Introduction Of Marketing Management Analysis
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Marketing is identified as a management and study of exchange relationships systematically. Every organisation uses this concept to create, satisfy and keep the customers regularly. Marketing is also defined as an activity and process of communicating, creating, exchanging, delivering, offering and providing products and services that have value for clients, buyers, society and clients. Management is the process of maintaining and designing an environment in which persons, working together in teams, accomplish the company's desired goals and objectives in an efficient manner (Chan and et al., 2012). So, both marketing and management are important concepts and processes of developing effective strategies and designing for services or products, promotions, sales, advertising to influence desired customer segment.
This report is based on The General Soft Drinks Co. Ltd, responsible and liable for producing a big range of beverages across Malta. They deal in different products such as Diet Cock & Sprite, Fanta icy Lemon, etc. The main aim and motive of this business are to fulfil the basic requirement of clients by providing quality products and services. This project describes the complete information of the companyâ€™s background, including internal and external analysis, marketing audit, new marketing mix, unique selling proposition (USP) and marketing positioning.
BACKGROUND STATEMENT OF COMPANY INCLUDING USP AND MARKET
General Soft Drinks Co Ltd is liable for manufacturing and producing a different range of beverages across Malta and worldwide (Chernev, 2014). They produce a wide range of soft drinks such as diet coke, Coca-Cola, Fanta, Schweppes, Dr Pepper, Sprite and Kristal. They employ over 240 persons in Gozo and Malta at its manufacturing site, distributions and offices centres. The main motive of this business is decreasing the environmental effect of business operations and products with a specific focus on climate protection, water stewardship, energy and recycling. Coca-Cola operates in Malta which is beneficial to local businessman George Spiteri. The first plant of Coca-Cola was established on 18 May 1952 in Qormi. The mission of this business is to become a supplier in every segment where they operate and manufacture their products or services (Foxall, 2014). This will be attained by satisfying the retailers and consumers with the greatest quality goods through dynamic, responsive, dedicated and trained workers who are also attached to maintain the interest of all stakeholders. In addition, the vision of this organisation is to promote and encourage the development and growth of employees at different levels of the enterprise.
Unique selling positioning: It is identified as a marketing concept and strength of the company in the marketplace. It is also determined as a factor that distinguishes goods from its challengers such as the highest quality, lowest cost or first-ever beverage of its kind USP of The General Soft Drinks Co Ltd in the number one brand in forms of sales with moreover 500 beverages at the offer. It is a famous and largest soft drink company worldwide (GrÃ¶nroos, 2011). This organisation aims to provide quality and healthy products to the target and potential customers at a reasonable cost. They mainly target those who belong in the middle, upper and lower class age group. The basic proposition of the company is very simple, timeless and solid. When they bring value, refreshment, fun and joy to its neutral, they succeed in nature and protect their brand in a particular way; it is essential to complete ultimate responsibility to systematically give attractive and fair returns to the business owner.
Market positioning: Coca-Cola is a famous and popular brand worldwide with its quality products and services. The market positioning of this business is good in comparison to other organisations. They produce many products such as diet coke, Coca-Cola, Fanta, Schweppes, Dr Pepper, Sprite, Kristal, etc. It is a leading retailer and manufacturer of non-alcoholic goods worldwide (Hanna and Rowley, 2011). Company position in the market is best famous for its flagship beverage. It is a useful product for visitors, adults, kids, and travellers interested in visiting Malta. The company has strategically located itself with the organisation and soft drink market worldwide. Market Segmentation of company is identified as a procedure of portioning market in different parts of potential clients with same requirement and features who are probably to display similar buy behaviour. Such activity's main aim and motive are to understand and evaluate the market, classify opportunities, and develop or use a competitive edge to benefit from those changes (Kim and Hyun, 2011). Business organisation segments the clients based on certain criteria, which are described as below:
(Source: Richard Bloch, 2018)
This chart shows the business progress in the marketplace compared to other companies in the smiler industry. Coca-cola is a famous and popular brand worldwide, and it is a trustworthy organisation. So all investors are interested in investing their large amount of money in this industry because they know about future benefits. The growth and success of the company are increasing repetitively because of its quality and healthy beverages (Leonidou and Leonidou, 2011). The main motive and aim of this enterprise are to expand their business operation and functions worldwide and quickly gain more benefits. The Coca-cola market is classified into different ways, which are determined as follows:
Geographic Segmentation: This company has been divided worldwide as per the term of geographical. Different divisions are generated for main regions worldwide, and heads of all departments report to the nurture firm.
