Assignment marketing mix and it's critical analysis

Coca Cola Marketing Mix Critical and Ethical Analysis

Table of Contents;

1- Introduction2-

INTRODUCTION

Marketing no doubt comes to our ways in many shapes, starting from traditionally organized markets for several local brands to brands like our chosen “Coke” of Coca-Cola.

With geographically diverse background and lot more than just a customer centric approach to capturing long-term customer values with wide range of campaigns and marking concepts involved, this Company’s product mix is focusing a lot and standing with high customer equity with ultimate goal of making selling unnecessary in competitive environment.

In this summarized report, first section we will be critically exploring 4 P’s of Coco-Cola and Company’s other product range in comparison with its market challenger PEPSI Co. – Coca-Cola is running Operations in Pakistan as CCBPL with wide range of Products of Fizzy Drinks, mineral Water etc.

Middle section of this report will give us insight about ethical analysis of Coke’s Marketing Mix in absence of well regulated/followed Corporate Social Responsibilities (CSR) and way it has created values proposition in marketplace, which we will consider mainly from following perspectives;

- Exploited Local cultural conventions, Needs and deficiencies - Health Perspective- Environmental Perspective.

Last section will have synopsis of few interviews conducted by different presenters of this report and then reference of any such material which is taken from publically available used in completing our study afore mentioned.

Marketing Mix of Coca Cola

Product

We will analyze Coca Cola’s all Product components of Marketing mix, which Coca Cola helping to make better segmentation, targeting and position amount its competitors.

Branding

Design

Functionality

Quality/Warranty of better product

Quantity

Packaging

Availability

Service

Taste/Technology

Branding

Coca Cola has different brands in its product mix. We will analyze it’s marketing share is mainly capture the way it launches different brands

Price

We will analyze Coca Cola’s all Product components of Marketing mix, which Coca Cola helping to make better segmentation, targeting and position amount its competitors.

Strategy, List Price, Discounts, Allowances, Payment Period, Credit Terms, Payment Method

Place

We will analyze Coca Cola’s all Product components of Marketing mix, which Coca Cola helping to make better segmentation, targeting and position amount its competitors.

Trade Channels, Coverage, Assortment, Location, Inventory, Transportation, E-Commerce, Logistics

Promotion

We will analyze Coca Cola’s all Product components of Marketing mix, which Coca Cola helping to make better segmentation, targeting and position amount its competitors.

Advertising, Direct Marketing, Corporate Identity

Personal Selling, Sales Promotion, Public Relations

Ethical issues with Coke and it’s remedial suggestion being market manager

In any businesses, their product mix are being critically seen or evaluated. In

modern era of contemporary marketing management consumers’ interest is directly

relevant to what product is delivering to them or society as well. Because today’s

marketing is not left only with marketing concept of value proposition especially for

branded companies competition is intense.

It eventually showing what on ethical grounds interests companies are obtaining as

result from capturing customer values.

Here are few ethical issues listed and examined these with remedial actions being

marketing manager, we should be taking to save interest and better survive.

1. Exploited Local cultural conventions, Needs and deficiencies

2. Health Perspective

Coke is the most valuable brand in history, and “Coca-Cola” is the world’s renowned

company and also large market share in Pakistan as well. However, the beverage itself is

an absolute poison to the human metabolism “It’s not something specifically restricted to

Coke but here we will explore problem with Coke only”. Coke is very acidic; it’s only one

point higher on the pH scale than battery acid. Consequently it can clean surfaces

equivalent to and often better than many toxic household cleaners.

It’s cheaper and easier to buy Coke in some third world countries than it is to access

clean water like United Arab Emirates, if cheaper than of Water but in Pakistani market

it’s not cheaper still admired a lot.

Coke uses “public relations propaganda” to convince consumers and entire nations that it

is a “healthier product producer company” when really it is linked to cause diseases due

to ingredients being criticized by marketing associations, health agencies and consumer

itself – consumers here are those who have enough knowledge and love to explore

product before using it.

According to western study published in journal Respirology reveals People who consume

soft drinks such as Coke have a 48% increase in heart attack and stroke risk, compared

to people who did not drink the sodas at all or did not drink them every day.

The carbonation in Coke causes calcium loss in the bones through a 3-stage

process:

1. The carbonation irritates the stomach.

2. The stomach “cures” the irritation the only way it knows how. It adds the only antacid

at its disposal: calcium. It gets this from the blood.

3. The blood, now low on calcium, replenishes its supply from the bones. If it did not do

this, muscular and brain function would be severely impaired.

