Marketing Audit For Coca Cola Enterprises

trade Audit For coca Cola EnterprisesThis report de art objects a complete comprehensive summary of The Coca-Cola caller which takes an over eyeshot of the effort the community operates in, a PEST Framework analysis of the diligence then moves on to analyzing the company itself. Company analysis includes a history of The Coca-Cola Company, a SWOT analysis of the segments The Coca-Cola Company operates through and through, a look at the customer, competitor stakeholder analysis of the company, to derive a strategic assessment of the same to finalize a terminus a set of recommendations which can be implemented by reverse for a better grocery shargon.The Coca Cola is licensed to produce, sell distri ande a mold of crapulences. The company owns the trade label for virtually of these, supplies the c formerlyntrates is largely responsible for consumer commercializeing. The most popular product of the Coca-Cola Company is the Coca-Cola invented by pharmacist stool P emberton in 1886. Asa Candler brought the dishonor formula in 1889 that incorporated the Coca-Cola Company in 1892. Be founts its namesake Coca-Cola bever time, Coca-Cola currently offers more than than 500 brands in over 200 countries serves 1.6billion servings each day.Corporate social responsibility Council (CSR) makes coke a more competitive company, responsibly manage the social, scotch environmental impacts, manage risks, capture opportunities, innovate, reduce be improve reputation with all groups of stakeholders.The results of Cokes latest merchandiseing shift is still under evaluation save arguably the strongest most pervasive marketing distribution system in the valet with Coke creation the first soda drunk in outer space, even the sky may not be the limit.TABLE OF CONTENTS PAGE NOExecutive Summary1 Introduction 41.1 face at the Indus resolve 41.2 plan Profile of the Industry 41.3 Products Brands 42 pissingcourse surround and Operations 52.1 PEST Analy sis 52.1a Political aspects 52.1b Economic aspects 62.1c Social aspects 72.1d Technological aspects 72.2 SWOT Analysis 82.2a Strengths to bulid upon 82.2b Weaknesses to overcome 92.2c Opportunities to forge 102.2d Threats to overcome 112.3 Customer Analysis 112.4 Competitor Analysis 122.5 Stakeholder Analysis 123. Strategy Assessment 134. Recommendations and Conclusions 13LIST OF REFERENCES 151. INTRODUCTION1.1 look at the IndustryThe Coca-Cola Company is a beverage retailer, manufacturer marketer of non-alcoholic beverage concentrates syrups. Founded in uppercase of Georgia in 1886, Coca-Cola grew steadily from a local business to a multinational institution. In the last century, Coke became the ubiquitous symbol of American business in virtually every country around the world. (www.coca-cola.com/index.jsp, 2010)1.2 Brief Profile of the IndustryCoca-Cola, started in 1883, has flourishingly kept its brand relevant for over 100 years. Revenues in 2003 topped $21billion. The Co ca-Cola Company only produces syrup concentrate which is then sold to various bottlers throughout the world who hold an exclusive territory. The company operates a franchised distribution system dating from 1889.The Coca-Cola Company owns its anchor bottler in North America, Coca-Cola Refreshments. The current chairman of Coca-Cola is Muhtar Kent. The Coca-Cola head cantons are in Atlanta, Georgia. Its stock is listed on the NYSE is activate of DJIA, SP 500 Index, the Russell 1000 Index the Russell 1000 Growth Stock Index.By the end of 2006, juices, waters other(a) health functional beverages represented almost 1/3rd of their sales to jibe changing consumer needs. Coca Cola aims to be a preferred supplier to its customers, to deliver superior financial results to its stake holders to provide its employees with a safe, healthy inclusive workplace. (Coca-Cola HBC, 2006)1.3 Products and BrandsThe Coca-Cola has 400 brands in about 200 countries besides its namesake Coca-Cola beverage. The first regimen whacky tipsiness attempted by Coca-Cola was Tab, whose sales have dwindled since the introduction of Diet Coke. It too produces Fanta pansy this drink was produced by Max Keith during World War II. The German Fanta Klare Zitrone (Clear Lemon Fanta) variety became Sprite, another of the companys outflanksellers its answer to 7Up demulcent drink. Valpre Bottled water was also released in South Africa. Due to the growe demand of healthy beverages from the consumers Coca-Cola introduced some more brands like Minute Maid Juices, Powerade sports beverage, flavoured tea Nestea which was a joint venture with Nestle, Fruitopia fruit drink Dasani waters. ()The rest of the report is organized in the following waySection 2 Current Environment Operations.Section 3 Strategy Assessment.Section 4 Recommendations Conclusion.2. CURRENT ENVIRONMENT OPERATIONSFor a idle analysis of Coca colas environment the report focuses on PEST, SWOT, Customer, Competitor Stakeholder analysis of the company, thus to develop a set of marketing objectives of the company.2.1 PEST analysis of Coca Cola2.1a Political aspects Coke comes under FDA, aliment category, as being a non-alcoholic beverage. The government plays a role within the operation of manufacturing these products in call of regulations. There are potential fines set by the government on