Place of consumption: Coca-Cola is a famous brand that segments all marketplace based on consumption place of the beverage. A large number of the consumption take an effective place on the assumption such as railway station, cinemas, restaurant etc., while the residue of it put a place in homes.
Product type : Company is also divided based on its quality products and services. Coca-Cola is a popular brand worldwide by providing quality and healthy beverages (Lindgreen et al., 2012). The market is mainly classified into two parts where. One is the Cola product which gives the majority of the sales or revenues, but the dimension of Non-cola beverage increases regularly.
Demographics: In this Business is classified based on its demographics. It is mainly divided as per the income and age of the person. Â
Targeting : A business entity targets different parts with various ads. Coca-Cola primary market is the youth who belongs in the age group between 10 to 25, and second place of this business for a younger person in the age bracket from 25 to 40. The company's Beverages are mainly targeted towards an individual who wants and needs. At the same time, diet cola, strong flavour and its variants marked the different parts that are beneficial and healthy conscious.
Positioning: Position of the company products as thirst-quenching and refreshing. The beverage is said to take joy and fun as the tagline of little drops of sorrow. The goods are launched with having an accurate period with family and friends and enjoying everyday life.
Marketing Audit, including the entire market attractiveness and whether there are the potentials for market progress and growth.
Marketing Audit: It is identified as a systematic, comprehensive, periodic and independent examination of a business or a company's units of marketing. It is planned to analyse marketing activities and assets in the way of a market situation as well use the following evaluation to assist the organisation in the planning process (Ling-Yee, 2011). Marketing audit should include both internal and external analysis of the company systematically and effectively. With the help of both evaluations, an enterprise can identify their strength, weakness, opportunities and threats. Along with this, it captures external and internal circumstances faced by the business entity and plans an effective process, marketing strategies, systems, and goals. Therefore, audit of marketing is an essential and valuable technique for acquiring touch with product and brand. For example, Coca-Cola uses this tool to achieve the company's long-term and desired objectives in a limited period.
While organising a marketing audit, the company have to adopt these phrases, which are described as below:
Overview of The General Soft Drinks Co Ltd: Coca-cola is one of the leading and retail manufacturing companies worldwide. This business is best known for its quality and flagship products. It is a manufacture, marketer and beverage retailer of non-alcoholic products. They offer approximately 500 brands in all over 200 territories and the country and serve 1.6 billion serving every day (Lusch and Webster, 2011). Around 92,800 employees are working in the company to attract a large number of customers towards business products and services. Coca-cola aims to gain maximum sales and revenues by providing healthy or quality beverages to the target & potential customers.
Marketing objectives and goals: It is identified as a goal set by the marketing department that supports the company to achieve desired and long term objectives in a limited period. The vision of Coca-cola is to achieve maximum profit and revenue by providing quality products to the customers. The mission of the business organisation is totally clear is to complete the basic needs and requirements of clients regularly. The company's market segment is divided into different parts such as products, geography, demographics, etc. So the business needs to attract a million customers towards beverages and services. Business entities easily fulfil their marketing goals and objectives by giving quality products to customers.
Target market segmentation: Coca-Cola is a distributor, marketer and leading manufacture of beverages. They follow a multisegment targeting strategy or scheme, meaning the business has more than a well-defined market segment and single. It creates a marketing mix for all of the parts. As per the geographic segmentation, the market is classified into various ethnic & age groups, lifestyles, sexes etc. All these are basic examples that are beneficial for the organisation to understand their clients' specific requirements and fulfil them (Marshall and LaMotte, 2011). Based on demographic segmentation, this market is classified into a group of people who belong between 15 to 25 and 40 years.
Competitors analysis: Coca-Cola is a famous and most respected brand worldwide and has a wide range of competition with the utilisation of a strong distribution scheme. There are different competitors such as Pepsi, Red Bull, Diet Coke, Fanta, Sprite, Gatorade, Dr Pepper, Mountain dew, Lipton, Tropicana etc. All are top 10 challengers of the business that provide the same products and services to the customers at affordable cost. Â
Â There are different tools of marketing audit or situational analysis are as follows:
SWOT Analysis: It is one of the best and essential tools for the business enterprise to identify their strengths, weaknesses, threats and opportunities in the comparative marketplace (Merrilees, Rundle-Thiele and Lye, 2011). With the help of this tool, they are capable of surviving in the market and achieving long-term and desired goals and objectives. It is also very important in improving the performance of employees and gaining maximum revenues. SWOT Framework evaluates both external and internal factors that identify the organisation's ability and market environment. For example, SWOT analysis of Coca-Cola is described as below:
Strengths : Coca-cola is a famous and well-known enterprise all over the world. There is some strength of the business, which are identified as below:
Brand: The business entity has a well defined and strong brand worldwide. It has been acknowledged as the world's retailing and leading brand by different studies organised by business week, Interbrand and other specialists. Apart from this, the business owns other main or top beverages brand like Diet Coke, Sprite, Fanta etc. Coca-cola has spent more funds to make a strong trade name that has large clients recall.
