Posted: May 22nd, 2015

Coca-Cola Singapore Marketing Plan

Executive Summary

Coca-Cola Singapore mission is ‘‘everything we do is inspired by our enduring mission: To refresh the world…in body, mind, and spirit, to inspire moments of optimism through… our strong brands and actions and to create value and make difference… everywhere we engage’’ (Coca-Cola 2012). The major objective of the company is ‘‘to foster an open and inclusive environment where the workplace rights our people are respected and upheld in an open, safe and healthy environment’’. The core values of the company are leadership, collaboration, integrity, accountability, diversity and quality.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Paper outline

1. Introduction
2. SWOT analysis

• Marketing mix

1. Contingency plan, implementation, evaluation and Control
2. Recommendations
3. Conclusion

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Coca-Cola Singapore Marketing Plan

Introduction

Coca-Cola Singapore Company is a soft drink company that engages in the manufacture, distribution and marketing of carbonated non-alcoholic drinks in Singapore. The Company is part of the global giant Coca-Cola Company, headquartered in Atlanta United States of America. The company produces a wide variety of soft drinks that are well known across the world. These products include beverages such as Coke, Sprite and Fanta. Others are diet and light beverages, water, and juice drinks, teas and sports drinks (Coca-Cola 2012).

Coca-Cola Singapore has a long background dating back to ninetieth century. Two printing entrepreneurs were behind the entry of Coca-Cola Company into Singapore make. John Fraser and David Neave started Singapore Straits Aerated Company which was the first ever bottled water producer in Asia. After many years in operation, the company became the first Coca-Cola franchiser in Asia after when it started to produce and bottle Coca-Cola. In 1992, a joint venture between the two companies was signed that established F&N Coca-Cola in Indochina and South West Asia in which Coca-Cola Company acquired twenty-five percent shareholding. This led rapid expansion of the new entity into new markets in the region (Coca-Cola 2012).

In late 1990s, the company established its first ever subsidiary that is F&N Coca-Cola (Singapore) Pte Limited in Tuas Singapore that handled business development and efficiency management in the beverage industry. Coca-Cola Company finally acquired full ownership of F&N Coca-Cola (Singapore) Pte Limited when they bought seventy-five percent shares that Fraser and Neave held in the company in the year 1999. The company name was also changed from F&N Coca-Cola (Singapore) Pte Limited to Coca-Cola Singapore Beverages Pte Limited. This company continues to produce and market Coca-Cola Company beverage products in Singapore (Coca-Cola, 2012).

SWOT Analysis

SWOT analysis is a hugely valuable tool in decision making for many organizations. This tool is particularly relevant in planning, strategic planning, competitor evaluation, marketing and product development and research (Ferrell & Hartline, 2011). It offers a company an opportunity to understand its strength and weaknesses at the same time identifying opportunities open for it and the potential threat that the company might face (Ferrell & Hartline, 2011). Factors internal to the company are classified as either Strength or weaknesses and the external factors are classified as opportunities or weaknesses. SWOT analysis is essential for providing useful information that enables the company to formulate suitable strategies to enable it remain competitive in the market place (Ferrell & Hartline, 2011).

A company needs to conduct internal environment scan to know its strength and weaknesses. This should be followed by scanning the external environment to identify market opportunities and threats before drawing its market plan. By understanding the strength, the company can uncover and exploit the available opportunities in market (Ferrell & Hartline, 2011). Analyzing of the company weaknesses, on the other hand, is essential in the elimination of the threats that can affect the implementation of the marketing plan. Strength analysis involves looking at what the company does best, access to strategic, low cost resources and the product quality and uniqueness. The strengths are analyzed from an internal and external context, that is, look at the customer and the general market in relation to the competitor in the same market (Ferrell & Hartline, 2011).