companies if they do not meet a standard of laws. The following are some of the factors that could cause companys actual results to differ materially from the pass judgment results described in their underlying companys forward statement-Changes in laws regulations, including changes in accounting standards, tax incomeation requirements, (including tax rate changes, new revised tax law interpretations) environmental laws in domestic or contrary jurisdictions.Political conditions, especially in international markets, including civil unrest, government changes restrictions on the ability to transfer capital across borders.Their ability to penetrate developing emerging markets, which also depends on economic political conditions, how thoroughly they are able to acquire or form strategic business alliances with local bottlers make needed infrastructure enhancements to production facilities, distribution networks, sales equipment and technology.(, 2010)2.1b. Economic aspects The U.S. economy was strong nearly every part of it was growing doing well, however things changed. Most economists loosely define a recession as 2 full- competency quarters of contraction, or negative GDP growth.The non-alcoholic beverage industry has high sales in countries away(p) the U.S. According to the Standard and Poors Industry check up ons, For study soft drink companies, thither has been economic improvement in many major international markets, such as Japan, Brazil, Germany. These markets will continue to play a major role in the success stable growth for a majority of the non-alcoho lic beverage industry.2.1c. Social aspects legion(predicate) U.S. citizens are practicing healthier bearingstyles. This has impact the non-alcoholic beverage industry in that many are switching to bottled water diet colas instead of beer other alcoholic beverages. Also, time management has increased is at approximately 43% of households. The need for bottled water more convenient healthy products are important in the average day-by-day life. http//www.cdf-mn.orgConsumers from the ages of 37-55 are also increasingly concerned with nutrition. There is a large population of the age range known as the baby boomers. Since many are reaching an older age in life they are becoming more concerned with increasing their longevity. This will continue to affect the non-alcoholic beverage industry by increasing the demand overall in the healthier beverages.2.1d Technical aspects The effectiveness of companys advertising, marketing promotional programs is crucial task. The new technolog y of internet television is the use special effects for advertising through media. They make some products look attractive. This helps in selling of the products. This advertising makes the product attractive. This technology is being employ in media to sell their products.Introduction of cans and plastic bottles have increased sales for Coca-Cola as these are easier to enthral can bin them once they are used. CCE has instituted an internal carbon tax on air journey and encouraged the use of video conferencing internet document sharing. As the technology is getting advanced there has been introduction of new machineries. Due to introduction of these machineries the production of the CCE has increased tremendously than it was few years ago. (, 2007)CCE has 6 factories in Britain which use the most stat-of-the-art drinks technology to ensure top product choice speedy delivery. Europes largest soft drinks factory was opened by CCE in Wakefield, Yorkshire in 1990. The Wakefield factory has the technology to produce cans of Coca-Cola faster than bullets from a machine gun.2.2 SWOT of Coca Cola2.2a Strengths to build upon An extremely recognizable branding is one of the superlative strength of Coca-Cola. Out of the 5 leading soft-drink brands being sold worldwide, the company produces sells 4 of them, Coca-Cola, Sprite, Fanta Diet Coke. Consumer subjection to the company its products remains high, which is evident from the high market acceptance ofCoca-Colas introduced products newly.Coca-Cola Zero, which was introduced in the North American market in 2005, garnered a 1% market share in supermarkets in the year of its launch. Enjoyed more than 685m clock a day around the world Coca-Cola stands as a simple, yet powerful symbol of quality and enjoyment was stated by Allen in 1995.The company has been entering other non-alcoholic beverages segments to widen its presence in the beverages market like sports drinks juices which has been successful. Minute- Maid is presently available across 80 nations, its share in several juice markets in the world improved with 11% increase in sales volume of Minute-Maid products in 2005.The yearbook per-capita consumption of the companys products is increasing worldwide stood at about 32 servings (1 serving = 8 US roving ounces of finished beverage) in 1985, increasing to 55 servings in 1995. In 2005, the average consumption per-capita was 77 servings. In North America, companys products stood at about 413 servings in 2005.