But, the story doesn’t end there. Another problem with most Coke is it also contain

phosphoric acid (not the same as the carbonation, which is carbon dioxide mixed with the

water). Phosphoric acid also causes a draw-down on the body’s store of calcium.

So Coke softens your bones (actually, makes them weak and brittle) in 3 ways:

1. Carbonation reduces the calcium in the bones.

2. Phosphoric acid reduces the calcium in the bones.

3. The beverage replaces a calcium-containing alternative, such as milk or water. Milk and

water are not excellent calcium sources, but they are sources.

Esophageal cancer was very rare two generations ago — now, it’s common. The

basic mechanism works as follows:

1. Mechanical damage to cells is a huge risk factor for cancer. It’s why asbestos particles,

for example, cause lung cancer.

2. All soft drinks cause ACID REFLUX (stomach acid rising up past the esophageal valve).

This is more pronounced when the body is horizontal (as in sleeping), but the sheer

volume of Coke and soft drinks consumed in the USA means the acid reflux is well past

the danger point. Any time you ingest a gassy drink, you are going to get belching–and

acid into the esophagus. How much is too much? The research doesn’t say where the

limit is–it only shows that most of us are far, far, far past it.

3. Stomach acid dissolves tissue — that’s its purpose. The stomach lining does not extend

into the esophagus, so the lower esophagus gets damaged by acid far more frequently

in soft drink users than in non soft drink users. This results in a radical increase in cell

mutations, along with a far higher level of free radicals.

Most widely criticism found on social median and mobile texting

Coke acts as an acidic cleaner. The amount of acid in soda is enough to wear away at the

enamel of your teeth, making them more susceptible to decay. In tests done on the

acidity levels of soda, certain ones were found to have PH levels as low as 2.5. To put that

into perspective, consider that battery acid has a pH of 1 and pure water has a pH of 7.

To prove Coke does not belong in the human body, here are 20 practical ways you can

use Coke as a domestic cleaner:

1. Removes grease stains from clothing and fabric

2. Removes rust; methods include using fabric dipped in Coke, a sponge or even

aluminum foil. Also loosens rusty bolts

3. Removes blood stains from clothing and fabric.

4. Cleans oil stains from a garage floor; let the stain soak, hose off.

5. Kills slugs and snails; the acids kills them.

6. Cleans burnt pans; let the pan soak in the Coke, then rinse.

7. Descales a kettle (same method as with burnt pans)

8. Cleans car battery terminals by pouring a small amount of Coke over each one.

9. Cleans your engine; Coke distributors have been using this technique for decades.

10.Makes pennies shine; soaking old pennies in Coke will remove the tarnish.

11.Cleans tile grout; pour onto kitchen floor, leave for a few minutes, wipe up.

12.Dissolves a tooth; Use a sealed container…takes a while but it does work.

13.Removes gum from hair; dip into a small bowl of Coke, leave a few minutes. Gum will

wipe off.

14.Removes stains from vitreous china.

15.Got a dirty pool? Adding two 2-liter bottles of Coke clears up rust.

16.You can remove (or fade) dye from hair by pouring diet Coke over it.

17.Remove marker stains from carpet. Applying Coke, scrubbing and then clean with

soapy water will remove marker stains.

18.Cleans a toilet; pour around bowl, leave for a while, flush clean.

19.Coke and aluminum foil will bring Chrome to a high shine.

20.Strips paint off metal furniture. Soak a towel in Coke and lay it on the paint surface.

Now can you imagine what is does to your stomach lining?  

Who needs the ‘household and cleaning’ section at the hardware store when we have

Coke?

Have you ever wondered what exactly Coca Cola is?

After 10 minutes 1 glass of Cola = 10 sugar spoons

Cause devastating “strike” on the organism and the only cause, by reason of not vomiting, is the phosphoric acid which inhibits the action of sugar.

After 20 minutes A leap of insulin levels in bloodstream occurs. The liver converts all the sugar into fat.

After 40 minutes Ingestion of caffeine is finally completed. The eye pupils are expanding. Blood pressure rises, because the liver disposes more sugar into bloodstream. The adenosine receptors get blocked, thereby preventing drowsiness.

After 45 minutes Body raises production of dopamine hormone, which stimulates the brain pleasure center. Heroin has the same principle of operation.

The active ingredient of Coca-Cola is orthophosphoric acid. Due to its high acidity, cisterns used for transporting of the concentrate have to be equipped with special reservoirs designed for highly corrosive materials.

