Marketing Strategy for Coca Cola New Juice Product

Introduction

In today’s dynamic, hypercompetitive business environment, marketers faces different challenges and unprecedented barriers to retaining existing customers and attracting prospects. This is especially true for multinational corporations such as Coca-Cola which operate in relatively diverse markets. This project presents a marketing plan for Coca-Cola Company’s launch of a new product line in Kenya in order to diversify its current portfolio and exploit new opportunities in this market.

Company Description

Coca-Cola Company is the world’s leading beverage company founded in 1886 and headquartered in Atlanta, Georgia, United States. It has experienced tremendous growth and success, becoming the best brand value and leader in the global beverage industry (Campbell, 2017). Coca-Cola is a multinational company that travels almost everywhere in the world. It is involved in the distribution, commercialization, production, and other non-alcoholic beverage syrups (Tortorice, 2021). In Kenya, Coca-Cola operates in all cities, sub-counties, and counties under the name Coca-Cola Kenya Limited. Its remarkable record has been attributed partly to its aggressive marketing strategies and supply strategies and robust distribution network (Banks, 2016; Singaram et al., 2019). Coca-Cola is selected for the report because of its global operations and the existence of vast data about its products and strategies. Large investments in research and development (R&D) and innovation have enabled the company to deliver competitive products and services (Gehani, 2016). These factors contribute to Coca-Cola’s global leadership.

The corporation demonstrates a strong commitment to delivering high-quality beverages. This is reflected in its purpose: “Refresh the world. Make a difference” (Coca-Cola Company, n.d.). The company emphasizes customer satisfaction by delivering products that match its unique needs. This manifests in its vision “to craft the brands and choice of drinks that people love, to refresh them in body & spirit” (Coca-Cola Company, n.d.). This statement is settled in a way that makes the business a continuous and a shared future in the lives of people, communities, and the entire world.

Coca Coal faces numerous challenges in its global business operations including marketing. The beverage maker has been criticized for unsustainable sourcing, unethical advertising, and health concerns of their products (Bhasin et al., 2018). Therefore, this project presents a focused marketing plan to help Coca-Cola maintain its global leadership position, attract new customers, and increase its market share in Kenya. The specific objectives of the marketing plan include the following:

  • Achieve a 25% increase in brand awareness of Coca-Cola Company in Kenya by implementing a six-month digital and social media campaign.
  • Realize a 36% increase in website traffic and a 25% improvement in conversion rates.
  • Gain more social media followers through the robust website and social media engagement.
  • Enhance customer loyalty and retention through sponsorship of athletics and sports events.

Situation Analysis

PESTLE Analysis

Political Factors

An in-depth assessment of Kenya’s political environment shows that the political situation is unstable. Despite significant milestones such as the new constitution, the country experiences frequent political contestations (Orr, 2019). Bitar et al. (2019) caution that such events are detrimental to foreign direct investments and the profitability of businesses. Coca-Cola brands, for example, have been advertised by roadshows. If any Kenya region is denied access for political reasons, the firm’s product marketing will be influenced significantly.

Economic Factors

In recent years, Kenya’s economic conditions have been unattractive. According to Muigai and Cherono (2019), the country experiences tumultuous financial times characterized by significant fluctuations in exchange rates and financial crises. Although the Coca-Cola price is average and demand is stable, these trends can be detrimental to the company’s operations.

Social Factors

The growing consumer health consciousness is perhaps the most serious threat to Coca-Cola’s profitability. Many Kenyans are increasingly making healthy choices when purchasing drinks and other foods, with product attributes such as quality, price, and safety having a significant influence on their purchase behavior (Bebe et al., 2020). Overall, this trend is a threat to Coca-Cola because customers may turn to healthier options such as juices and water. Nevertheless, the steady population increase makes the market attractive because this trend translates to high demand for Coca-Cola products.

Technological Factors

Kenya holds promise in terms of technological advancement and innovations. Notably, rapid growth in mobile phone penetration, enhanced access to fast internet, online marketing, and mobile money make Kenya a regional leader in technology and innovation (Fwaya & Kesa, 2018). These innovations have revolutionized digital marketing in the country, which manifests in new marketing strategies such as social media, content, video, email, and influencer marketing, as well as Search Engine Optimization. These trends can support Coca-Cola’s demand for the highest advertising technologies to maintain its leadership position both locally and internationally markets.

Legal and Environmental Factors

Kenyan business and environmental law standards have a considerable impact on beverage markers in the country. Kenya has relatively higher corporate taxes which are a significant expense to local and foreign firms (Osebe et al., 2019). In addition, the current environmental regulatory regime in the country requires strict compliance with numerous fragmented pieces of legislation, which makes the market hostile, especially to foreign investors.

