Marketing Plan for Coca-Cola

INTRODUCTION OF COCA-COLA CRISP IN THE NATURAL AND FUNCTIONAL BEVERAGE MARKET

EXECUTIVE SUMMARY

The food and beverage industry is significantly driven by the consumer behavior, so its innovations aim to satisfy the changing consumer expectations and demands. Unites States is one of the major markets for non-alcoholic drinks however, recently the demand for non-alcoholic drinks has decreased considerably, especially among the young generation. Increasing awareness about obesity is also one of the major factors affecting the demand for non-alcoholic drinks in North America. The major manufacturers in the non-alcoholic drinks market have introduced zero-sugar and diet drinks which meet the consumers' demands of reduced calories to cater with changing consumer requirements.^[1] 

The United States Liquid refreshment beverage market growth was the strongest in 2015. Carbonated soft drinks remained the biggest category in the industry, but it continues to lose both volume and market share. Volume slipped by 1.5% from 12.8 billion gallons in 2014 to 12.6 billion gallons in 2015, which lowered the market share to less than 40%. Carbonated soft drinks accounted for five of the 10 biggest beverage trademarks during 2015, with Coca-Cola and Pepsi-Cola retaining their usual first and second positions, but only one of the leading brands, Sprite, managed to grow during the year.^[2] Coca-Cola, PepsiCo Inc. and Dr. Pepper Snapple Group experienced declined sales volumes because of the increase of consumers’ preference for non-sugary drinks. Some municipal governments are turning against soda, too. In June, Philadelphia became the first major US city to pass a tax on diet and sugar-added beverages. Soda taxes are on the ballot this November in San Francisco and Oakland, California, and Boulder, Colorado.^[3]

The sales of Bottled water are on rise due to its harmless contents, added nutrients, zero calorie and hydration characteristics. It is the second-largest liquid refreshment beverage category which recorded 7.6% volume growth in the United States in 2015. The growth has substantially increased from 7.3% in 2014 and 4.7% in 2013.^[4]

Niche categories such as Ready-to-Drink (RTD) coffees and teas, and energy drinks are outperforming the sales of traditional soda and juice drinks. RTD coffee and energy drinks saw a volume increase of 16.5% and 9.8% respectively in 2015. The sports beverages remained the sixth largest category in the year.^[5] 

Coca-Cola is one of the leading companies in the industry but over the past few years it has seen a decline in its soda sales. Although the volumes of Minute Maid and Powerade sports drink increased by 1% but soda volumes decreased by 2% in America. The non-carbonated category increased by 3%, mainly by bottled water.^[6] 

We can see there is a shift in consumer’s choice towards non-carbonated, non-sugary and hydrating beverages. There is a need to focus on cutting sugars in the existing drinks and to launch a new product that will be the solution to the rising demands and choices. Coca-Cola’s volumes rely about 70% on the soda, portfolio mix of the company needs to shift towards non-carbonated beverages. Thus, our marketing proposal will focus on the introduction of a new product COCA-COLA CRISP; which will be a naturally sugared (low), non-carbonated, natural fruit drink with essential hydrating nutrients. The marketing strategy targets and forecasts sales growth of about 4% over the next 3 years in the Unites States beverage market.

COMPANY INTRODUCTION

The Coca-Cola company is an American multinational corporation, headquartered in Atlanta, Georgia. It is a beverage company that owns or licenses and markets non-alcoholic beverage brands including sparkling and still beverages such as waters, juices and juice drinks, ready-to-drink teas and coffees, and energy and sports drinks. It also markets, manufactures and sells beverage concentrates and syrups. The primary non-alcoholic beverage brands include Coca-Cola, Diet Coke, Fanta and Sprite.^[7] 

It operates globally with its bottling partners in more than 200 countries and produces more than 300 beverage brands. It’s 2020 vision is all about ‘getting ready for tomorrow today’. The company’s mission is refresh the world, inspire moments of optimism and happiness and create value to make a difference.^[8]

Focus on the Market^[9]

• Focus on needs of our consumers, customers and franchise partners
• Observe the market and learn
• Possess a world view
• Focus on execution in the marketplace every day
• Be insatiably curious

Coca-Cola’s essential product is the concentrate or the syrup which is sold to various licensed Coca-Cola bottling companies around the world. These bottling companies use the concentrates to make the final product in different sized bottles and cans as we see in the market. The bottlers then sell, distribute and merchandise Coca-Cola to retailers and outlets such as stores and vending machines. The company also owns the following brands: Coca-Cola Zero, Minute Maid, Minute Maid Pulpy, Dasani, Aquarius, Powerade, Schweppes, Georgia, Simply, Glaceau Vitamin Water, Del Valle, I LOHAS and Ayataka.^[10]

Major products

Coca-Cola (8 fl oz)                    Diet-Coke (7.5 fl oz)                             Coca-Cola ZERO(7.5 fl oz)       

[pic 1]                          [pic 2]                                 [pic 3]

 Total Carbs: 26g                             Total Carbs:0g                                      Total Carbs:0g

 Sugars: 26g                                     Sugars:0g                                              Sugars:0g

 Caffeine content: 23mg                  Caffeine content:28mg                         Caffeine content:21mg

 Phosphoric acid                              Phosphoric acid                                     Phosphoric acid

 Carbonated water & more              Carbonated water                                  Carbonated water

Coca-Cola LIFE (7.5 fl oz)                              SPRITE (12 fl oz)                                                FANTA (7.5 fl oz)

[pic 4]                    [pic 5]                                             [pic 6]

Total Carbs:16g                              Total Carbs:38g                                    Total Carbs:28g

...