renowned world reputation. From last couple of years for lacking of distribution it had to face so bad position. Recently they gave the distribution to another giant company in Bangladesh PRAN Group.
In Bangladeshi industry of beverage they face two another competition. One is PEPSI , which is distributed by Transcom Beverage Bangladesh Ltd. Another is RC Cola, which is distributed by Partex Beverage Group. Recently they are facing another competitor MOJO from Akij Beverage Ltd. This industry is so many complexes with lots of other beverage like juice, energy drinks, water and lemonade. Recently for assessing a giant distributor they are in the facility of using their supply chain, so that it is now in the position of just-in-hand as it was in past. Now in days they are in the situation in market leader again.
SWOT ANALYSIS Strengths| Weaknesses| Brand strengthEffective stride in new marketsResults of operationsStrong existing distribution channels | Reliant upon line extensionsReliant upon particular carbonated drinksEntrance into difficult non-core categoriesSaturation of carbonated soft drink segment| Opportunities| Threats| New product introductionsBrand is attractive to global partnersA profitable niche market| Strong competitionPotential health issuesFree tradeThe number of target people| The brand value is creating a vast opportunity of coca-cola in worldwide.
The unique taste of refreshment and the feeling of coke happiness create a positive emotion in the mind of target customer. The competition from RC Cola was in the leading position in last couple of years. They had a high market share due to the weakness of distribution from coca-cola last years. A marketer challenger MOJO has invented by focusing the market without the coca-cola distribution. Now the PEPSI is in the position of challenger. Coke must take necessary steps to capture new market and update its management and distribution time to time. It need to capture new market segment which can be achieved by some nicer.
Coke Diet can be introducing in Bangladesh as a new product line to gain an extra facility. ENVIRONMENT ANALYSIS Every business has some limitations or facilities which it gains from its environment. In Bangladesh the market is highly competitive. Here the organization like coca-cola has unique features which provide it’s a huge facility. But in this country it is not operating directly rather it is operating with the help of some local distributors. Some times for the lacking of that distributor coke need to face on huge loss. They were in hiding position due to their lacking of distribution in last couple of years. MICRO ENVIRONMENT
The company, suppliers, marketing intermediary, competitors, public, and customers are the elements of micro environment. In Bangladesh coke has another giant competitor PEPSI. Without these it has some other competitor RC Cola, MOJO, BUBBLE UP, Jomjom Cola. These are in the point of direct competition. Some energy drinks and bottle water are also in its competition situation. The market is highly competitive with distribution and pricing. So a slight pricing change or an excellence in distribution creates a lot of changes in the market share. For being too profitable coke need to make its market strategy and strategic planning efficiently.
Marketing intermediaries like PRAN Group is one of the giant is in now duty for solving all kinds of distribution. MACRO ENVIRONMENT Demographic environment, technological, economic, natural, political and social, cultural environment are the elements of macro environment. In Bangladesh for demographic reason here so many health conscious consumerare situated. They need some drinks to get refresh but all are not suitable for them due to using sugar. COKE DIET is the best solution for them. Economic condition of the people of this country is in the position to buy this product like they are purchasing COKE CLASSIC.
So here a huge market lies to be served and company can earn a lot from targeting those segments. MARKET SEGMENTATION, TARGETING AND POSITIONING MARKET SEGMENTATION Segmentation variables and breakdowns for COKE DIET in BANGLADESH| MAIN DIMENSIONS| VARIABLES| BREAKDOWNS| | Region| BANGLADESH, SOUTH ASIA| | Area size| 1,47,570Sq km| | Density| Urban, suburban| | Age| All works of life, mostly 20-50| | Gender| Male and Female| | Occupation| All levels of people, mostly graduation | | Education| Elementary 4th grade, High school, CEGEP and University| | Race| All| Home ownership| Renting apartment/condo, living with parents(Highly discretionary in personal spending)| | Personality| Brand conscious, Health conscious, anchored in popular culture, inclined for differentiation and sophistication, very tolerant towards multiculturalism and internationalism (open-minded), quick maturation with modern products| | Lifestyle| Most of them dependent on own earnings, students also, highly influenced by peer groups, active life, importance of school, work and social life| | Benefits sought| COMMUNICATION BENEFITS-Nutritional information-Informational text on history of productFUNCTIONAL BENEFITS-Healthier than soft drinks-Convenient, easy to take outPERCEPTUAL BENEFITS-Quality/Premium price-Social standing/good-looking| | Usage rate| Seasonal (peak in summer), daily-basis, weekly basis| | User status| Non-user, regular user (current user through existing bar-shops)| MARKET TARGETING AND POSITIONING This is a good niche market were we can invest with this product.
So that it can create a good impression to the customer and also creates a huge profit for company too. We need to identify the people first from the segment which one segment we want to serve. Then we need to focus on company mission statement. By focusing on the vision and the motive to capturing the market share we need to come up with the solution made by the promotional strategies. Personal presentation will be the best promotional activities here to solve the problem of informing the customer about the product. USING 4P’S OF MARKETING PRODUCT The product is coca-cola diet is focused in this marketing planning. The coca-cola company has more than 400 products in world wide.
They are just in the market leader in the global village. Coke is going to introduce in Bangladesh to create a market share from the deprive people of Bangladesh. They are running here with product * The Coca-Cola (Classic) * Sprite * Fanta New introduction is……. DIET COKE PRICE The pricing is the most important challenging in terms of marketing a new product. Competition also creates a huge change in the pricing decision. The leader also need to make the pricing based on the market demand and competitor’s competitive strength. To make a product more and more profitable each and every company needs to come up with the solution with pricing effectively.
Without an effective pricing they can’t be profitable. For Diet Coke the price must be in a position that everyone can purchase it. Mainly for the beverage the price penetrationstrategy is taken everywhere. PLACE The whole country will be the market. There would be no demographic bindings so that each and every people needs this can buy and have a good refreshment. It will also make the best use of the production, distribution and market share capturing. PROMOTION Coca-cola takes a lot of advertising activities all over the world in every year. They’ve lots of billboards. They also use television media for their advertisement. In Bangladesh they mainly advertise in newspaper and television.
For promoting their product they also use on shop advertisement. They provide the refrigerator to the shop and also make ensure the space in shelves for decorating their product . Based on the aforementioned analysis, COKE DIET appears to be a profitable and innovative product with a strong outlook for market share presence and segment growth opportunity. Upon implementation of the marketing plan, the Coca-Cola Company will regain increased market shares and claim its targeted situational position of market leader in the functional drinks segment as well as keeping its long-standing consumer recognition for innovative and successful product launches in diversified markets.