The Marketing Audit of coca cola

7/23/2019 The Marketing Audit of coca cola

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The Marketing Audit

and the Marketing Plan

Systematically takes stock of an

organisations marketing health and

plans the direction and scope of

marketing activities


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Definition

the means by which a company canunderstand how it relates to theenvironment in which it operates...

..the means by which a company canidentify its own strengths and weaknessesas they relate to opportunities and threats

The marketing plan serves as a roadmap

that guides the context and scope ofmarketing activities

McDonald 1989


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Marketing audit issues

Internal audit (Portfolio analysis, PLC)

Macro-environment (PEST)

Task environment (Competition, channels,customers)

Markets

Strategic issues (segmentation, positioning,competitive advantage)

Marketing mix (7Ps) Marketing organisational structure and

organisation


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Internal audit :Coca-Cola

strategic objectives1. accelerate carbonated soft drinks growth, led by Coca-Cola

2. broaden the family of products, wherever appropriate e.g. bottled water, tea,

coffee, juices, energy drinks

3. grow system profitability & capability together with the bottlers

4. creatively serve customers (e.g. retailers) to build their businesses

5. invest intelligently in market growth

6. drive efficiency & cost effectiveness by using technology and large scale

production to control costs

7. enabling our people to achieve extraordinary results everyday.


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Internal audit: how to plot

the portfolio matrix


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The BCG Matrix

Assess the general level of growth inthe products market

Measure the market share relative tothe largest competitor in the industry

Decide whether there are enoughstrong products to support weak ones

Is the portfolio balanced betweenexisting strength and emergingopportunity?


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Coca-Cola: product/market summary


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Bottled water: size and segmentation. Look at each

Market in turn and find growth rate


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Bottled water: brand shares

Identify brand leader market shares

The CC brand Malvern has less than 1% market share. Express in terms of

Brand leaders share.


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Portfolio analysis for CCGB

Malvern Water

8.5% market

growth

0.06

RMS


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PLC questions

Where is each product in its lifecycle?

Which products are profitable?

Should new products be added to the

portfolio?

Which products are worth supporting?


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Macro-environment: PEST


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Purpose of PEST analysis

What environmental factors are affectingthe organisation?

Which of these are most important at thepresent time?

Which of these are most important in thefuture?

Forms the Opportunities (area of buyer

need) and Threats (unfavourable trendrequiring defensive action) of the SWOTanalysis


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Political/legal factors(including Global factors)

Monopolies/competition legislation

Environmental protection laws (eg environmentalprotection legislation favours hybrid technologies)

Taxation policy Foreign trade regulations

Employment law

Government stability

Important political events

Critical global markets Newly industrialised countries


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Economic factors

Personal savings rates

Interest rates

Money supply

Inflation

Unemployment

Disposable income

Energy: availability and cost


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Sociocultural factors(including Demographic factors)

Population demographics

Income distribution

Social mobility Lifestyle changes

Attitudes to work and leisure

Shifts in preferences regarding product and

service characteristics Levels of education

Concerns about the environment

Eg increasing concentration

of worlds population incities


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Technological factors

Spending on research

Focus of technological effort

New

discoveries/developments/product

innovations

Rates of obsolescence


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Task environment:

Competitor analysis Identify and analyse competitors very

carefully

Potential competitors/emergingcompetition

Emerging needs

Competitor product range Competitor marketing activities


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Example competitors for CCGB


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Potential Key Success

FactorsMarketing and

market

position

Innovation Production Finance Management

Customer

orientation

Technology Resources Parent

company

Entrepreneurial

quality

Product quality Research and

development

Means of

production

Cashflow Staff turnover

Market

knowledge

Patents People Current

position

Sales

promotion

Service

Market share

Brand loyalty

Brand

awareness


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Scores on Key Success

Factors of CompetitorsCharacteristics Competitor A Competitor B CompetitorC Group of

small

competitors

Customer

satisfaction

4 4 3 2

Strong brand

image

5 4 2 1

Sales

promotion

4 3 3 1

ProductQuality

4 3 3 3

Finance 5 3 3 2

1 = very weak, 5 = very strong


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Defining our position in the

marketFactor CUSTOMER Origin8 Pret Starbucks

High

importance

Low

importa

nce Good Bad Good Bad Good Bad

5 4 3 2 1 5 4 3 2 1 5 4 3 2 1 5 4 3 2 1

Use preservative-free

ingredients * * * *

Quality/Price * * * *

Understands what customers

want * * * *

Customer service * * * *

Evironment concious * * * *

Variety of products * * * *

Customers awarness of the

brand * * * *


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Competitive Benchmarking

Factor Perceived competitive performance

Good performance / Bad performance

5 4 3 2 1

Uses preservative-free ingredients * * *

Quality/Price * * *

Understands what customers want * * *

Customer service * * *

Evironment concious * * *

Variety of products * * *

Customers awareness * * *

Origin8 Delicafe

Pret a Manger

Starbucks Coffee


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Customers, segmentation,

positioning How are markets segmented?

Macro (demographics: age, income,

gender) And micro segmentation variables (lifestyle,

usage, personality)


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Task environment:

Behavioural segmentation


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Usage segmentation


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Demographic segmentation


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Psycho-demographic segmentation


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Psychographic segmentation


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Psychographic segmentation

Lifestyle typologies

-eg slob = I donot consider my

diet to be healthy


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Internal analysis: Marketing

mix Products

Prices

Promotional activities

Distribution

New product development

Customer service


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Product strategy

What products at what prices for what

customer segments?

Market share of each product or line? Stages in PLC of each product?

