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International Marketing Communications

  • 18 Pages
  • Published On: 14-12-2023


The Coca-Cola Group is an American multinational company, manufacturer, distributor and seller of non-alcoholic soda and syrup beverages. John Stith Pemberton founded Coca-Cola in 1886 in Atlanta, Georgia.

1.1 Summary of AS1

Summary of AS1

1.2 Challenges for an effective communication campaign

In order to address emerging problems and possibilities, coca-cola faces the problem of a contact approach. They need to change the contact approach from time to time this is because of their main rivals, such as Pepsi. For example, a counter-campaign including actors who oppose your mission might encourage them to reach new audiences; or it could make changes to schedule events that are suddenly put externally on campaign advocacy. Specific communications practices or materials may perform better than others, leading to increased performance and decreased activities that do not appear to work. New partners will appear with support offerings that may entail strategic changes (Kraak et al., 2019).

Mass media cannot always be the suitable means, mainly when it is not in the language that it understands or through a channel, to reach disadvantaged people, especially those with multiple prejudices. For instance, certain small rural areas do not understand the standard national language. They may not have sufficient access to radio, TV or the internet, and in this case, printing content is more valuable (including pictorials for illiterate communities). There may be niche media in specific contexts that serve vulnerable populations – such as Braille printed media, minority language radio, or TV stations (Perez, 2017). It is recommended for Coca-Cola to investigate how they can be used successfully in campaigns. Furthermore, outreach work may be an essential means of reaching the vulnerable groups by training people who are familiar with their target neighborhoods. For more guidance, please see the Community Mobilization section.

2. Product


Coca-Cola has about 500 brands, including several beverage lines offering its consumers around 3,900 drinks. Their name is worth nearly $21 billion in financial resources.

2.1 Product portfolio

A Boston matrix is an excellent way to analyze a product portfolio. In terms of their market share and growth, Boston Matrix models are used to compare goods. Some of the most known brands are Fanta, PowerAde, Fresca, Zero Coca-Cola, Simply Orange, Del Valle, Coca-Cola, Minute Maid, Coke Diet and Sprite Vitamin Drink. In addition, it sells other food ranges and these soft beverages, such as juice drinks, sports drinks, energy drinks, tea, and coffee.

BCG Matrix has helped coca-cola analyze product lines and how they can improve its share in the market. Coca-cola is trying to produce brands that appeal to and distinguish itself from the competition on their target market. They do this by making a whole new product or by adding something new or different to a current product (market-oriented). The distinction of product could lead to a specific point of sale (USP). Coca-cola launched a new product last year that was to be introduced in the market in January 2021 (Endong et al., 2019).

the bcg matrik Service launch decisions and Mar-coms

2.2 Service launch decisions and Mar-coms farm works application

Mar- coms enabled coca-cola to introduce Coca-Cola with Coffee products to quench the consumer’s demands. According to the company director, the beverage was a direct response to consumer’s desires; furthermore, it is introduced with new recipes that quench the thirst of US consumers. This meant that the product was launched due to Marcomms strategy; through the strategy, the organization was able to note and acknowledge the new product's consumers' demand. They have made a sparkling drink that gives a good taste of Coca-Cola, filled with Brazilian coffee (Suay, 2020).

Coca-Cola has more than Life Cycle, where new products are produced and are matured at the same time.

Coca-Cola continues to be the world's most selected brand with a 42% global penetration – penetration rises to over 80% of the population in nine countries. In 2016-14 million more houses were chosen by Dove for the brand last year, attracting the newest households. Coca-Cola is an average consumer-branded decision of $1.92. This decision is a massive benefit of the decisions made by consumers (Suay-Pérez, 2020). Coca-Cola is the most selected FMCG brand in the country and around the world. According to Kantars world panels analysis, coca colas emerging market accounts for 51 percent of the global spending and fast-moving consumer products. This has been achieved because of their communication campaign strategy (Moravcikova & Kliestikova, 2017).

3. Pricing and estimation demand

In this section, we will analyze the estimated demand s of Coca-Cola products in the market. Demand means the will to buy a product that consumers can buy." The market is divided into two factors: the buying interest and the buying force (Vrontis et al., 2020).