(, 2010)2.2b Weakness to overcome In January 2004,CCE has introduced the Dasani brand of bottled water in the UK. By sue 2004,Coca-Colarecalled the product owing to the discovery of excess levels of bromate in the product, which could cause side effects including cancer in human beings. This resulted in recall expenses of $32m for the company.Coca-Colas sales have been hampered to a reliable extent by rumours myths about the company its products. The companys sales in the Middle East were affected by rumours alleging thatCoca-Colais a Jewish company its trademark carries anti-Muslim messages. The companys sales in South Asia, particularly in India, were affected in recent years ascribable to allegations ofCoca-Colas drinks containing pesticides. These rumours myths have impaired the companys image to some extent. (, 2010)The companys bottling activities are preponderantly carried out by 3rd parties or bottling partners. The companys 2nd largest contributor to revenues (close to 19% in the 1st quarter of 2006) was its Bottling Investments segment. Coca-Cola does not have any control over its bottling partners financial positions, which could be affected by market trends, competition their accessibility to capital resources. Though Coke has the right to unilaterally change prices of its syrups concentrates, the changes could be implement only if its bottling partners have the ability to pass on the price increases to their consumers. In light of the bottlers high ploughshare toCoca-Colas revenues, the company is more vulnerable to the threat of revenue impairment than its peers with more direct distribution activities. (, ND)2.2c Opportunities to exploit Coca-Colas products are being consumed, only 1.3b times a day. Furthermore, though Cokes products reach over 200 nations owing to its comprehensive distribution network, there are countries where the average per-capita consumption remains below 50 servings per day. Countries that worsening in this category include the worlds 2 most populated nations, India and China. These markets provide tremendous growth opportunities forCoca-Cola.The company has identified strategic areas for its expansion, which would complement its core business of manufacturing carbonated soft-drinks. In this regard, the company integrated its strategy, designing and marketing efforts pumped in additional financial resources of $400m in 2005. Itis also expected to enter the fresh brewed coffee an d tea businesses, on a trial basis, under the banner, Far Coast. (AsiaPulse News, 13 February 2004)The company special its revenue growth strategy by adopting the best practices that were followed in its systems in Brazil Argentina. The company is also working with the bottling partners for better implementation of its revenue growth strategy, to increase profitability from case volume sales improving efficiency in worldwide operations.The company also foresees greater potential for growth in the immediate-consumption channel drafted an immediate-consumption strategy for its worldwide operations. The company worked with its suppliers bottling partners to develop advanced equipment, which would offer a new beverage experience to the immediate-consumption channel. Coca-Colais also benchmarking best practices in its top immediate-consumption markets to be implemented in other worldwide markets.2.2d Threats to avoid The increasing awareness about obesity among consumers, particular ly youngsters, triggered by the consumption of non-diet carbonated soft drinks, is expected to dampen demand for the companys beverages from the youth segment in the future. In the recent past, consumer forums in the US threatened to file lawsuits againstCoca-Cola other carbonated soft-drink producers, for pursuing deceptive practices associated with contracts for selling carbonated soft drinks in schools.The main ingredient in most ofCoca-Colas products is water, a scarce resource in many countries callable to a host of factors including pollution of water bodies, inefficient water management and overexploitation of water resources. (Klebukov P, 22 declination 2003)The soft drink industry is very strong, but consumers are not necessarily get married to it. Tea, coffee, juices, milk hot chocolate are possible substitutes that continuously put pressure on Coke. Itfaces ruffian competition not only from global players such asPepsiCo, but also from local players. Competitors forCo ca-Cola include Cadbury Schweppes, Nestl, Kraft FoodsGroupe-Danone. The companys efforts towards consolidating its market position could be restrained by the increased competition from these players.2.3 Customer analysisIn a survey conducted recently by Coca Cola, a sequence of consumers purchasing option is recorded which is Taste, Brand name, Packaging, Price, Easy availability and advertisement. The intensity of colour the flavour are the detect drivers fuck consumer acceptance of beverages then the packaging labelling, says a new study involving DANONE. 10 to 20 year age groups are consuming more Coca Cola than any other age segmentation. The customers loyalty for Coca-Cola has unceasingly been consistent though cokes price is slightly higher to that of Pepsi other brands. In response to the growing consumer preference for low calorie products, Coke launched Coke Zero, Diet Coke other health drinks whose sales are on top throughout the world. (Khermouch G Brandy D, Au gust 4, 2003)2.4 Competitor analysisCoca-Colas direct competitor is PepsiCo whose strength is low carbonated energy drinks, weakness is collation foods. PepsiCo uses celebrities to attract customers. 