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The marketing mix of “Coca-Cola Life”

Term Paper 2015 16 Pages

Business economics - Marketing, Corporate Communication, CRM, Market Research, Social Media

Excerpt

Table of Contents

Executive Summary

1 Introduction
1.1 Authorisation and purpose
1.2 Limitations
1.3 Scope

2 Background
2.1 The Organisation
2.2 The Product ‘Coca-Cola Life’
2.3 SWOT Analysis
2.4 Main Target Market of Coca-Cola Life

3 Product
3.1 Three Layers of Coca-Cola Life
3.2 Classification of Coca-Cola Life
3.3 Stage of the Product Life Cycle for Coca-Cola Life
3.4 The Branding of Coca-Cola Life

4 Price
4.1 The Price of Coca-Cola Life compared to Competitors’ Prices
4.2 Pricing Objectives
4.3 Price Elasticity
4.4 Influencing Factors on the Price

5 Promotion
5.1 Integrated Marketing Communication (IMC)
5.2 Advertisement of Coca-Cola Life

6 Conclusion

7 Innovative Recommendations
7.1 Not Only Look Green - Be Green
7.2 The Sustainability of the Recycling System

References

Executive Summary

This report was commissioned to examine the marketing of Coca-Cola Life which is distributed by the Coca-Cola Company. The research draws attention to the company’s background and evaluates the background of Coca-Cola Life. Further, it follows an analysis of the product in relation to the marketing mix theory and concepts. Thereby the focus is on the product, price and promotion. Finally, two innovative recommendations will be given, relating to the improvement of the sustainable aspects of Coca-Cola Life’s marketing.

In conducting this report only secondary research methodologies were used implementing resources such as using books and websites. In relation to the product life cycle it is evident that Coca-Cola Life is currently in the growth stage as it continues to increase sales. It is obvious that the product is within the category of non-durable goods. The ‘core’ product is a refreshing soft drink with a unique taste and 35% less sugar and kilojoules, sweetened with stevia as a natural source. The ‘actual’ product is a glass bottle with a brown liquid inside and a green label with a small leaf logo. The ‘augmented’ product is the actual product plus contact details of the company, a help line and a complaint phone service. Usually the price of a 600ml bottle of Coca-Cola Life is around $3.50 which is positioned above the price of the direct competitor Pepsi True. Compared to indirect competitors the price is set in the upper margin. With regard to the promotion of Coca-Cola Life the Coca-Cola Company uses different ways to communicate the product whereby campaigns that wake emotions are currently at a premium.

Evaluation of this product lead to the following recommendations: A weakness was identified in the ingredients. It is recommended that the ingredients should be mostly organic and the sugar should be completely removed in order to satisfy customer needs and wants. Special attention should be paid to the recycling system. It is recommended that the company target itself on reusable packaging instead of one-way drink packaging. Recommendations have been made to suggest that a more sustainable view of Coca-Cola Life and its environment could potentially increase market share and future profits.

1 Introduction

1.1 Authorisation and purpose

This report was authorised at the University of the Sunshine Coast, Australia. The purpose of the report is to deliver a marketing analysis of the product Coca Cola Life (Coke Life), based on a print ad. This report also aims to develop innovative recommendations to help to improve the marketing strategy for Coke Life by using various marketing theories.

1.2 Limitations

This report is limited to the field of marketing and specifically the marketing mix and marketing theory concepts of the product, price and promotion regarding the product Coke Life. In addition this report is limited by the available timeframe and the fact that not all company information was made available for the product Coke Life. Therefore the marketing theory has been implemented and assumptions have been made on the basis of this report.

1.3 Scope

This report contains the importance of the marketing mix and marketing concepts within the scope of product, price and promotion regarding the marketed product relating to a specific print advertisement of Coke Life. Further this report includes recommendations to improve the product offering and the communication of the offering.

2 Background

In this chapter some details about the company and its product Coke Life will be presented as well as the main target markets for this product. This includes an internal and external analysis of the company’s marketing environment.

2.1 The Organisation

The Coca-Cola Company (KO) is a multinational, stock listed company which was founded in 1886 by John Stith Pemberton. It is the world’s largest manufacturer of non-alcoholic beverage concentrates and syrups. Today it is headquartered in Atlanta, Georgia and its current CEO is Muhtar Kent (Coca Cola Deutschland 2015 & The Coca-Cola Company 2015).

2.2 The Product ‘Coca-Cola Life’

Coke Life is a carbonated soft drink with a combination of sugar and stevia leaf extract as sweeteners manufactured by KO (The Coca-Cola Company 2015). According to Table 1 the product can be bought at nearly every shop and supermarket in various countries all over the world.

