Coca Cola Marketing Planning Business Plan

  • Length: 8 pages
  • Sources: 8
  • Subject: Business - Marketing
  • Type: Business Plan
  • Paper: #45457872

Excerpt from Business Plan :

Marketing Planning for Coca-Cola

Coca Cola is the global companies operating in more than 200 countries. Headquartered in the United States, the company uses different brands to market their products across the globe. While Coca-Cola has recorded an increase in sales in the last few years, the company has faced a stiff competition with several beverages companies globally. The study develops marketing planning for Coca-Cola, and examines the internal and external environments that the company operates. The report also develops the SWOT analysis for the company, and outcome of the analysis reveals that the company is facing stiff competitions with different soft drink companies. The report recommends that the management of Coca-Cola should focus in the production of energy boost drinks because these categories of drinks have gained increased market attention among consumers. Moreover, few companies are still operating in this line of business.


Coca-Cola is an American multinational company and a leader in the production of soft drinks. Headquartered in Georgia Atlanta, Coca-Cola produces over 3,500 beverages, and 500 brands across 200 countries. Thus, Coca-Cola has been recognized internationally for the production of beverages with the ambition to grow brands. Some of the major company brands include Coca-Cola, Fanta, Sprite, Powerade and Oasis. The brand Coca- Cola was accorded a patent status in 1887 and a trademark in 1893. By 1895, the company sold their soft drink in every state in the United States. In 1889, the Coca-Cola started the franchised bottling operations, and launched its international operations in 1906. However, Coca-Cola makes their brand available to the consumer through a network of distribution and bottling operations, independent bottling wholesalers, partners, distributors, and retailers, and serves all its brand to 58 billion consumers daily. The success of the company rests on their ability to connect successfully with consumers and provide them with a variety of product options that match their tastes and lifestyles. Meanwhile, the goal of the company is to become more competitive and accelerate the growth rate to create value for the shareholders. (Eric, Siegel, Ford, et al. 1993),

Despite the market success of Coca-Cola over the years, the company has recorded a decline in the revenue and net income in the last few years. For example, the company revenue was $46.9 billion in 2013, declined to $44.3 billion at the end of the 2015 fiscal year. Similarly, net income declined from $8.6 billion in 2013 to $7.4 billion at the end of 2015 fiscal. (Morning Star, 2016). The intense competition in the last few years has made Coca-Cola facing market challenges in the competitive business environment. Thus, the company needs to develop an effective marketing planning to assist in achieving competitive market advantages.

Situation Analysis

The situation analysis is a collection of the issues that management employs to analyze the organizational capabilities, business environment and customer preference. The SWOT analysis, 5C's analysis and Porter 5 Forces are the marketing tools for the situation analysis. Thus, the study provides the situation analysis of the company internal and external environments. The internal environment consists of the situations that the company can control, however external environmental factors are the issues that are out of control of management. The outcome of the situation analysis assists the firm to establish a long-term relationship with customers.

Internal Environment Analysis

The study identifies workforce skills, financial performances, production system and business technology application as the internal environmental factors affecting Coca Coal company. (Armstrong, & Kotler, 2011).

Financial performance: Coca-Cola is 62 largest company in the world in term of revenue with more than $44.2 Billion at the end of 2015 fiscal year. In the same year, Coca has an asset of $90 billion with annual profits of $7.35 Billion. The superior assets and profitability have assisted the company to increase its net profit margin. For example, the company net margin increased from 15.43% to 16.60% from 2014 to 2015 assisting the organization to finance its business operations.

Workforce: Coca-Cola workforce and their skills are critical for business efficiencies. Moreover, the high qualified workforce is essential to design products that will match the customer preference and tastes. By 2015, Coca-Cola has a total number of 123,200, employees, which are formidable assets for the company because they assist in promoting the Coca-Cola brand, and enhance a global distribution. The strong commitment of employees also assists the company to achieve market competitive market advantages. (Westwood, 2002).

Technology Application: A business application technology determines the efficiencies of production and services of a business organization. Typically, Coca-Cola applies a unique production formula to respond to market competition and consumer demands. Moreover, the company uses a fledgling innovation to develop the customer-oriented product as well cultivating direct consumer relationships. The company also uses technology to develop the digital marketing to reach the customer globally.

Stakeholders: Stakeholders are very critical in determining the investment decision. Coca Cola's internal stakeholder is the company employee who makes important investment decisions. Over the years, Coca-Cola uses the top management to make a decision about the marketing investment.

External Environment Analysis

An analysis of the external environment is very critical in analyzing the environment that an organization operates. Coca-Cola operates in the global environment that includes advanced countries, emerging market and developing countries. Since the United States is the largest economy in the world, the economic and political situations of the United States will affect the economy of other countries.

Economic Environment: Coca-Cola operates in the global economic environment, however, largest percentages of the company operations are outside the United States. According to a report from the Economic Intelligent Unit (2016), the United States is the largest economy in the world with the growth rate of 1.6% in 2016. However, it is forecasted that the U.S. economic growth rate will rise to 2.3% in 2017 and 2018. Moreover, the private consumption growth rate will be 2.8% in 2017 and 2.3% in 2018. As being revealed in Table 1, the global economic growth rate is 2.1% in 2016, and will increase to 2.4% in 2017 and 2.5% in 2018. Since the United States represents is one of the major markets that the company operates, Coca-Cola will continue to achieve a growth rate in sales in the United States, and globally.

Table 1: Economic growth












World GDP




World Trade




Source: Economic Intelligent Unit (2016),

Political Environment: The United States has one of the peaceful and stable political environments in the world along with an effective rule of law. The country also has a great influence on the politics of another country. However, the United States is facing a global criticism of fueling crisis in some countries, and a rise in global terrorism can affect Coca Cola's business operations.

Legal Environment: Coca-Cola operates in the legal environment that is likely to affect its business operations. For example, the government makes law on taxation, and high consumer tax is likely to affect the purchasing power of the consumer, and businesses are likely to prosper in a country with low consumer taxation. The advertising regulations also affect the marketability of soft drink market. For example, the United States FDA (Food and Drug Administration) mandates the soft drink companies to warn consumers that sugary drinks cause weight gain and obesity. Moreover, Coca-Cola is being affected by other types of laws that include consumer protection laws, and OSHA (Occupational…

Sources Used in Document:


Armstrong, G. & Kotler, P. (2011). Marketing: An Introduction, (10th Edition). New York: Pearson/Prentice Hall.

Baker, M. (2008). The Strategic Marketing Plan Audit. UK. Cambridge Strategy Publications.

Coca Cola (2015). Annual Report 2015. USA.

Eric, S. Siegel, B. R. Ford, J. et al. (1993), 'The Ernst & Young Business Plan Guide' (New York: John Wiley and Sons)

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