The listed below essay is approximately Coca-Cola organization which is a drink manufacturer founded in the year 1892. The company's main product is Coca cola that has been invented in the year 1886 and was first bottled in 1894. The focus of the essay will be on developing a marketing strategy for Classic Coca-Cola or Cola for first half of 2012. This will as well discuss about the market segmentation, pricing strategy and target audience using mini and macroeconomics concepts.
The economic prediction report 2012 from several sources clearly communicates large economic expansion, less unemployment and inflation rates.
http://businomics.typepad.com/businomics_blog/2010/11/economic-forecast-2011-2012.html Coca diet coke can use substitute scenarios to lessen the production expense * In countries had been labors are extremely expensive, setting up automated making machines and reducing the labor amounts in the production series will help to reduce its cost. 2. Coco cola base viscous, thick treacle which is the raw material is imported from local units to several bottling plants which incurs transport cost, if it is produced at the same bottling plant several cost can be saved. 2. The use of LED lighting and automatic shut-down technology during rest times in all plants will help to reduce cost on Energy. 5. Production of own strength from replenishable sources like solar, wind in the bottling plant will assist you to reduce energy costs. 5. Coca cola can efficiently introduce bio degradable plant bottle which can be recycled. FAMILY PET bottles have 25% plastic and a glass bottles have got 40% reused glass. this will reduce its container manufacturing and disposal costs.
Coca diet coke, a soft soft drink is a FMCG manufacturer. Price flexibility -The chance cost of coca cola is incredibly low, in which if the selling price of the merchandise increases the demand decreased and vice versa responsively. For instance if the price of coke is decreased simply by 10%, the sales demand will increase by 20%. For that reason coca coca-cola is said to be supple as the need is responsive to change in cost. PED = %О”Qd /%О”P (PED=20/-10)
Chart 1 . 41
Profits elasticity of Coca diet coke is the response of require in variety to change of consumers income. Throughout decline in consumers income, the demand of coca cola also diminishes, as Cocaina cola is definitely not regarded as a basic need for consumers, instead the necessity for Dairy and breads increases. Alternatively when the customers income goes up the demand of coca soda increases known as 'Normal Good'. Cross price elasticity of demand:
The substitute merchandise of cocaina cola is considered Pepsi, in that way if the price of Softdrink decreases by 10%then Pepsi will have embrace its demand by10%. XED = %О”Qd Good A /%О”P Very good B (+10/+10= +1)
The free product of coke will probably be fast foods just like McDonald's burgers etc . In case the price take out increases the demand for coke will decrease.
Graph 1 . 51
The market structure of cocaina cola is considered to be Duopoly which is also a type of oligopoly. Coca diet coke and its competitor competitor Soft drink is having this kind of market structure. There is a large barrier for brand spanking new competitors to as the sector is usually dominated by simply these two firms. Also, there is certainly chances of roundabout rivalry intended for price decisions. The target market of Soft drink and Coke are concentrated more about Teen and youngsters. Pepsi came up with a strategy to sponsor an music celebration by which young adults are more fascinated. Thus they decided to become the official attract for 'The X Factor' 1 . Reacting Coca soda planned to sponsor 'American Idol' installment payments on your Also Cocaina cola has started a competition named 'Discover with Taio Cruz' 3 the challenge to get upcoming designer to collaborate with Taio Cruz. By the above case it is plainly understood that Both Cocaina cola and Pepsi are targeting precisely the same market i actually. e. Music loving Children and...