3.1. Estimate demand

An economic rule provides that the target value decreases as the price of a product or service rises and vice versa." The law is the relation between the price of the commodity and the quantity of the product requested. For example, if the prices of the coke rise, fewer people are demanding the product because it is above the consumer's capacity and if the coke price falls, more persons want the product because it is under the consumer's capacity. In this line, coca colas demand has been on the rise because the price is within consumer’s budget and expectations (Wood et al., 2020).

Price elasticity is also the rise or decrease in demand responsiveness with price transition. In line with the law on consumption, the demand suffers a drop when the price of a good is higher. In practice, more buyers want to purchase the commodity as prices go through the decline period, and thus the market rises. This means that the market for a soft drink will increase as the price for Coca-Cola falls. There are different explanations for the reverse relationship between the amount requested and the price. The precise connection between customer requests and revenues, for example, is realistic. This suggests that the impact of income with a price shift will influence the Coca-Cola market. Coca-Cola has invested in ads globally on average 4 billion annually in the last six years. US expenditures represent over 20% of this cost and, in 2018, a total of USD 913 million. In 2017 the bulk of Coca-Cola's distribution value was also made up of soft drinks (Panjaitan, 2020). Therefore if coca colas price were to go up, the company would have lost revenues from advertisement. Because the company many invest in advertisement in order to attract and improve their customer base and attract customers.

3.2 Evaluation of price

The following profit curve shows the connection between price variations and volume fluctuations, thus maintaining a steady profit margin of 25 percent:

Evaluation of price

The unit price is $10 with a margin of 25 percent. Hence, the unit cost is $7.5. For 100 units, the original benefit is $250. The company would now sell 200 units (plus 100 percent of market volume) to achieve the same profit with a 12 percent reduction in prices.

Price fluctuations in elastic markets lead to instability in demand. The optimal price policy then is to reduce the price so that a certain good can be sold even more. The two curves in the graph below show this. The initial state is (0%; 0%); at this point, the iso-profit curve reduces the demand curve (Fill & Turnbull, 2019). The growth in profit is evident in all points in the demand curve that are above the Iso value curve. We should then ensure that the company concerned can raise its earnings by lowering the price.

lowering the price

For instance, sod demand (Coca-Cola or Mountain Dew) is highly elastic, according to Ayers and Collinge. This suggests that a minor price fluctuation may result in a significant shift in demand due to competition in the beverage market. In certain cases, shoppers would continue to acquire Pepsi if Coca-Cola gets more costly and the market for Coca-Cola is collapsed. Coca-Cola is, on the other hand, mindful of its commodity market elasticity and could actually opt to lower the beverage price, thus reducing Pepsi requirements (Tariq, 2017).

opt to lower the beverage price, thus reducing Pepsi requirements (Tariq, 2017). Coca-Cola used the combined elements using a technique of the mass media, including TV advertising, print media and banner advertisements. The strategy used a campaign mixture of advertisements, targeted marketing and web-based, digital marketing and promotion of social media as their main Mar-com strategy.

4. Promotion

Coca-Cola has been one of the world's most popular sellers of soft drinks. It is due to the fact that the firm has outstanding plans for exploiting both current and emerging opportunities to ensure the popularity of the soda drink. The tactics saw outstanding promotions and publicity promotions that saw the global popularity of their brands.

4.1 Hypothesis impact of promotion on and offline on sales

Coca-Cola uses Push's distribution and promotional funding approach to encourage the intermediaries to transport, promote and market the product to end-users, i.e. customers. Coca-Cola, for example, offers manufacturers, owners and dealers free pet bottles and other trading programs. Coca-Cola also uses a Pull tactic to convince customers to request intermediaries for the brand label of the business to induce Coca-Cola from the client to buy from the shopkeeper. The advertisement and promotional approach (Gertner & Rifkin, 2018). For instance, coca-cola uses flanges, shelves, racks, stands, mobile hangers and brand lights for the Visi cooler.

4.2 Recommendations

We recommend Coca-Cola use both the Push and Pull strategy and mix it with its swot analysis to improve on its global presence. The Pull and push strategy will help the organization depend on customers directly rather than relying on retailers. They have a push strategy if they just sell through retailers. When they sell to dealers such as supermarkets or big distributors, the difficulty always lies in ensuring that the product demands enough. The dealer may wish to substitute his product for his own alternative. It's a pull tactic if it's just selling directly to consumers. With economies, the climate and clients changing, all tactics should be taken into consideration (Singaram et al., 2019). Chocolates in Thornton run in separate ways, both techniques. They have their own labelling option to distribute and package products in their own brand packaging to individual retailers and sell directly to consumers in highway, online, or other retail outlets.