Economies of scale: Coca-cola is the biggest marketer and retailer of non-alcoholic soft drinks globally. They sell their beverages in more than two hundred countries. Therefore, the business enterprise can invest in an innovative marketplace and gather advantages when the company grows and success in a profitable manner (Michaelidou, Siamagka and Christodoulides, 2011).
The Coca-cola system: The entire chain of the firm and its bottling scheme is known as a main strength for the organisation. It follows the firm to target different markets at the global level and proceed the bottlers; it assists in acquiring knowledge and skill regarding the general marketplace. It also follows the business to rapidly enlarge the new field without a great upfront investment.
Weakness: It is identified as a weak point of the enterprise to successfully survive in a competitive marketplace. There is some weakness of coca-cola, which are described as below:
Criticisms regarding environmental and health problems: Products of the business entity are seen to be great in harmful and calories for health. A different business organisation has healthier drinks and other beverages over carbonates. In 2006, the organisation consisted of controversy in the nation when legal authority and its agencies declared that coca-cola included chemicals and is dangerous for individual health (Miquel-Romero, Caplliure-Giner and Adame-SÃ¡nchez, 2014). One of the main weaknesses of the business, such as negative promotion that can reason as a lot of harm to the business entity, particularly in international and growing markets.
Dropping sales in a few countries: In current years, the business has negative growth indifferent marketplace. The firm's performance or execution has been very poor in North America; it is the biggest market in the few last years. Business performance is also poor in Latin America, Japan, South-East Asia etc. This could keep the company from the state effective in marketing and prevent the organisation from bigger growth and success overall.
Opportunities: Coca-Cola has some changes to expand its business operations and functions at a different level. There are some opportunities of the business organisation which are as follows:
Inorganic acquisitions and growth: Business has been learning different local beverage enterprises aggressively over the last decade. Also, the organisation has maximised its stake in main bottling operations. As a result, it has provided the business more handle over the whole value chain and follows it to line up the objectives of such operations or transactions. For example, Coca-cola acquired another business in entire markets worldwide (Navarro and et al., 2011). These acquisitions provide a head launch to the company internationally and follow the business to classify its revenue and sales stream.
Growing healthy and fresh bottled water and drinks: The company provides carbonated drinks in the marketplace to acquire saturated in various Western countries and change towards healthier soft drinks. One of the best opportunities is to provide bottled water globally. So the business has acquired and developed different brands catering to two segments as geographic and demographic. The company can follow its strong and effective trade name in carbonated water to maximise its existence in another beverage category and benefit from this increasing or growing market.
Threats: There are some threats which the business organisation faces are as follows:
Changing trends: It is identified as a big threat that the company faces in its business operations and functions in an effective manner. In Pepsico, carbonated drinks are the main challenges of Coca-Cola. There are different substitute products, including milk, tea, coffee, energy drinks, and juices.
Competition: The company's main competitor is Pepsico, which directly impacts business performance and sales in an effective way. There are different competitors of Coca-Cola such as Pepsi, Red Bull, Diet Coke, Fanta, Sprite etc.
PEST Analysis: It is known as an external factor of the company which affects the business performances and sales positively and negatively (Peter and Donnelly, 2011). This concept includes different aspects, which are described as below:
Political: Company is subjected to very strict rules and regulations since its beverage come under the food category. The military takeover, civil unrest, government changes, and other agitation in a nation can effects operations and sales of the company in that nation. Â
Economic: Decline growth and success of the economy in a nation to have direct and negative effects on business sales. Different macroeconomic factors like labour price, the inflation rate would affect business operation. Countries with more income would have maximum capital to spend on beverages such as soft drinks.
Social: Beverages are reasoned unhealthy, and people are acquiring health consciousness. This is identified as both an opportunity and a threat to the organisation. Along with them, the culture and society of a nation have a big effect on the beverages habits of its country person.
