Abstract
This marketing plan for Coca- Cola Ghana has been created to create a new strategic direction for the company in Ghana in terms of localizing operations and communications.
With a firm grip on the Ghana market the intent is to further establish the business in this emerging region which has loads of potential for growth.
Even though Coke has a considerable operational presence the firm has experienced greater than anticipated low demand for its products, and research as shown that the target market of young and adult consumers are more geared towards health based drinks.
With the advent of a digital technological age, Coke can create a connect and also explore more opportunities for online sales and an innovative presence digitally.
The use of marketing communication and tactical strategies will play a pivotal role in achieving the aforesaid.
Introduction
Organizations which are successful are in tune with the needs and wants of the industry and the consumers they cater. A comprehensive investigation of opportunities and threat both from internal and external viewpoint in order to meet the organizational aims and objectives in an effectual and profitable manner is the key.
The marketing plan is the key to come to terms with the needs and wants of the organization in the most effective manner. Thus, the marketing strategy is a very important pillar to gain competitive advantage and therefore, in this cluttered globalized economy it is crucial to think out of the box from time to time to realize the business challenges in view of the business objectives.
The Coca-Cola (Coke) Company like any other organization operates in a tough environment in terms of competition and issues that have hampered the sector in terms of health aspects which have been raised repeatedly.
The Company
As an organization Coca Cola is one of the biggest marketer, manufacturer, and distributor of nonalcoholic beverage, syrups and concentrates in the sector and globally. Coke is the primary brand and the extension of the brand includes, Minute Maid, Fanta, Sprite, Coke Light, Scheweppes and Krest and many other brands in the water and crisps category.
Coca-Cola Light, Fanta, Sprite, Scheweppes, Krest, Bon Aqua water, Burn energy drinks and Schweppes malt tname a few (Ghana Money, 2012).
Some brands are also obtained through acquisitions, case in point being Dasani water. Headquartered in Atalanta, Geogia, and the operational capability of Coke spans in over 200 countries.
This coverage on a global level is a primary indicator of the brand recognition that Coke enjoys and the emotive connect that they were able to create and sustain with the consumers on a consistent basis and is recognized as one the most valuable brand globally.
The Country
Coke as a company is a leading entity in investing in emerging markets with regards to the opportunities that the regions bring in terms of business and expanding the global foot print of the organization.
Another major reason for Coke expanding in emerging markets is with regards to Coke’s commitment to have a hand in building sustainable societies and communities all over the world, especially in the emerging markets.
The chosen emerging market is Ghana. Located in West Africa, Ghana is one market which has all the potential for growth both in terms of business and also in terms of Coke’s commitment in helping in developing sustainable communities.
As stated by Mr. Reiner Becker who is the General Manager of Coca-Cola Equatorial Africa Limited (Ghana Money, 2012), the scope is tremendous in terms of growth and products are tailored as per the consumers of the region.
The aim is to continue to expand the product line to become a total non-alcoholic beverage business in the region.
One of the biggest reason as to why Coke is interested in the Ghana market is its global ambition to empower five million women by 2020 using its supply chain. In Ghana 90% of the micro-distributors are women.
Besides the focus of Coke in Ghana is also on youth programs, access to safe and clean water and lend a hand in improving the health and education sector.
Marketing Challenge
In view of the analysis of Coke as an organization in Ghana the scenario is feasible as Ghana is a leading market in terms of sales and distribution of Coke products.
Coke has a positive position in the minds of the consumers; however, this aspect cannot be solely responsible in driving sales and with the current consumer having an array of choice to pick from it is imperative that the operational aspects are innovated both in terms of products and services and marketing communication (Modern Ghana, 2008).
Although the majority of Ghanaian market is owned by Coke, thus the author will present a marketing plan with regards to the implementation of the marketing strategy of Coke in view of localizing operations for Ghana market.
The primary aspect of a marketing plan of an entity helps in inducing trial in the target market by leveraging the brand’s key assets in terms of its offering both in tangible and non-tangible sense and the communication helps in localizing the product in an effective manner.