The South African winery shows a Push and Pull strategy example. From selling 50,000 wines a year in 2004, Stormhoek wines went to 200,000 in 2006 (Rossiter et al., 2018). As a small company on the budget, they had the struggle to compete for the shelf space of the retailer and wanted buyers who spoke about it. Their conventional market model was changed from a shift to a shift approach. Via the blog, 100 bloggers in the UK and Ireland received a bottle of wine

4.3 Definition of a promotional campaign

While it has an already successful brand identity, Coca-Cola still uses discount promotions to attract potential buyers and to offer incentives to their loyal consumers to buy more of their products. Coca-Cola is a large-scale advertiser. Coca-Cola sponsors many events and uses those stages to promote sales because, for example, Coca-Cola sponsors a sporting event, it usually raffles tickets in any of its bottles and cartons. This is a great promotion as it applies to several different classes of people from underprivileged individuals who cannot afford event tickets and buy a coke to try to win (Abbasi, 2017).

5. Media Plan and communication Plan

The aim of media planning is to attract as much of the right audience at the right time at the right expense as possible and at the right venue. In this section, we are going to discuss the media and communication pals of the company.

4.1 Communication Plan

The communications organized by the company currently include advertising, targeted marketing, interactive/internet marketing, sales advocacy, public relations, personal sales, and sponsorship marketing. For this business, advertising is incredibly relevant since its huge client base is so global. The business uses influential promotional tactics to succeed and to bring new clients overseas. In Coca-Cola commercials, slogans are very catchy and narrative, creating a lasting effect on the spectators (Wood et al., 2020).

FCB Matrix

In order to maintain a strong customer relationship, Coca-Cola still struggled. They want the name and brands of their products to be a part of people's everyday lives and a tradition linked to particular or unique occasions to use social media to generate sentiments and feelings of consumer association. To this end, the corporation uses IMC, which is used as a means of communicating with its target customers/market. This scheme is modified and tailored according to the changing demand, culture, opportunity and product positioning.

4.2 Media Plan and Budgetin

Beverage firms have been looking to include product, packaging, equipment and customer experience creativity in order to boost their sales with their CSD portfolio. In the past few years, Coca-Cola, in particular, has sought to expand advertising and media budgets, despite being among the world's most recognized brands. By optimizing productivity, Coca-Cola aims to attract this increase fund. The aim was to enhance Coca-drink Cola's portfolio revenues as well as to strengthen the functionality and productivity of its operations, and to enhance Coca-marketing Cola's and promotion activities (Baack, et al., 2018).

Sources: Forbes,2020 Coca colas ads spend 2014- 2020, source:  Statista 202

The firm strengthened its marketing effort sequentially last year, despite Coca-stronghold Cola's in the soft drink industry and wide global presence. Coca-Cola claims that its user base can be expanded by experiential marketing that seeks to establish an emotional connection with consumers. For Coca-Cola, a good market understanding is important since the unhealthy tag for these beverages leads to headwinds in the CSD category (Baack, et al., 2018).

6. Control Plan to optimize the devised communication strategy

Coca colas KPIs strategy

A priority weighting level of KPIs is expected for designing output measurement instruments in the cocoa SME sector. The priority weighting of KPIs is adopted by the AHP approach based on the effects of recognition and validations for 12 KPIs from the consumer viewpoint.

Order Now Coca colas Gantt chart

7. Recommendation

Coca-Cola should consider using, Market Skimming, penetration, and Discounts as other alternative marketing strategies. They can use Coke Zero to be able to penetrate the market; this will serve as their advantage to garb a target market. Pepsi has no product like Coke Zero, so it would be easy for Coca-Cola to win market share with this strategy.

Because the companies' customers are not always near its products, they should consider using the intensive distribution of their products, particularly for coke Zero, because this is the most appropriate distribution for coke Zero in most markets. The product should be targeted mostly to the hospital canteens, supermarkets and other retail shops. Because of health concerns, Coke Zero is the best product to make Coca-Cola Company win big.


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