Weaknesses analysis should be based on what should be improved, what customers say are the company weaknesses are and causes of low sales. In the analysis of opportunities, company should focus on positive market trends and abundant opportunities that the company can capitalize to gain or improve or maintain its market share or leadership. Factors in the external environment that may point out available opportunities are technological changes, government policy changes, demographic and lifestyle changes (Ferrell & Hartline, 2011). Changes in the external environment also presents threats to the company hence analysis is required to assess the potential threat that the company is likely to encounters. Threats may be the form of new regulations by the government, new competitor products and substitutes, changes in consumer tastes and preferences and also technological changes (Ferrell & Hartline, 2011).

Coca-Cola is a tremendously popular brand in Singapore and the world at large. The branding of Coca-Cola products in Singapore is recognized in the market. This makes the Coca- Cola extremely incomparable to its competitors in the beverage industry in Singapore today. Coca-Cola brand has overwhelmingly grown for so many years. Therefore, the company has gained social popularity among Singapore population. People not only buy Coca-Cola products because of their superior quality but also to feel that they are part of something big and unifying. Regardless of all these the brand is bound to continue growing in the infinitive future. Furthermore, Coca-Cola offers wide categories of non-alcoholic beverages. This has enabled bit to consolidate its customer base throughout the country hence achieving competitive edge above it market rivals (Coca-Cola, 2012).

Coca-Cola Singapore also enjoys a robust distribution networks with direct store delivery system that ensure a steady flow of its products across the country. The ability of the company to sustain profitable business expansion which has contributed to strong financial performance is another key strength in Singapore today. The company’s revenues have increased over the years is strongly contributing to its strong market performance in the beverage industry in Singapore (Soft Drinks Industry Profile, 2011). The company also enjoys market leadership in the market. The company controls twenty-four percent of the total market share as compared to twenty percent share controlled by its closed rival PepsiCo (Soft Drinks Industry Profile, 2011). Its market leadership considerably facilitates Coca-Cola to penetrate markets thus sustaining its customer base.

Despite numerous strengths that Coca-Cola enjoys, they do also have their own weaknesses. One of the major setbacks to Coca-Cola Singapore is the negative publicity that the products are unsafe for human consumption. The recent global accusation that the Company products contain cancer causing chemicals could adversely affect the strong company image and the demand for its products (Coca-Cola, 2012). With health issues becoming a key concern by customers, some of the Coca-Cola products are likely to lose customers in Singapore market.

Coca-Cola Singapore has been exploiting every possible opportunity across the country in the recent periods. The ever expanding water bottling segment in Singapore presents a significant opportunity for increased investment by the company. With the increasing customer health consciousness, diversification into organic juices and other health drinks offers another opportunity for the company. Asia is ranked third in the world in consumption of organic food and it is expected to rapidly increasing in the future. Coca-Cola, being the leading company in the soft drinks manufacturing, in Singapore and the region, is better placed to serve the growing market segment (Soft Drinks Industry Profile, 2011). The strong brand recognition in the industry as compared to its closest rival is another opportunity for the company which it should strongly work on. This is an opportunity Coca-Cola to make the gap wider to lock out the competitors completely.

The major threat to Coca-Cola Singapore is the intense competition from its closest rivals. PepsiCo and Groupe Danone are the main competitors in the market (Soft Drinks Industry Profile, 2011). These companies control a combined twenty-six percent of the total market share. The company also faces intense non-alcoholic substitute products such as juices, traditional tea and coffee entrance into the market (Soft Drinks Industry Profile, 2011). These products are potential threats that the company may face in the future. The recent health issues regarding the safety of Coca-Cola products may prompt new market entrants who may target niches that may ultimately have small-scale effect on the Coca-Cola. The new entrants may enter into the market with products stressing on customer health benefits (Soft Drinks Industry Profile, 2011).

Marketing mix

According to Lamb, Hair and McDaniel (2009), marketing strategy require a sound marketing mix. Marketing mix involves blending product, place promotion and pricing strategies to achieve the market target goals at the same time satisfying consumers (Lamb, Hair & McDaniel, 2009). Marketing mix is a very important tool in the marketing of a company’s products. The major objective of any company is to manufacture a product and make it available to customer at a reasonable price.

