1.0 Marketing Mix Strategies The marketing mix is a crucial tool to help understand what the product or service can offer and how to plan for a successful product offering (Martin, 2014). The elements in traditional marketing mix involve price, promotion, product and place (distribution). 1.1 Price Although Coca-Cola is already a leader in India soft drink industry, it still facing an intensely viral. Thus, Coca-Cola is always maintain the price of its product to be affordable to retain its customers (Neil Kokemuller, n.d.). Coca-Cola is so successful in India because it manages to capture the price-sensitive of customer in India by merging the market with an affordability strategy and spends a lot on advertising and manufacturing.
2.6 Tastes and customer preferences: Are important determinants and the more the product is preferred, this will shift the demand curve to the right. Less preference will shift the demand curve to the left. Consumer preferences are influenced by promoting, advertising, fashion and by observing other consumers. Coca-Cola had comprehended this right from the earliest starting point to use advertising. Substitutes (Pepsi & Coca-Cola) Increased Coca-Cola price Increases Pepsi demand Reduced Coca-Cola Reduces Pepsi
Does business growth and success always acquaint to community growth and success? Bartow J. Elmore explores this question in his book, Citizen Coke: The Making of Coka-Cola Capitalism. Elmore looks at the price that the environment and the public has paid to allow Coke to rise into the power it is in today. With operations in “over two hundred countries and selling more than 1.8 billion beverage servings per day”(7), you simply cannot deny the influence and power that Coke has. Coke is a widely successful business, but their growth has come at a cost.
The keiretsu, banks, and Japanese government with their controls, limits, and other regulations was all done for the reason of profit. The shift in lending practices in banks was by the keiretsu who placed their dependency on other capital markets while the Bank of Japan and Ministry of Finance had their focus on rising prices but ultimately only saw a rise with a steady pace. This showed that a land bubble was unexpected. The bubble was then only stabilized with the correction in laws and capital markets, with the liberalization of the Japanese economy. Therefore is the controls were in place much earlier, this could have possible prevented the
The market size of the industry was changing. Soft drink consumption has a market share of 46.8% in the soft drink industry; the total value of the soft drinks market forecast a market value of $ 367.1 billion in 2009. In addition, the soft drink industry it is lucrative in 2004 with the potential for great benefits, but there are several obstacles to overcome in order to capture market share. http://www.csbsju.edu/documents/libraries/zeigler_paper.pdf Question 2: In the microeconomics, the first thing that comes on minds when the discussion about perfect substitutes is Coca-Cola and PepsiCo. Since these two companies soda products taste the same and having almost same pricing, there is expectations that demand for both products are equal.
There is very high level of capital requirement for plant, equipment, patent, research, marketing and advertising. Coke and Pepsi tend to offset some of this cost from their bottler to increase bottler profit margin. Coke and Pepsi offset some of this cost to bottler by licensing their exclusively patent to bottler. Bottler who has exclusive right to sell their product in assign territory has very high initial cost and therefore has very low threats of new entrants. The bottler operation is partially licensed and controlled by their respective soft drink corporation which gives them advantage in their region compare to new competition.
According to Scott Smith, in the mid-1980s, the Coca-Cola Company made a decision to introduce a new product into their beverage line. They conducted a research and the showed that taste was the most important cause of the product decline in the market. So Coca-Cola decided to introduce a new product to the market that was sweeter than the original Coke drink. Almost 200,000 blind product taste tests were conducted in the United States, and more than one-half of the participants favored New Coke over both the original formula and Pepsi (Smith, 2013). Even though people favored the “New Coke”, product, they still didn’t want the company to completely discontinue the original Coke.
Coca-cola ( a product ) . Image Branding : The brand is the distinguishing name or symbol that is used to differentiate one manufacturer 's products from another . Branding, it can create a powerful image or perception in the minds of consumers and gives the business 's products it 's unique identity . Branding is one of the most important characteristic of any business, large or small , it 's important to spend the time investigating in researching, defining and building your own brand which makes you unique from others . An effective brand strategy gives you a significant edge in increasingly competitive marketing .
Administrations for moment incorporate working in aircrafts, lodgings, banks, specialists, and programming developers (Coca-Cola, 2010). Numerous business sectors comprise of both offering of administration and products for moment fast food organization offer both administration and goods (Kotler and Keller, 2009). The physical normal for Coca Cola is to concentrate on the requirements of the clients, and get into the business sector to listen or watch the clients. Coca Cola needs to prepare the world view and concentrate on its place in business sector consistently (Coca-Cola, 2010). Coca Cola is the biggest drink organization of the world, and it gives purchasers more than five hundred diverse brands.
Advertisement agencies not only have to explore the creative aspects these days but also keep in mind the company’s targets. Coca-Cola recently started share a coke campaign where customers were allowed to put their names or of friends and family right onto the bottles, effectively personalizing the product, it was a perfect example of the importance of marketing in this industry whereas PepsiCo focuses on relativity to the product, they mostly sign up celebrities and famous personalities so that the customers would have a comfort level in choosing the product. In an industry this big, things just wouldn’t work unless they take the help of ICT; there has always been interdependence between both industries. The technology makes the work easier of conveying the message which was the sole point of hiring an agency. The internet and mobile has helped a lot in spreading the idea even faster.