60% of its wage come from snack foods 40% from drinks, PepsiCo has growing profits by 15% per annum. With Coca-Colas strength being in fizzy drinks, competitors would try to capitalize on its weaker products. Coca-Cola has recently acquired Subway soft drink business, which was previously served by Pepsi. Coke is the most popular beverage in the world, while Pepsi enjoys it only at home. By comparison, rival Pepsi-Colas brand encourage is a mere $11.78b. (Marketing, December 18 2003)2.5 Stakeholder analysisMost businesses have to consider the impact of their activities on stakeholders Coca-Cola is no exception. Coca-Cola identified its stakeholders as its employees, civil organizations, governments, regulatory authorities, non-governmental organizations, suppliers, consumers, inve stors, shareowners analysts. Understanding stakeholder concerns perceptions is essential to operating a successful business like Coke these positive long-term relationships built on the basis of trust earthy goals help them create a sustainable business growth. In 2006, engagement with stakeholders focused on key strategic issues like addressing obesity, water resource, packaging waste management, tackling climate change. In response to the employee engagement survey the company implemented action plans developed engagement internal communications. The company also worked with government agencies, NGOs industry peers to increase recycling protect water bodies. Coke has set up CRIS-consumer response information centres in every country to address consumer enquiries. Regular communications with shareholders include road-shows, web-casts briefings. (, ND)3. STRATEGY ASSESSMENTCoca-Cola now gets 2/3rds of its revenues from outside the United States. Its easier to name the cou ntries where coke is not available. Everywhere else including such tricky markets as Pakistan, Cambodia, Liberia, Zimbabwe, Liberia Colombia Coke is a beloved consumer staple. The brand is so strong entrenched that even the anti-American sentiments of 9/11 after have not hurt the sales. Coca-Colas brand valuation increased from $68.95b in August 2001 to $70.45b in 2003. Coca-Cola remains the top global brand, achieving the top ranking in BusinessWeeks Global Brand Scorecard once again in 2003. A small set of recommendations would help achieve Coke attain greater heights as discussed below. (Wamer F, April 2003)4. RECOMMENDATIONS AND CONCLUSIONSWith the help of PEST, SWOT other analysis, the internal external environment of CCE has been analysed. Coca-Cola operations start across 28 countries establishing, developing emerging markets according to business infrastructure, economic development growth prospectus. done innovation acquisition, Coca-Cola owns operates 81 bottli ng plants, 64 soft drink plants, 3 juice plants 14 mineral water plants.The strength of Coca-Colas system allows infinite growth in the global market. They have the resources available for this opportunity but they must develop marketing strategies that have local appeal as this is essential for their success. Through their brand reputation vast marketing experience, Coca-Cola has the ability to extend the recognition of their brand logo. However it would be best to leverage brand equity their financial resources, to accelerate global market penetration with a view to long term profits. Coke must continue to evolve its market share. The effectiveness of TV ads is declining due to media fragmentation use of devices like TIVO that let viewers zap commercials. So it is advisable for Coke should vary money previously spent on TV towards more experimental activities like setting up of lounges in teen malls offer exclusive music videos, video games sell coke drinks from Coke machin es. (Faust D, p.77, demo 1, 2004)With the threat of political economical instability, Coke must consider each countrys unique cultural, political, legal economic environment to extend its market share.With the threat of increasing health consciousness among consumers, it is advisable for Coke to march on resource their fruit drink product lines as this market sector is growing rapidly. In move out an appropriate marketing mix, Coke must consider product, distribution, promotion price, therefore developing a marketing mix for each customer group.In a fairly saturated slow touching beverage industry if Coca-Cola can diversify expand on these products globally they would gain a wide market share a great competitive advantage that would allow for greater long-term profits increase dominations into the next century.LIST OF REFERENCESwww.coca-cola.com.Coca-Cola HBC 2006, Social Responsibility report 2006, www.coca-cocahbc.com, Greece.Viewed 5 December 2010, Viewed 5 December 20 10, Viewed 5 December 2010, Viewed 6 December 2010, Viewed 6 December 2010, Dean Faust, CokeWooing the TiVo Generation, BusinessWeek, March 1, 2004, p.77.Paul Klebukov, Cokes Sinful World, Forbes, December 22, 2003, p.86.Coca-Cola Japan to Debut Beer-flavoured Soda Next Month, AsiaPulse News, February 13, 2004.How Coke Moulded our view of Santa Claus to provoke Winter Sales, Marketing, December 18, 2003.Gerry Khermouch and Diane Brandy, The Top 100 Brands, BusinessWeek, August 4, 2003.Fara Wamer, Chris Lowe Time To Get Real, Fast Company, April 2003.