Marketing mix involves controlling product, price place and promotions of the products so as the target market is fully satisfied by the company. The company creates a mix of the right products that satisfy customer needs. The company ensures that the manufactured products are of top quality with superior features as compared to its competitors in the marketplace. The company ensures that the product is offered in the market at the right price. Product pricing is essential to ensure that the company generates revenues from the sale at the same time not exploiting the customer. According to Lamb, Hair and McDaniel (2009), the process involves researching for consumer opinions regarding product prices and how much they are willing to pay for them.

The company also ensures that the product is sold at the right place at the right time. This requires timely distribution of products to reach target market in time and when they are required. The company has to decide whether to distribute to wholesalers or directly to the retailers or both (Lamb, Hair and McDaniel). Promotion of the product is then essential to let customer know about the availability of the product in the market. The consumers need to be informed about product features and benefits that they are going to gain from the consumption of the product. Lamb, Hair and McDaniel (2009) point out that promotion is vital in providing relevant information regarding the product to enable the consumers make a purchase-decision. Promotion comprise of advertising, personal selling, sales promotion, direct marketing, online communication and public relations (Lamb, Hair & McDaniel, 2009).

Coca-Cola Singapore produces a wide range of soft drinks today. Refreshment brand produced by the company are: Coca-Cola, Sprite, Schweppes, Fanta, A&W and Coke. Other product category produced by the company is zero calorie beverages such as Coca-Cola light and Coke Zero. Rejuvenating beverages include Heaven and Earth tea. The company also produces juice drinks like Qoo and Minute Maid and bottles Dasani water.

Coca-Cola Singapore partners with other companies in the manufacture and bottling of its products. Coca-Cola sells concentrates and syrups to these companies for bottling and canning. The product is manufactured, canned and packaged in cans, glass and plastic bottles. The company sells the concentrates and syrup to ensure quality standards are adhered. Furthermore, through its quality team, the company inspects the process of bottling and canning to ensure food safety standards are strictly followed by the bottling companies (Soft Drinks Industry Profile, 2011).

The finished products are sold to authorized bottlers or distributors, wholesalers or directly to the retailers. For the juices and bottled water, the distribution is direct to wholesalers and retailers by Coca-Cola distribution partners. The company has a wide distribution, storage and warehousing network throughout the country to ensure reliable supply of its products in the market.

The major wholesalers of Coca-Cola products are regional deports that warehouse the products before selling to the retailers for the final sale to consumers. Supermarkets, hotels, restaurants, night clubs and bars are the leading retail centers for the Coca-Cola products in Singapore. The company provides retailers and wholesalers with fridges and freezers for preservation of the products. Additionally, the company also provides advertising labels to the shops.

Pricing decisions are made by the marketing department of the company. The company carries out market research with a view of getting customer opinions regarding the pricing of its products. Coca-Cola pricing is extremely consumer responsive and reasonable enough to earn the company profits. Price lists are provided to ensure that the final prices are not exploitative. Retailers and wholesalers are required to fix the prices within the recommended prices provided by the company. From time to time, discounts on large purchases are offered to the authorized stockiest and retailers to encourage sales movement.

Coca-Cola Company recognizes the importance of promotion in the marketing of its products. The company runs intensive promotional campaigns to reach out to as many customers as possible. Advertising is the greatest promotion campaign that the company uses to promote its products. The company has intensively advertised several brands on television, radio and newspaper. The widely advertised brands are been Coke, Fanta and Sprite. Zero calorie products have also been advertised to target the health conscious consumers. Other forms of promotion strategies that have been adopted by the company over the years are online communication, public relations and sometimes direct marketing.

Contingency plan, implementation, evaluation and control

Contingency planning according to Childs and Rohner (2002) refers to a plan that is devised for an outcome other than the expected one. This plan is of very important for a company in cases where the unexpected outcomes suddenly happen. The unexpected outcomes may be catastrophic to the company hence the company needs to plan for such eventualities. Therefore, companies need to have procedures articulating how such situations are going to be mitigated (Childs & Rohner, 2002).