The solution in terms of marketing strategies will be based on the scan of the external and internal environment for the viability of Coke’s success and suitability plans for Coke in terms of marketing strategy.
SWOT Analysis:
For starters in the marketing plan SWOT analysis is done to establish the internal and external analysis of Coke, besides, Coke can make alterations to the business for future through the pointers of SWOT.
Strength:
The brand equity is very high for Coke and it is thus easy for the company to launch in an emerging market and localize the operations in view of the available resources. The market share is the biggest for Coke globally. Backed by a highly vivid communication campaign the brand is connected with the consumer’s emotive level on a constant basis.
The supply chain and the distribution network are very extensive which helps in reaching places where other brands fail to reach. The bargaining power is very high over suppliers and in view of the steps taken in Ghana as discussed in the Country section, Coke is an organization highly focused on corporate social responsibility.
Weakness:
The product is highly criticized in view of the high carbonated drinks; this has brought negative word of mouth and PR for Coke globally in relation to medical issues such as obesity. Although the product lines for Coke are there the amount of revenues do not justify the investment.
With a vast empire in over 200 countries the debt level is high mostly due to acquisitions made by Coke from a strategic perspective.
Opportunities:
The main opportunity which is also a weakness for Coke is the expected growth of the bottled water consumption, although this is an opportunity in developed societies such as US and UK, emerging markets such as Ghana where there is water scarcity may not be a market.
Focus on the latest trend of health and develop products and drinks which focused directly on the segment as developed in Ghana which was sugar free 100% (Modern Ghana, 2008).
The use of carbonated drinks is still high in emerging markets and the focus of growth is there to achieve. Also to keep ahead the focus should also be on acquisitions in terms of targeting new market segments with new product line. Ghana one of the fastest growing market in the Western African region.
Threats:
The primary threat that Coke is affronted with is in the form of water scarcity and health fad. Also, competition given by its main competitor Pepsi is also a threat in terms of eating up the revenues and also capturing target segments.
PEST Analysis
A PEST Analysis will be done for Coke in order to gauge the business environment in which the company is operating in Ghana.
Political: Coke operates very closely with the Ghana government in terms of operations and manufacturing and follows the rules and regulation as mentioned. Some of the factors that are influencing Coca-Cola's Operations in Ghana are the primary aim is to continue to expand the product line to become a total non-alcoholic beverage business in the region.
One of the biggest reason as to why Coke is interested in the Ghana market is its global ambition to empower five million women by 2020 using its supply chain. In Ghana 90% of the micro-distributors are women.
Coke has been focusing on youth programs, access to safe and clean water and lend the government a hand in improving the health and education sector which is in tune with the needs and wants of the local government.
Cokes capability to penetrate emerging and developing markets is based on forming effective strategic business alliances with local bottlers, and to augment their production facilities, distribution networks etc.
Economic: From an economic perspective since Ghana is an emerging market, Coke has contributed to the socio economic development since its operations started in 1956. Jobs created through supply chain, jobs in Coke for graduates and supporting small business which distribute Coke all over Ghana.
Social: From a social perspective even in Ghana healthy lifestyle aspect is exercised however not on the same level as in developed countries.
Carbonated drinks are part and parcel of daily lives of people. The new fad of healthy drink options is also significant in terms of Coke operational aspect, with carbonated drinks being the core business, Coke has to keep reintroducing new healthy drinks to keep up with the new trend and segment.
Technological: To be able to be successful the implementation of technology, and improving processes are the fundamentals, at Coca-Cola the improvement is ongoing. Coke has pledged to improve by innovating in terms of product features and new products.
Utilization of Social media is also done by Coke to target young target market in terms of brad affinity Coca- Cola Gh (2012).
Given that the technology is advancing incessantly there has been access of new machinery gear all the time. Coca-Cola's production volume has increased sharply compared to few years ago in view of these technological advances.