Technological: It is another important factor essential for the business organisation to achieve long term goals and objectives. The company used different innovative technology in their value chain such as bottling operations, syrup manufacturing and storage at leading or retail shops. Innovative processes and machines affect production operations. Â
Porter's Five Forces Model: This analysis provides an innovative idea and plan of the competitive atmospheres that the business operates (Saren and et al., 2012). This aspect includes four parts which are described as below:
Competition: One of the largest and biggest challengers of coca-cola is Pepsico. In the marketplace, there are other competitors in a different category of beverages, but coca-cola and Pepsico are larger compared to others. Furthermore, innovative competition maximises the product portfolio and introduces carbonated drinks of new variants ( MARKETING THEORIES - EXPLAINING PORTERS FIVE FORCES , 2018).
The threat of new entrants: It is low in the beverages sector and following certain factors which are3 responsible as:
- Brand name: The Business needs to make a strong brand which is not easy for an innovative business to emulate that (Storbacka, 2011).
- Distribution channel: Coca-cola has a different distribution channel worldwide, which is not easy to match up.
The threat of substitute products: This product substitute is high for the beverages sector, with products like juices, bottled water, coffee, and tea readily available. The person who takes beverages for its coffee and caffeine is very easy to substitute.
Supplier power: In the case of coca-cola, supplier power is not high. There are some points which are included in this are as below:
- Raw materials such as water and sugar are standard, so suppliers are replaced easily without any issue.
- There are other factors such as power, labour etc., and it is not a big issue for the business organisation.
Buyer power: Coca-cola is a leading business; the customers use bottling units since the business produce syrup. Partners have minimum bargaining power with business organisations (Vargo and Lusch, 2011). The organisation mainly depends on water bottlers to produce their beverages for the end-user. Â
New marketing mixes to attain gaps between the business's present external environment and marketing strategy.
To achieve high competitive benefits and complete the gap between the external environment and real marketing strategies of the organisation ( Designing an effective marketing mix , 2018). Therefore, the company needs to organise a marketing mix effectively. For example, below determined the marketing mix of coca-cola:
Product: The Business has the biggest portfolio in the food or beverage sector that produce approx 3300 products. It is mainly classified into a different category of diet coke. In addition, the business produces various goods like fruit drinks, energy drinks, coffee, tea and other products. They produce their all products and services all around the country. Therefore, it is beneficial for the organisation to achieve long term goals and objectives.
Price: Coca-cola applies different pricing strategies based on market segmentation. They produce their all products in different groups. Companies apply competitors pricing strategies, which is good in attracting many clients towards business products and services. The market of beverages industry is said as an oligopoly market where a large number of buyers and few sellers are available.
Place: It is identified as one of the main and essential parts of the company where they effectively produce all products and services. The company follows the FMCG distribution channel (Wilson and Gilligan, 2012). The effective distribution pattern of coke products has almost scoured the middle and small level players in the marketplace.
Promotion : Another essential feature of the marketing mix is valuable for the organisation to promote their products in the marketplace. Coca-cola applies different communication channels such as promotion, advertisement, public relations, sponsorship, etc. With all these, a business organisation can attract a million customers and essentially improve business performance. The actual promotions through Corporate social responsibility include help and support with NDTV. It has different brand ambassadors like Hrithik Roshan, Shahrukh khan etc.
Process: Coca-cola is a retail and leading organisation all over the world. To manufacture the products and produce them for the end-user business, effectively apply supply chain management. It is one of the biggest and leading company in all over the world which deals in different beverages as well as achieves long term goals and objectives.
Physical Evidence: It is an essential tool for the company to produce healthy and quality products to the customers systematically. It follows the buyers to make an effective decision regarding the business organisation. For business, physical evidence identify as the capability and atmospheres in which the facility is offered (Wilson and Gilligan, 2012). Both tangible products that support performing and communicating the facility and intangible experience of present clients. In this ability, the company relay the buyer's satisfaction by providing quality products and services to customers in a more effective way.
From the above report, it can be ascertained that marketing management is vital for an organisation. It aims to construct marketing practices and tactics so that products and services are delivered to consumers in the desired manner. This marketing segment focuses on the physical and psychological concepts to influence the level and composition of consumer demand. The swot analysis is conducted to realise the major strengths and weaknesses of the business. The company's financial resources and brand name can be termed as the business's strengths, whereas growing concern of people towards healthy eating has become a probable loss for the business. The external environment analysis is conducted by employing tools such as PESTLE and Porter's five forces so that plans for the future can be formulated.
Books and Journal
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Designing an effective marketing mix , 2018. [Online]. Available through: <https://www.mrgoodacre.com/designing-an-effective-marketing-mix.html>.
MARKETING THEORIES - EXPLAINING PORTERS FIVE FORCES , 2018. [Online]. Available through: <https://www.professionalacademy.com/blogs-and-advice/marketing-theories---explaining-porters-five-forces>.