A marketing strategy is built to meet the target of the organization by satisfying the needs of the customers. A well-developed strategy is required in order to attain success in the present competitive market. For this purpose marketing strategies are adopted and it involves decisions on promotion, distribution, product and price strategies of the product. In the marketing strategy decision, all variables in the marketing mix are important. In this study, a promotional mix of marketing strategies is analyzed in detail for the selected product.
The product selected for this study is Coca-Cola. The brand selected for study is Coca-Cola BlaK which was launched in the US in 2006. It is a coffee-flavored cola, containing extra caffeine which makes it smell like coffee and is aimed at adults.
Coca-Cola is the largest manufacturer of non-alcoholic beverage concentrates and syrups. Coca-Cola operates its business in many countries. It was established in 1886 and its corporate headquarters is in Atlanta. Coca-Cola is a soft drink that is available in more than 200 countries. It is having a wide range of brands, nearly 400 beverage brands.
The marketing mix is the combination of four important factors in marketing. The four factors are commonly referred to as marketing mix (4 P’s) which involves a combination of factors of product, price, place (distribution), and promotion.
Product means the tangible or intangible product or service provided to the customers. The organization has to make product-related decisions such as appearance, utilities, packaging, warranty, service, etc. Pricing decisions study competitors’ prices, and profit margins are set accordingly. It involves various decisions on pricing such as discounts, financing, leasing, etc. In addition, there are many ways to price a product such as penetration pricing, premium pricing, product line pricing, price skimming, economy pricing, etc. Place or distribution aspect of the marketing mix involves decisions on market coverage, channel decisions, logistics management. It involves all activities associated with the channel of distribution which serve as a means for getting goods to the consumers. Promotion activity of marketing mix involves decisions such as advertising, media selection, public relation, etc. Thus, marketing mix is the tool in assisting marketing strategy implementation. The marketing mix plays a very important role in marketing strategy decisions and is having a crucial role in setting an organizational goal.
Promotional strategies involve all the activities undertaken to communicate information to prospective clients or customers. The decisions are related to communicating and selling to consumers. It involves huge costs and decisions are taken by making break-even analysis in proportion to the product cost. Promotional costs can be decided by knowing the value of the customers and can determine whether additional costs are worth acquiring them. It is the marketing manager who makes major decisions on promotional activities. Marketing managers develop effective promotional strategies such as sales promotion, public relations, personal selling and selling process.
- To create awareness about the product Coco Blak
- To gain market shares through new product
Coca-Cola has spent a huge amount on advertisement and is using different media such as television, printed displays, sponsorship, contests and internet advertisements.
It is the activity undertaken by the organization to promote sales. Examples of sales promotion activities are free samples, free gifts, buy one and get one free, etc. Coca-Cola utilizes promotional activities such as contests, coupons, free samples, etc.
It is the communication between the organization and the public. Public relations generally aim to create goodwill for the firm. It is the deliberate, well-planned effort to establish and maintain a good understanding between an organization and the public. Coca-Cola is maintaining good public relations by conducting special events in schools, colleges and even in sports events like sponsorship activities. In addition, they are communicating to the public through conferences and other press releases including television.
“One of the marketing department’s functions is to manage public relations and maintain a positive and beneficial image of the firm’s policies and products.” (The ‘Coca-Cola’ brand and sponsorship: Sponsorship and the marketing mix, 2000).
Personal selling means the selling by an individual salesman who provides services or products to the customer. It is the step taken for the development of long-standing relationships with clients. Coca-Cola is taking steps for personal selling by having direct contact with retailers, sales kit strategies, etc.
Advertising plays a crucial role in the success of the promotional activity of Coca-Cola. The purpose of the advertisement is to create awareness of the product in the customers. Coca-Cola is using several media such as television, internet, radio outdoors. “Coca-Cola uses its familiar red and white logos and retains themes of togetherness and enjoyment throughout its marketing communications.” (Introduction to marketing communications: What are marketing communications, 2008).
Coca-Cola is adopting sales promotion with stress on its brand name while advertising its unique brands. Coca-Cola is the most recognized brand in the world even though they introduced several brands with different names by keeping their trademark. In many cases, they are adopting a mass marketing strategy.
Introduction to marketing communications: What are marketing communications? (2008). Marketing Teacher. Web.
The ‘Coca-Cola’ brand and sponsorship: Sponsorship and the marketing mix. (2000). Business 2000. Web.