Bargaining Power Of Coca Cola

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Question 1

The concept of societal orientation implies that marketers should try and market in a way that is sustainable and enriching for the long-term welfare of society. The four issues marketers should consider are: environmentalism, consumer rights, ethics and social responsibility. (Johan Strydom, 2014)

• Functional benefits – Benefits of using products that can be perceived by touch, such as the screen size of a new iPhone.
• Emotional benefits – These are benefits that make customers feel a sense of achievement or excitement. Example: If a customer buys a new perfume, he/she may feel more attractive.
• Image benefits – These benefits are those that give customers social status and a higher self-image by using brands that
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Coke’s major suppliers are suppliers of regular ingredients for their drinks. These types of suppliers generally sell the same commodities and therefore have very little bargaining power. Bargaining power of buyers The bargaining power of buyers is influenced by the number of buyers compared to the number of suppliers. If buyers can drive the suppliers’ prices down, they have high bargaining power. Coca-Cola’s major buyers are large super-markets and restaurants. They have high bargaining power because they buy Coca-Cola in bulk and can therefore push for lower prices.
Threat of substitute products The threat of substitute products is determined by the number of suppliers offering the same or a similar product. In Coca-Cola’s case the threat of substitute products is very high as there are many substitutes for coke.
Intensity of rivalry among competitors The intensity of rivalry is determined by the number of businesses selling the same or similar products in a market and the amount of pressure they put on one another. Coca-Cola’s main competitor is PepsiCo and the intensity of their rivalry is very
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They authorise the final transactions.
• Gatekeepers – Have control over which information gets to the main decision maker. They have enough influence over the main decision maker that their opinion may make or break a sale.

Question 4

4.1) Market research is important for a number of reasons, but mainly to understand potential as well as current consumers in this very competitive world. It can help a business keep tabs on their competitors in order to effectively develop business strategies. Market research is key if a business wants to make cost effective moves. 4.2)
Primary Data Secondary data
Data must be generated through first hand research. Data already exists and was either previously produced by the business or by an outside source.
Primary data takes more time and is relatively expensive to collect, but the data is usually more relevant to the business. Secondary data is cheaper and easier to obtain, but may be less reliable (or relevant) than primary data.

Formulate the research problem and objectives – In this step the marketing manager must precisely identify the true problem that the organisation is faced with, determine what needs to be achieved and decide on the type of research that must be

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