Which products account for largest

proportion of sales and profits What are strengths and weaknesses of

each product

Summarise


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Product strategy

Opportunities for modifications oradditions in each segment

What are weaknesses and threats toproducts

How do each products features,benefits, branding, packaging

compare with competitive offerings What changes to lines and mixes will

help achieve goals


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Place (channel) strategy

How and where do customers preferto buy?

Describe current distribution strategy Which channels perform the best?

How does each channel contribute tosales, profits etc?

Channel implications of newstrategies?


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Pricing strategy

How does pricing strategy support the objective (egskimming, penetration?)

How do channel decisions affect pricing

How do promotion decisions affect pricing What are the products costs and how do they affect

the price?

How do customers see relationship between price andbenefits?

What are prices and costs of competing products? Are discounts an appropriate tactic?

Is it advisable to raise prices and if so how?


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Promotion strategy

Who is the target audience and what are

appropriate promotion tools and messages?

What do we want to achieve throughpromotion?

How will we use advertising, sales

promotion, PR, direct marketing, personal

selling? Message content, emotional or rational


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SWOT analysis

Strengths and weaknesses focus on

present, past, internal factors

(portfolio analysis, marketing mix):where we are now

Opportunities and threats focus on

present, future, external factors

(competitors, PEST): where we

want/dont want to be


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CCGB

Strengths/Weaknesses STRENGTHS

Existing brand

names Brand

attractiveness to

retail partners

Strong distributionnetwork

Ability to take risks

WEAKNESSES

Heavily dependent

on carbonates Unbalanced

portfolio

Market failures

(Dasani, Burn) Unresponsive to

consumer trends


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CCGB

Opportunities/Threats OPPORTUNITIES

Strong growth

health segments Sports/energy

Growth in

pub/restaurant

premium soft/juicesector

THREATS

Saturation/decline

in carbonates Growth in retailer

brands

Health concerns

Ethical concerns Benzene in diet

drinks


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Marketing objectives

Fill the gap between where we arenow and where we want to be

How will we get there? S pecific

M easureable

A chievable

R elevant

T ime bound


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ENLARGE

THE

MARKET

INCREASE

MARKET

SHARE

IMPROVE

PROFITABILITY

Market development

Develop present

User markets

Discover new

User markets

Product

development

Improve existing

Products to increaseuse

Develop newproducts

Product improvement

Improve quality

Improve

service

Improve

Customer

service

Availability

Credit

Sales volumes

Increase sales and

Marketing effort

Eliminate

Unprofitable

Lines/activities

Increased

efficiencies


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Growth objectives

MARKET

PENETRATION

DIVERSIFICATION

PRODUCT

DEVELOPMENT

MARKETDEVELOPMENT

Current New

PRODUCT

MARKET

Current

New

Ansoffs Growth Matrix


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Sample marketing objectives

UNIT SALES: sell 1000 units in eachtargeted segment during every month in2007

MARKET SHARE: Capture 3% of the UKfreshly squeezed orange juice market byJune 2007

PRODUCT DEVELOPMENT: Develop andintroduce two new products targeting xyz

segments by June 2007 ORDER FULFILMENT: Cut the order cycle

time to I day by June 2007


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Marketing strategy

Marketing strategies are the means bywhich the objective will be achieved

Generally concerned with marketing mix

elements Product: delete, add, modify,

designs,packaging

Price: policy for products/segments

Place: distribution channels, customerservice

Promotion: advertising, sales force, salespromotion, PR, exhibitions, direct mail


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The first year implementation plan

Specify actions to put strategy intooperation

Describe actions in respect of each

marketing mix element individually


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Product strategy

Describe in detail your new product/service idea

Who is the target customer and how will it meet theirneeds?

What customer benefit are you selling? Eg productfeatures/packaging, taste, convenience, quality

Mean Bean Chilli: vegetarian with nine distinctive branvarieties, and fire roasted green chillies with a robustblend of spices. Available in an easy to openmicrowaveable sachet in individual 250g servings


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Price strategy

Make the price point clear (you haveresearched prices earlier in the marketingaudit)

Identify the price position relative tocompetitors eg higher quality higher price

Howlin Coyote Mean Bean Vegetarian Chilliis 2.99 for a 250g serving. The significant

taste advantage and the convenienceadvantage justify the premium price positionrelative to competitor x, y, z


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Distribution strategy

Howlin Coyote Mean Bean Vegetarian

Chilli will be distributed through

existing channels/new channels Method of distribution eg direct,

wholesalers, retailers

Types of retailer, examples


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Promotion strategy

How will you use advertising, personal selling, directmarketing, internet promotion, sales promotion, PR,sponsorship?

What are the key promotional activities

Think about your communication message, yourchoice of communications media and promotionalcosts

How will you encourage consumers to trial a newproduct?

Instore demonstrations of Howlin Coyote Mean Bean

Chilli will be conducted to give consumers a chance tolearn about the products unique qualities. To generatetrial and repeat purchase money off coupons will bedistributed in-pack, via direct mail, in-store


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Which type of promotional

activity?Advertising to create

awareness

Sales promotion and

personal selling areinteractive and

encourage trial

Advertising to encourage

repeat purchase and

loyalty


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Other strategies

People, Physical Evidence and

Process must be considered if you are

proposing a new service or if there arekey process elements in your

distribution strategy (such as Dell)


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Week 2: key terms

Marketing audit

Marketing plan


PEST analysis SWOT analysis

BCG matrix

Macro segmentation variable

Micro segmentation variable

Market penetration

Market development

Product development

Diversification

The Marketing Audit of coca cola

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