Market Segmentation
Coke always takes care of market segmentation in view of the fact that emerging markets and developed markets have different preferences when it comes to carbonated drinks. According to M. McDonald and I. Dunbar (2012) segmentation is the foundation of thriving marketing plans. The challenge that Coke faces is to preserve a presence in the forefront off a competitive drinks environment in emerging markets like Ghana in view of the globalized economy and the options available to consumers.
Micro segmentation is important for Coke; in view of the fact that every segment has a different aspiration to drink Coke and its other drinks. It is also essential to understand that customer loyalty is a very important element for Coke, nevertheless attaining brand loyalty may be delicate, but with regards to Ghana market it is strong.
The segmentation for Coke Ghana can be categorized as follows:
- Independent Women
- Professional Men
- Adults (Men and Women 50+)
The above mentioned segment in essence accentuates the fact that Coke in emerging markets is liked by all and sundry as opposed to developed markets segmentation.
Marketing Strategy
The marketing strategy for Coke Ghana is selected by the author is with regards to the Coke’s strong position in the Ghana market. With a strong corporate social factor influencing the consumers through all segments and sectors.
The need of the hour is launch a marketing strategy which not only reinforce but also present Coke in a new light to consumers in Ghana with regards to a brand of a new age.
The digital space will be utilized as the primary tool for the marketing strategy and with tactical strategies implemented in lieu with the consumer’s needs and wants.
The strategy is focused on innovation and since the digital strategy is something which is taking precedence over other marketing tools, Coke Ghana will gain a lot from its implementation in terms of localizing the brand permanently.
With the website as the main tool, face book, twitter, LinkedIn, Blogs will be utilized to create a buzz amongst al the market segments.
- Product – With respect to the new digital strategy should offset a trend in terms of marketing active product line with and also create new product line which exclusively focuses on the health aspect in terms of activating the products through digital space. Already, existing strategy for product in Ghana is focused on product innovation which has succeeded stupendously in the market, Schweppes Malt is an example which helped increase the market share in Ghana by 20% (African Business Review, 2011)
- Price – There won’t be any changes in the pricing strategy in view of the fact that consumers of drinks are very particular about the price of their drinks and any changes without any rhyme and reason severally dents the brands perception and chances are that the consumer may try competitor product.
- Place (Distribution) – The distribution set up is in total control of Coke in Ghana and as stated in the report before, the supply chain is also utilized as an aspect to improve the lives of women, youth and small businesses. For Coke in terms of distribution strategy the sky is the limit.
- Promotion – The promotion will be focused on thanking the consumers for their support as done before by the campaign Coca-Cola Splash Promotion, in which the consumers were rewarded with cash prizes, free soft drinks, and branded mufflers of Coke for the utilization of Cokes products. The digital space will be utilized to create the same effect with regards to thanking consumers and sharing happiness with them in an effective manner.
Conclusion
Coke as brand is in essence competing with itself, in spite of the tremendous challenges that Coke is facing amidst the global players and environment for carbonated drinks sector. Coke as a business entity has created value for the carbonated drinks sector and is at the forefront of innovating products and corporate social responsibility for a better world in emerging markets like Ghana.
Reference
African Business Review (2011). Coca-Cola gets fizzy in Ghana. Retrieved from http://www.africanbusinessreview.co.za/reports/coca-cola-bottling-company-of-ghana
Coca-Cola Gh (2012). http://www.coca-cola.com.gh/pages/landing/index.html
Ghana Money (2012). Coca-Cola to Capitalize On Growth Opportunities in Ghana. Retrieved from http://news.moneygh.com/pages/industrial/201209/766.php
Modern Ghana (2008). Coca-Cola Boss Hails Ghanaian Market. Retrieved from
http://www.modernghana.com/news/154721/1/coca-cola-boss-hails-ghanaian-market.html
Modern Ghana (2012). Coca-Cola Boss Hails Ghanaian Market. Retrieved from
http://www.modernghana.com/news/154721/1/coca-cola-boss-hails-ghanaian-market.html
M. McDonald and I. Dunbar (2012). Market Segmentation: How to Do It and How to Profit from It. John Wiley & Sons Ltd, West Sussex, U. K.