Let’s have a look at “the anatomy” of one of the most advertised products of “Coca-Cola Co.” – Coca-Cola Light without caffeine. This drink contains Aqua Carbonated, E150D, E952, E951, E338, E330, Aromas, E211.

Aqua Carbonated – this is sparkling water. It stirs gastric secretion, increases the acidity of the gastric juice and provokes flatulency – plenty evolution of gases. Furthermore, spring water is not used, but is used regular filtered water.

E150D – food coloring, obtained through the processing of sugar at specified temperatures, with or without addition of chemical reagents. In the case with coca-cola, ammonium sulfate is added.

E952 – Sodium Cyclamate is a sugar substitute. Cyclamate is a synthetic chemical, has sweet taste, which is 200 times sweeter than sugar, and is used as an artificial sweetener. In 1969 it was banned by FDA, since it as well as saccharin and aspartame, caused cancer in rats’ urinary bladder. In 1975, prohibition seized also Japan, South Korea and Singapore. In 1979, WHO (World Health Organization), “who knows why?” rehabilitated cyclamates and recognizing them as safe.

E950 – Acesulfame Potassium. 200 times sweeter than sugar, containing methyl ether, where it aggravates the operation of the cardiovascular system. Likewise, it contains asparaginic acid which can also cause excitant effect on our nervous system and in time it can lead to addiction. Acesulfame is badly dissolved and is not recommended for use by children and pregnant women.

E951 – Aspartame. A sugar substitute for diabetics and is chemically unstable: at elevated temperature it breaks down into methanol and phenylalanine. Methanol is very dangerous: 5-10ml can cause destruction of the optic nerve and irreversible blindness. In warm soft drinks, aspartame transforms into formaldehyde which is very strong carcinogen. Some number of cases with aspartame poisoning include: unconsciousness, headaches, fatigue, dizziness, nausea, palpitation, weight gain, irritability, anxiety, memory loss, blurry vision, fainting, joint pains, depression, fertility, hearing loss and etc. Aspartame can also provoke the following diseases: brain tumors, MS (Multiple Sclerosis), epilepsy, Graves’ disease, chronic fatigue, Alzheimer’s, diabetes, mental deficiency and tuberculosis.

E338 – Orthophosphoric Acid. This can cause irritation of skin and eyes. It is used for production of phosphoric acid salts of ammonia, sodium, calcium, aluminum and also in organic synthesis for production of charcoal and film tapes, for production of refractory materials, ceramics, glass, fertilizers, synthetic detergents, medicine, metalworking, and textile and oil industries. Food orthophosphoric acid is used in the production of carbonated water and for preparation of ingredients in pastry. It is known that orthophosphoric acid interfere with the absorption of calcium and iron from the body, which can cause weakening of bones and osteoporosis. Other side effects are thirst and skin rashes.

E330 – Citric Acid. It is widely spread in nature and is used in pharmaceutical and food industries. Salts of citric acid (citrates) are used in food industry as acids, preservatives, stabilizers, and in medical fields – for preserving blood.

Aromas – unknown aromatic additives

E211 – Sodium Benzoate. It is used in production of some food products, as an anti-bacterial and anti-fungal agent. These products refer to jams, fruit juices and fruit yoghurts. It’s not recommended for use by asthmatics and people who are sensitive to

aspirin. A study conducted by Peter Piper at the Sheffield University in Britain, found that this compound causes significant damage to DNA. According to his words, sodium benzoate which is an active component in preservatives doesn’t destroy DNA, but deactivating it. This can lead to cirrhosis and degenerative diseases like Parkinson’s disease.

So, what turns out? Well, it turns out that “the secret recipe” of coca-cola is just one advertising play. What kind of secret may be there, when it’s well known to us that this is a weak solution of cocaine with preservatives, colorants, stabilizers and etc. I.e., this is legalized cocaine addiction plus pure poison. Diet Coke is even worse, because the aspartame in it, replaces sugar, becoming pure neurotoxic poison.

So, if you can’t imagine a life without coca-cola, take advantage of the following recommendations:

– Many distributors of coca-cola in U.S use this drink for cleaning their truck engines.

-Many police officers in U.S have bottles of coca-cola in their cars and when a car accident happens, they wash the blood out of the road with it.

– Coca-Cola is a great tool for removing rusty stains on chrome surfaces of cars. To remove corrosion from car battery, pour it with Coke and the corrosion will disappear.

– To unscrew a rusty screw, dip a cloth in coca-cola and wrap around it for several minutes.

