Executive Summary
This paper focus on marketing strategy, which is an organizational integrated pattern of decisions that specify its significant choices regarding markets to serve and market segments to target. We will launch a new product for Coca-Cola referred to as Buxpon in the line of water. Coca-Cola is the leading world food and beverage company, which produces a variety of products. The new product will address the social trends and changing purchasing behavior of consumers based on the health and lifestyle. The report will focus on the situational analysis, marketing mix, brand positioning and segmentation among others.
Introduction
Marketing strategy is a is an organizational integrated pattern of decisions that specify its significant choices regarding markets to serve and market segments to target (Rogers, 2001, PP. 125). Lack of proper marketing strategies ends up not sustaining the new product in the market. Several researches indicate that products that are new can thrive if the company employ proper marketing strategy. The paper focuses on Coca-Cola, which is the leading beverage company. Since, Coca-Cola operates via products divisions; we will launch a new product under the water category. The new product will be referred to as Buxpon. Since several customers are looking to adopt healthier lifestyles, the Buxpon will contain no sugar, which will be healthy for most people, especially athletes, diabetics and children. Similarly, the report will focus on the situational analysis, marketing mix, brand positioning and segmentation among others.
Methodology
The marketing strategy adopted for this report will utilize a qualitative methodology in order to facilitate marketing strategy. The qualitative study allows researchers to penetrate the internal logic of the research subjects, interpreting the subjects and observation of the research subject among others (Neil, 2012, PP. 103). This study focuses on launching a product for Coca-Cola company, which has captured the global market. This is so because the company is determined to capture social changes and purchasing behavior of consumers by producing quality products that meet customer needs.
The study will involve setting up of small focus groups of consumers who will express their ideas and opinions about their needs and views on the new product. Similarly, these consumers will talk about their lifestyle and dietary habits, which will enable the formulation of marketing strategies (Tammo, 2000, PP.83). The study will use the quantitative research by interviewing about 1000 people via telephone and receive their views via questionnaires. The use of these research methods will help to gain a clear idea of consumer opinions and trends (Schnaars, 2000. PP. 78).
Analysis
Situational analysis
The main step in marketing strategies is to examine the business, its products and brands. This comprises of assessment of the new product position and the state of the market ( Siegel & Lotenberg, 2007, PP. 98). The new product Buxpon requires knowing what its customer want and what competitor products exist. Similarly, the product will target the range of consumers including adults and children. The new product will use SHOT analysis to help assess the market. This considers a detailed research of the internal strength and weakness of the business, as well as external opportunities and threats in the market (Dobkin, 2008, PP. 126). Similarly, it will use PESTLE that will provide the context for the business based on the external environment.
SWOT analysis
Coca-Cola is a world producer of food and beverage company, this will gave the new product a strong brand recognition in the market. Coca-Cola has a stable financial stability, so it has the resources to put together a powerful marketing campaign for the new product. As the leading producing of consumer products, Coca-Cola needs to beware of any weakness when developing new product. The company should analyze if the product range is still relevant to the target customers. It should evaluate if there are right sales and distribution outlets to cater for the new product. The new product will face challenges in its development if the market research is not updated (Ranchhod and Gurău, 2007, PP. 509).
One clear opportunity for the new product is that the food and beverage industry is growing. Coca-Cola has experienced an increase in sales of beverages and the new product will capture a greater share of this market. Coca-Cola wants to take advantage of the social trends and changing purchasing behavior of consumers by producing appropriate products that meet customer needs (Jurevicius, 2013). Although there is growth of beverages market, there are threats. Consumers are becoming more experienced and price conscious in that they require intensive sales promotion such as discounts and offers to attract them. Moreover, there is threat of competitors entering the market. Coca-Cola needs to differentiate its products. This will ensure in a growing competitive market, its marketing activity will provide a positive return on investment based on sales and profits (Paley, 2007, PP. 98).
PESTLE analysis
This focuses mainly the external factors of the company and what is happening in the entire world. This is done via analyzing political, economic, social, technology, legal and environmental factors. The PESTLE analysis is used together with SWOT to enhance its external criteria of opportunities and threats, and to gain understanding of the external environment and the market (Westwood, 2002, Pp. 67). A variety of new legislation being implemented currently will influence the implementation of the new product. The price competitor’s products will influence the price that Coca-Cola will charge for the new product. The financial stability of Coca-Cola will provide resources to be used in the development of new product.
The social trends and changing purchasing behavior of consumers toward the products introduced in the market will affect the development of new product (Neil, 2009, PP. 63). People are changing their lifestyle that could affect the new product positively or negatively. The dedicated Coca-Cola website will support the new product and offer information to educate consumers on the use of the product. The online marketing will also be vital for launching the new product in the market.The new changing legislation may pose greatest threat to the development of new product (Ottman, 2011, PP. 32).
Strategies
Using the market-led approach, Coca-cola can introduce and develop the new product. In developing the new product, the emphasis will appeal the tastes based on the health of consumers. This focuses on product development together with an emphasis on consumer needs, which is a main differentiator for Coca Cola (Vrontis, 2003, PP. 290).
The company will use various advertising methods such as newspapers, social media and its website among others. There has been a significant emphasis on the need of consumer and increase use of experimental methods in the promotional mix. Experiential marketing deal with consumer via two way communications that bring brand recognition and add value to the target consumers (Cheverton, 2004, PP. 46). This assists in creating an emotional connection between the consumer and brand. Therefore, it is vital to balance the promotional mix in the development of the product.
Coca-Cola can promote new product via a mixture of above the line and below the line promotion. The above the line promotion will include use of television which will reach a more customers. By use of sport, the new product will create a positive image of the people associated with the product. Promotions will be used to attract new customers (Stone, 2001, PP. 123). For instance, the distribution of free samples will promote the trial of the new product in the market, which will increase purchases (George, 2001, PP. 45). These promotions will help to create awareness and consumer loyalty, which will strengthen the new product brand presence.
Findings
Coco-Cola’s market research confirms that there is an increase of the numbers of consumers who want to purchase quality products that promote their health. We found that the launch of a new product will keep on capturing a greater share of this growing market via the new product (Nijssen & Frambach, 2001, PP. 45). The main principle of Coca-Cola is to achieve consumers’ needs for quality and healthy products. This is the reason why the new product will focus on market research and use best method to communicate with customers. For instance, the new product will communicate its value to promote wellness of the consumers.
Conclusion
The marketing strategies help the firms make corporate-level strategic decisions about the scope, competition, positioning of their brand portfolio. As seen in the analysis, the new product marketing strategy, will depend on the company’s performance in the market. Marketing strategies helps the company to keep in touch the changing environment in which purchasing patterns and social attitudes keep on shifting.
Recommendations
- The company should ensure the new product is retained in order to match the growing demand.
- The company’s product research and development network should ensures to tackle challenges of changes in consumer behavior (Doyle, 2008, PP. 77).
- The marketing strategy used in launching new product should deliver what consumers want based on the product they consume.
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