SWOT Analysis

One of Coca-Cola’s main strengths is that it has the strongest international brand value. They can make substantial marketing investments to enhance their market share for new brands in Kenya. Coca-Cola’s international leadership is known throughout the world. The company has a strong connection with strategic partners. There is a wide range of products available in the firm. The risk is diversified since revenue is generated from the various regions of Kenya (Tortorice, 2021). As in the international market, Coca-Cola does not have its production configurations. The dependence on strategic partners is, therefore, high. Coke was unavailable, mainly because the Nairobi bottlers in Kenya could not supply the company with sufficient bottles.

Because the living standards of Kenyans change rapidly, people regularly eat in restaurants. Coca-Cola has the possibility of establishing a more strategic partnership with hotels and restaurants with a high demand for drinks. Thus, supply chain and marketing can be further improved by forming strategic alliances. To enhance sales, Coca-Cola can benefit from various marketing platforms, including social networking.

Strengths Weaknesses
  • Strong brand recognition and equity
  • Larger market share and global reach
  • Strong customer base
  • Extensive distribution network
  • Strong connections with strategic partners
  • Diversified product portfolio
  • Weak focus on healthy beverage options
Opportunities Threats
  • Growing population
  • Improvement in living standards
  • Rapid advances in marketing technology and innovation
  • Strong demand for drinks in new emerging markets
  • Fierce competition from local and international brands
  • Growing consumer health concerns
  • Unfavourable laws and regulations relating sourcing raw materials and packaging of finished products
  • Political instability and security concerns

Coca-Cola and local beverage producers are keen on entering the market and securing their market segment. In the Kenya market, brands such as Club Ten are being presented and observed as direct competitors for the enterprise. It has also been noted that Kenyans have become more aware of their health because drink consumption could be reduced over time. Soft drink campaigns are familiar to the entire world market, potentially influencing the company’s performance.

Description of New Product

The Coca-Cola Company currently focuses on the sales of carbonated drinks like Fanta and Sprite. This project proposes a low-calorie, less-sweetened, less-caffeinated energy drink. The product will be rich in Vitamin C and antioxidants, thus making it perfect for health-conscious medium to high-income, urban adolescents and young adults. In terms of psychographics, the healthy energy drink targets athletes and other people who engage in challenging exercise and recreational activities. It will be a major effort for Coca-Cola to make more nutritious drinks since it has limited brands like minute maid juice (Abbasi, 2017). This will be profitable to the company as many people focus on consuming healthier beverages, thus guaranteeing huge sales in the future.

Marketing Strategies

Segmentation Strategy and Potential Target Market

The target market will be children below 12 years of age as they have somehow been eliminated from consumption of Coca-Cola carbonated drinks. Moreover, this product will target aging people and those with health problems who require non-carbonated glasses for refreshment purposes. Furthermore, WHO records will be referred to in making this decision.

Positioning and Differentiation Strategy

The new product’s position in the market will be based on its characteristics and price. The new development will be non-carbonated and affordable to all groups of people in terms of price. Positioning based on price will favor consumers as most will be dependent. The cost of the new product will also be slightly different from competitors’ prices to win more consumers in the market. Carbon level in the further development will be zero percentage to win the loyalty of consumers.

Product Strategies

The new juice brand will be of great health benefit to growing children, aging people, and sick ones. It will be extracted from graves and added to vitamin D, potassium, calcium, and folate, all for the benefit of consumers. The product will contain zero levels of added sugars to avoid complications for its consumers. The product name will be delivered from raw materials used to produce the product to win the interest of children and aged people. The new juice brand will also be packed with transparent attractive and unique designed bottles.

Pricing Strategy

Penetrating pricing will be used to attract customers and gain market share for the new juice brand. The price will then be raised once the market share is achieved. This will help Coca-Cola avoid facing hardship when releasing a new juice brand in the market due to the high rate of competition.

Distribution Strategy

Consumers will be able to order the new product both online and in-store. This will assist in avoiding eliminating consumers in remote areas and developing countries. New juice brands will be readily available in retail and wholesale both internationally and locally. Selecting a perfect distribution path will be important to developing an effective delivery channel to distribute the new juice brand to consumers (Seabrook, 2020). Coca-Cola will use an intensive distribution channel to supply new juice brands to every retail seller in every corner station to ensure the availability of the product and to target a mass level of distribution.