– To clean stains from clothes – pour coca-cola on dirty clothes, add washing powder and run the washing machine as usual. You will be surprised of the results.

– In India, some farmers use coca-cola instead of pesticides for pest extermination, because it’s cheaper and the effect is completely satisfying.

So, coca-cola undeniably is a very useful product. The key is to be used for intended purposes, but not for drinking!

Environmental Perspective

It is hard to argue the fact that waste management has become a large problem in the world, with landfills growing to enormous sizes and recycling rates remaining dismally low. The number of plastic bottles produced by the bottled water industry and subsequently discarded by consumers has only exacerbated this problem.

According to a 2001 report of the World Wide Fund for Nature (WWF), roughly 1.5 million tons of plastic are expended in the bottling of 89 billion liters of water each year. 

Besides the sheer number of plastic bottles produced each year, the energy required to manufacture and transport these bottles to market severely drains limited fossil fuels. Bottled water companies, due to their unregulated use of valuable resources and their production of billions of plastic bottles have presented a significant strain on the environment. 

The authors of the WWF report suggested that water bottles be washed and reused in order to lessen their negative impact on the environment. Unfortunately, reusing plastic bottles further compromises the quality of the water, due to the fact that more and more phthalate leaches its way into the water as the bottle gets older. In another suggestion, the authors recommended that bottled water companies use local bottling facilities in order to lessen fuel expenditures for transportation needs. Regrettably, local bottling further compromises water quality due to the reduced health standards for in-state bottled water production and consumption. It seems there is no feasible solution to this problem. The bottled water industry causes a severe strain on the environment, but solutions to this environmental damage significantly lessen the quality of water in the bottles.

Americans waste (landfill, litter, and incinerate) about 425

beverage containers per capita per year--twice as many as we

recycle.

Environmental impacts of this wasting include: Energy consumption  equivalent to 36 million barrels of

crude oil per year Annual generation of 4.5 million tons of greenhouse gases Emission of a host of toxics to the air and water Damage to wildlife habitat due to mining, drilling, and building

hydroelectric dams Landfilling and littering of more than 135 beverage cans and

bottles each year.

Energy Consumption

When beverage containers are wasted, they

must be replaced with new bottles and cans

made from virgin materials. Production using

virgin (primary) materials is more energy-

intensive than production using recycled

(secondary) feedstock, and it generates more pollutants of all

kinds: airborne emissions, toxic liquid effluents, and solid wastes

from mining and industrial processing, for example.

The environmental effects of this “replacement production” are

particularly pronounced for aluminum cans (See CRI's Trashed

Cans report). Primary aluminum production entails strip mining

bauxite ore, refining it into alumina using fuel oil and other

chemical inputs, transporting it vast distances, and smelting it

into aluminum ingot using large quantities of electricity. New

hydroelectric dams are often built to produce electricity for

aluminum smelters, damaging river ecosystems and displacing

indigenous peoples in many regions of the world.

The manufacturing processes for PET and HDPE plastic bottles

are not as environmentally egregious as aluminum can

production, but they are still energy consumptive and polluting,

relying on natural gas and petroleum derivatives. To read more

about the effects of making plastics, click here.

Taken together, the energy used to replace the 134 billion

beverage containers wasted in 2005 was equivalent to 50 million

barrels of crude oil. This is enough to supply the total residential

energy needs of about 2 million American households for a year.

Click here to see a table of energy impacts by material in 2005.

Greenhouse GasesAn estimated 4.7 million tons of greenhouse gas emissions were

also produced in the process of replacing the 134 billion bottles

and cans not recycled in 2005, as the table shows.

While the aluminum industry has come a long way in reducing

greenhouse gas emissions from the smelting process itself, the

worldwide quantity of aluminum-related greenhouse gases has

continued to rise. This is due in large part to the greenhouse gas

impacts of increased total aluminum demand, and thus increased

electricity generation--from coal, natural gas, and hydroelectric

dams.

Toxic EmissionsToxics are also released into the soil and water when bauxite or

is mined and processed for refining into alumina. For every ton

of aluminum produced, about 5 tons of caustic red mud wastes

are produced, along with a host of other pollutants , including

NOx and SOx (contributors to acid rain and smog), toxic

fluorides and volatile hydrocarbons, and other industrial

effluents.