Coca- Cola Singapore has clear contingency plan that identify the critical business assets that need to be protected in cases of unexpected outcomes. The company has alternative ways of production in cases whereby the bottling and canning partners abruptly stops the bottling of its products. The company has established partner network that can work against such an eventuality. This ensures that, in cases of such happening, it will be extremely hard for the company to lose a lot. In a situation, where the marketing strategy fails to deliver as expected Coca-Cola looks at the best possible measures such as product withdrawal from the market like the recent withdrawal of the drinks that were alleged to contain cancer causing chemicals. Furthermore, the company was quick to launch an in-depth analysis of its products and assured the customers of their safety through mass media (Coca-Cola, 2012).

Market plan implementation is a gradual process of putting the drawn plan in action. The team implementatiing the strategy should know the goals of the plan before implementation can begin (Dibb, Simkin & Bradley 2001). This is followed by delegation of duties and responsibilities necessary in the successful implementation of the plan. The plan is then put in the course, and progress checks done at intervals to identify how smooth the plan is doing and report any challenges. Improvements are done from regularly to focus on achieving the intended results. Results are then evident at the end (Dibb, Simkin & Bradley 2001).

Evaluation and control measures need to be implemented to measure the effectiveness of the strategy over time (Masterman & Wood, 2006). Evaluation and control of the strategy is necessary to track the performance and alter existing strategies where necessary to keep it on track. Evaluation is also beneficial in identifying new opportunities, and potential threats as the strategy are operational (Masterman & Wood, 2006).

Coca-Cola Company has formulated efficiency, and strategic evaluation and control processes to ensure that its marketing and sales efforts are achieved. The evaluation and control of the company involves looking at strategy impact and the market situations that may require localized reactions in the form of advertisements, sales promotion and distribution drives. Strategic control by the company ensures that the overall and long-term marketing plan is line with its strength and weaknesses (Coca-Cola, 2012). The company compares its results to the PepsiCo and Groupe Danone, and the general beverage industry results to check whether the company is achieving the expected results. The company also carries out marketing audit to make sure that the marketing plan emphasizes its strength in a way that is compatible to changes in the market and consumer tastes and preferences (Coca-Cola, 2012).

Recommendations

In order to maintain its market leadership in the country, the company must continuously work marketing strategies that will not only ensure future growth of the company but also lead to sustainability. The company is faced by strong competition from PepsiCo and need to be aware of this when coming up with marketing plans. It is due to the above points that three main strategies are recommended for Coca-Cola Company.

Diversification into production of organic fruit juices – The demand of organic foods has been on the rise in the recent years. There has been a gradual shift in consumer tastes and preferences across in Singapore and the world at large. Many people are shifting from consumption of the carbonated drinks into more organic foods and juices. Additionally, the recent findings that many carbonated soft drinks across the world are unsafe for human consumption further pushes down the demand for beverage in the Singapore market. This comes as an opportunity for Coca-Cola Singapore to diversify its production to include the manufacture of organic foods and juices to meet the promising future demand for organic food.

The company should also consider a pricing strategy. The company should give more incentives to the middlemen and retailers by giving free samples and empty bottles. This will motivate the retailers and middle men to push the sale of products in the market. Also, the company needs emphasize more on price changes with seasons. The company needs to lower it prices considerable during low season so as to push sales and adjust prices up during the peak seasons to increase profitability.

The Company at the same time should pursue promotional strategy for low selling products. The company manufactures wide range products. Despite the facts that Coca-Cola is popular and has a strong brand name, some of its new product is not popularly known in the market. Therefore, the company should engage more in promotional activities to ensure the new and unpopular brands sell. This can be done through intensive advertisements and sales promotion to create awareness for the new and less popular brands.

Conclusion

Marketing plan is an essential tool in monitoring and tracking of marketing strategies. Market plan is helpful for managers to measure the performance of the company’s products in the market and formulation of future policies necessary in maintaining its market share. The company should carry out comprehensive market environment analysis to ascertain the available opportunities that can be useful in the formulation of marketing strategies.