Table 1: Facts about the product Coca Cola Life

illustration not visible in this excerpt

Source: The Coca-Cola Company (2015)

With the newest innovation, Coke Life, KO wants to offer their customers a version of Coke with fewer calories. Hence Coke Life was developed of a combination of sugar and the natural sweetness of stevia whereby this variation contains 35% less sugar and kilojoules. Consequently people who are more aware about health can be attracted. As a result the Company can expand their customer base (The Coca-Cola Company 2015).

2.3 SWOT Analysis

In the following the internal environment consisting of the strengths and weaknesses of the company and the external environment which are the opportunities and threats of KO will be demonstrated.

illustration not visible in this excerpt

Figure 1: SWOT analysis of Coca Cola Life Sources: MarketLine (2015); Bhasin (n.d.)

Appropriate strategies were derived from the SWOT analysis to reduce the most important weaknesses and risks, such as product recalls and poor water quality and to profit from the strengths and chances, like brand equity and supply chain improvement (Solomon et al. 2014).

2.4 Main Target Market of Coca-Cola Life

Coke Life is designed for adults who are looking for a great tasting Coke. Above all, it is designed for those who would like to drink a reduced calorie Coke with a sweetener of natural origin. These include inter alia persons with a hectic daily routine those are very concerned about naturalness and sustainability (The Coca-Cola Company 2015; Spaeth 2015).

3 Product

The product policy is one of the four basics of the marketing mix. The aim of the company is to differentiate their own product towards competitors’ for their target group and to reach a better identification of potential and existing customers (Kuß & Kleinaltenkamp 2011).

3.1 Three Layers of Coca-Cola Life

The three layers, which identify the consumers’ needs and wants of a product, are the core product, actual product and augmented product (Solomon et al. 2014).

illustration not visible in this excerpt

Figure 2: Layers of the product Coca Cola Life

Sources: Journey Redaktion (2015); Davis (n.d.); Wallop (2014)

3.2 Classification of Coca-Cola Life

Furthermore, marketers have to classify the product with a view to a better understanding of the purchase behaviour of consumers. As Coke Life provides a benefit over a short time it is part of non-durable goods. Moreover, consumers who buy Coke Life are obviously purchasing a convenience product, as customers just spend a little effort on the purchase decision, the product is frequently purchased and widely available (Solomon et al. 2014).

3.3 Stage of the Product Life Cycle for Coca-Cola Life

Far beyond the product policy, the product life cycle (PLZ) has a significant importance for marketing planning. Thereby, statements on sales potential of the product, the behaviour of competitors, the earning positions of the product and typical activities, like advertisement and price reductions, can be made over a specific period of time (Kuß & Kleinaltenkamp 2011). Coke Life was launched into the market in Argentina and Chile in 2013. Since 2014 the product has been introduced to further markets such as the United States, Great Britain and Germany. Therefore, relating to the PLZ Coke Life is currently in the growth stage as it continues to increase sales and persuade consumers to choose their product over similar products (The Coca-Cola Company 2014; Solomon et al. 2014). To stand out from the competitors the company should analyse possible product improvements or product alternatives in the growth phase. Price stability and distribution intensification affect sales and turnover positively (Pfaff, D 2004).

3.4 The Branding of Coca-Cola Life

The way consumers view a product is critical, therefore the branding of a product is a necessity and it is essential that organisations understand what brands to create when producing a product whether it be individual or family brands (Todor 2014). In relation to Coke Life it is obvious that the branding KO has created is a co-brand, as Coke Life is marketed under one brand; Coca-Cola (Solomon et al. 2014; Hepburn n.d.). Through the brand Coca-Cola people can link certain memory contents over a longer period which were built up by marketing measures like the co-branding (Esch & Andresen 1997). Due to the one-brand strategy Coke Life can profit from the widespread appeal of the master brand; Coca-Cola. Therefore each variation of Coke has the same branding, but various colours. Regarding Coke Life the colour is green (Hepburn n.d.). Thus, cost savings can be made through the rationalisation of advertising (Wegrzyn 2015).

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Details

Pages
16
Year
2015
ISBN (eBook)
9783668215955
ISBN (Book)
9783668215962
File size
813 KB
Language
English
Catalog Number
v321421
Institution / College
University of the Sunshine Coast Queensland
Grade
Tags
coca-cola life”

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Title: The marketing mix of “Coca-Cola Life”