LitterBeverage containers

typically comprise 40% to

60% of roadside litter in

non-deposit states. In a 1999

statewide study, the Solid

Waste Coordinators of

Kentucky found that beverage containers and closures made up

52% of roadside litter, as the below figure shows. The same

study found that beverage container material made up 42% of

litter in state waterways, and an average of 49% of litter at all

sites. The Virginia Shenandoah Valley Audubon Society, a

participant in the state’s Adopt-a-Highway program, carefully

recorded the litter they picked up several times a year from 1990

to 1998. They found that beverage containers accounted for 69%

of litter collected on their adopted highways over the 9-year

period.

Beverage container litter can be dangerous to people and animals.

People stepping on broken glass beer bottles can sustain deep

cuts. Soon after Massachusetts enacted its deposit law in 1983,

doctors at Children’s Hospital in Boston found a 60% decrease in

glass-related lacerations that required stitches. [1]

Livestock can be maimed or even killed by beverage container

litter, either by stepping on broken cans and glass bottles, or by

ingesting sharp pieces of containers that end up in their feed.

This happens when a farm combine working along a roadside

inadvertently “harvests” littered bottles and cans that have been

tossed out of car windows.

Wildlife are also susceptible to broken glass injuries, and marine

birds in particular are prone to mistake littered plastic bottle

caps as food. Unable to digest or excrete them, the birds

gradually starve to death.

Below is original article

Beverage container waste is a national problem; it increased more than 50% between 1992 and 1999. Senator Jim Jeffords (I-VT) will introduce “The Beverage Producer Responsibility Act” in September 2003 as a means of reversing this trend. The bill requires that brand owners achieve an 80% recycling rate for their beverage containers, and collect a 10¢ deposit on every container.

Under a national bottle bill with an 80% recycling rate, a total of 53 million barrels of crude oil equivalent (bcoe) could be saved annually. This number includes the 28 million bcoe in energy savings already being realized from existing recycling efforts, and 25 million bcoe in additional energy savings due to the national bottle bill. 25 million bcoe is sufficient to meet the total residential energy needs of 1.4 million American households for a year.

Every state bottle bill has been amended since its enactment, and every deposit state has sought to expand or update its deposit law through legislation or voter referendum. Policymakers and activists in deposit states already seek many of the provisions included in Jeffords’ bill, but are stymied by their state legislatures. They are aware of the economic and environmental benefits of deposit legislation, but may have questions about how the National Beverage Producer Responsibility Act will impact their existing deposit law. The following points are intended to address those concerns:

· PROVEN EFFECTIVENESS: All of the provisions in this bill have precedents in existing bottle bill states. For example, the 10¢ deposit is a feature of Michigan’s deposit law, and it produces container recycling rates of 95%, in contrast to the average of 70% in states where the deposit is a nickel. The inclusion of all beverage containers (excluding milk) is modeled after the deposit system in Maine.

· INCREASE IN DEPOSIT VALUE: The value of the dollar has declined significantly since the nickel deposit was instituted over 30 years ago, greatly diminishing the impact of the financial incentive. A 10-cent deposit would increase the financial incentive, which is essential to the success of bottle bills, to a meaningful level.

· EXPANSION TO OTHER BEVERAGES: Sales of “new age” beverages, such as sports drinks, juice drinks, teas, coffee and bottled water, are skyrocketing. They are predominantly packaged in plastic and glass bottles, which are costly for municipalities to collect through curbside programs. Had these beverages existed 20 or 30 years ago, they would have been included in deposit laws. Expanding existing bottle bills to include these beverages, as well as wine and liquor, will reduce litter, solid waste, and recycling costs to state and local governments.

· UNREDEEMED DEPOSITS: Unredeemed deposits are partly or fully retained as state property in California, Hawaii, Massachusetts and Michigan. These states would continue to keep the unredeemed deposits under Jeffords’ bill.

· OUT-OF-STATE REDEMPTION: The prospect of increased interstate fraud, which has deterred states from raising their deposit values, would be eliminated under Jeffords’ bill.

The 82 million people in the ten bottle bill states recycle more bottles and cans than the 200 million people in the forty non-deposit states. A national bill provides bottle bill states with the opportunity to coalesce and collectively implement sought-after measures. 

Reference

1. Health Hazards as critical issues: http://www.trueactivist.com/what-happens-to-our-body-after-drinking-coca-cola/

2. Environmental impact due to plastic made bottle. http://www.everythingconnects.org/plastic-pollution.html

3. Environmental proposal just like of Bottle Producer Act from Western Countries’ http://www.bottlebill.org/legislation/campaigns/resources/usa/2003-ImpactOnBBStates.htm

4.