Promotion Strategy

Coca-Cola will focus on the billboard and not on a cultural ad. It will also be done in the oncoming football World Cup. Although Coke Studio’s best approach is online, one of the best ways to follow the message to the youth is to add social media. In sales promotion, Coca-Cola Company will employ both Pull and Push strategies.

Social Responsibility

The concept of “Live Positively” has been developed under a Coca-Cola corporate social responsibility policy, covering seven key areas: beverage benefits, healthy living, social life, energy and climate, sustainable packaging, water management, and the workplace. The company has established these core areas to meet objectives and improve sustainability practices. Moreover, Coca-Cola is implementing more reputational initiatives. For example, Coca-Cola became the CEO of the Water Mandate. It worked in cooperation with the World Wildlife Fund (WWF) on the water issues of the company and the control measures after the environmental conflict in India.

Conclusion

Coca-Cola has done great to attract and retaining clients using different international marketing methods. It has become a symbol of American products throughout the world. People living in other parts of the world are addicted to Coca-Cola products. This is one of the reasons why Coca-Cola has achieved the brand value lead. However, little has been done to produce healthier products, hence the need to produce non-carbonated products.

References

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Banks, H. (2016). The business of peace: Coca-Cola’s contribution to stability, growth, and optimism. Business Horizons, 59(5), 455-461. Web.

Bebe, B. O., van der Lee, J., & Kilelu, C. W. (2020). Consumer purchasing behaviour and risk perceptions about milk products in Kenyan towns. Education, 51(29), 0-079. Web.

Bhasin, H., Isaac, Hassan, B., Bryce, Gendy, I., Dhruv, Chungh, S. (2018). Marketing strategy of Coca-Cola – Coca-Cola strategy. Marketing91. Web.

Bitar, N., Hamadeh, M., & Khoueiri, R. (2019). Impact of Political Instability on Foreign Direct Investment in Lebanon. Asian Social Science, 16(1), 41-48. Web.

Campbell, Chris. (2017). The Coca-Cola Company. Encyclopædia Britannica. Web.

Coca-Cola Company. (n.d.). Who we are: The Coca-Cola Company. Web.

Fwaya, E. V. O., & Kesa, H. (2018). The fourth industrial revolution: Implications for hotels in South Africa and Kenya. Tourism: An International Interdisciplinary Journal, 66(3), 349-353. Web.

Gehani, R. R. (2016). Corporate brand value shifting from identity to innovation capability: from Coca-Cola to Apple. Journal of Technology Management & Innovation, 11(3), 11-20. Web.

Muigai, R. G., & Cherono, I. (2019). effect of foreign exchange rates volatility on share prices of listed firms in Kenya. European Journal of Economic and Financial Research, 3(5). Web.

Orr, D. W. (2019). Renegotiating the periphery: oil discovery, devolution, and political contestation in Kenya. The Extractive Industries and Society, 6(1), 136-144. Web.

Osebe, P. R., Kirui, J. K., & Naibei, I. K. (2019). Impact of Corporate Governance on Effective Corporate Tax Rates Among Listed Firms in Kenya. Research Journal of Finance and Accounting, 10(18), 23-34. Web.

Seabrook, E. por A. (2019). What You Can Learn from Coca-Cola’s Marketing Strategy: Merca2.0. Revista Merca2.0. Web.

Singaram, R., Ramasubramani, A., Mehta, A., & Arora, P. (2019). Coca-Cola: A study on the marketing strategies for millenniums focusing on India. IJARD, ISSN, 2455-4030. Web.

Tortorice, D. (2021). Pepsi Marketing Strategy: 4 Takeaways from 55 Years of Advertising. Brafton. Web.

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NerdyRoo. (2022, June 27). Marketing Strategy for Coca Cola New Juice Product. Retrieved from https://nerdyroo.com/marketing-strategy-for-coca-cola-new-juice-product/

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"Marketing Strategy for Coca Cola New Juice Product." NerdyRoo, 27 June 2022, nerdyroo.com/marketing-strategy-for-coca-cola-new-juice-product/.

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NerdyRoo. "Marketing Strategy for Coca Cola New Juice Product." June 27, 2022. https://nerdyroo.com/marketing-strategy-for-coca-cola-new-juice-product/.

References

NerdyRoo. 2022. "Marketing Strategy for Coca Cola New Juice Product." June 27, 2022. https://nerdyroo.com/marketing-strategy-for-coca-cola-new-juice-product/.

References

NerdyRoo. (2022) 'Marketing Strategy for Coca Cola New Juice Product'. 27 June.

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