This document proposes an e-marketing strategy for Coca Cola as the official supplier of the 2012 Olympics in the UK. It recommends utilizing digital media like mobile phones and the internet, which over 75% of the UK population will have access to by 2012. The strategy includes conducting market analysis to understand the environment and competitors. It suggests segmenting the market and targeting customers. The marketing plan involves developing a theme, messages to promote Coca Cola over six months across digital channels, and allocating 60% of the budget to mobile and 40% to internet based on user ratios. In conclusion, it recommends using the theme "Coca Cola...the word of Energy and Power Drinks", a six month timeline, five
1. SSA
Marketing Strategy
Coca Cola Company: as a 2012 Olympics
official supplier
Dr. Salahideen Al Haj
Consultant
salhaj@yahoo.com
10/8/2012
UNRWA
2. 1
Abstract
This report propose marketing strategy for Coca Cola Company as a 2012 Olympics official
supplier. The strategy design based on integrated approach for the environment analysis
and estimation process which point out that, by 2012 in UK, 99% of the population will
have one or more than one type of digital media (i.e. mobile phones and internet
anywhere). Coca Cola Company e-marketing strategy ( marketing model and plan) will
utilize these means to achieve overall mission, goals, and the values that Coca Cola
Company guided by .
1. Introduction
Marketing strategies play a key role in helping multinational enterprises (MNEs) to
formulate an overall plan of action. These include ongoing market assessment, the use of
effective pricing and internet marketing with open innovation ( Rugman & Collinson
2006). The report structure as follows; in section 2 marketing environment and competitor
analysis. In section 3 market segmentation targeting and positioning. In section 4 an
advertising campaign design. Conclusion and recommendations in section 5 closing the
report.
2. The Marketing Environment and Competitor Analysis
Details analysis of UK,s environment, in which Coca Cola will operate, show that a high
adoption rate of different digital media. Based on, this report proposed Coca Cola e-
marketing strategy for 2012 Olympics. The proposed strategy (e-marketing strategy) will
use digital media (web, email, and phones) which grownup with more than 75% within the
period (1997-2005) in UK as shown in figure 1.
3. 2
Figure 1. UK rate of adoption of different digital media (Chaffey 2007)
These means are identified as areas of competition to understand and reach more
customers for delivering Coca Cola Company point of view messages.The contributions
can consider as a direct and indirect form: Direct: online revenue contribution, an
assessment of the direct contribution of the e-media to sales, usually expressed as a
percentage of overall sales revenue. Indirect: online promotion contribution, an
assessment of the proportion of customers (new or retained) who use the online
information sources and are influenced as a result. This is useful for objective setting and
highlighting the importance of the new channel.
2.1 SWOT Analysis
The SWOT analysis aims to identify strength area to utilize and increase, weakness area to
improve, opportunities to target, and threats to avoid. Based on Coca Cola Company
profile and UK environment factors figure 2 developed.
S W
Coca Cola History,
Coca Cola Quality
Brand Name
Marketing Mangt
CR Mangt
SC Mangt
O T
New Market,
New Customers
New Media
New Products
Environment
4. 3
Figure 2. SWOT Analysis
2.2 PEST Analysis
PEST analysis aims to identify environment positive and negative factors as shown in
figure 3.
Dimension Factors Y/ N
Political • Monopolies legislation
• Environmental protection laws
• Taxation policy
• Employment laws
• Government policy
• Legislation
Y
Y
Y
Y
Y
Y
Economic • Inflation
• Employment
• Disposable income
• Business cycles
• Energy availability and cost
Y
N
N
Y
Y
Socio-cultural • Demographics
• Distribution of income
• Social mobility
• Lifestyle changes
• Consumerism
• Levels of education
Y
Y
Y
Y
Y
Y
Technological • New discoveries and innovations
• Speed of technology transfer
• Rates of obsolescence
• Internet
• Information technology
Y
Y
Y
Y
Y
Figure 3. PEST Analysis
On the other hand market Assessment process passes through six phases as shown in
figure 4, namely:
i. Initial screening: basic need and potential
An initial survey will be used to determine the basic need potential of the Coca Cola in
UK market. This survey helps answer the question:
Who might be interested in Coca Cola?
One way in which this is done is by examining the current import policies of
UK and identifying those Soft Drink that are now being purchased from
abroad.
5. 4
A second is by determining local production. A third is by examining the demographic
changes that are taking place in UK, which will create new, emerging markets.
ii. Second screening: financial and economic conditions
After the initial screening, Coca Cola will evaluate the financial and economic aspects of
Coca drinks it is thinking about offering. These include such aspects as return on
investment, market growth, market size, and market intensity. Then will examine the
impact of political and legal forces, socio-cultural forces and the competitive environment.
Based on these findings, the Coca Cola will then decide how to proceed.
Figure 4. Assessment Process
iii. Third screening: political and legal forces
iv. Fourth screening: socio-cultural forces
v. Fifth screening: competitive environment
vi. Final selection
Frame work in Figure 4 will drive the selection process for marketing strategy, theme ,
messages, and advertising media.
3 Market Segmentation, Targeting and Positioning
Market Segmentation Services defined as : is a full service research firm specializing in
Market Segmentation Studies for consumer, business, and health care markets. Market
Segmentation Services aim to provide fresh, perspectives for increased customer
1.S 2.S 3.S 4.S 5.S 6.S
6. 5
identification, selection, profitability, and retention. The goal for Market Segmentation
Services is understanding customer, such that Coca Cola Company marketing
management can develop proper marketing strategy and design an advertising campaign.
Our approach combines qualitative methods figure 1, and advanced quantitative analytics
figure 2 and figure 3 to provide actionable real environment results that can be used to add
customer value across Coca Cola Company.
3.1 e -Marketing Strategy Design
e-marketing strategy design process based on SOSTAC planning model as shown in
figure 5 and e-marketing plan as shown in figure 6 introduced by (Chaffey ,2007)
Figure 5. SOSTAC planning model (Chaffey, 2007)
7. 6
Figure 6. e- Marketing Plan (Chaffey 2007)
4 An Advertising Campaign Design
An advertising campaign is a process based on a series of advertisement messages that
share(contain) a single idea and theme which make up an integrated marketing
communication (IMC) Advertising campaigns will appear on digital media ( mobile
phones and internet ) across six months time frame as shown in figure 8 with different
messages.
4.1 Champion Theme
The critical part of making an advertising campaign is determining a champion theme, this
report proposed (Coca Cola … the word of Energy and Power Drinks) as marketing
theme. The campaign themes are usually developed with the intention of being used for a
substantial period but many of them are short lived due to factors such as being ineffective
or market conditions and/or competition in the marketplace and marketing mix. Our theme
driven by the occasion (2012 Olympics) sets the tone for the individual advertisements
and other forms of marketing communications that will be used. One more thing the
campaign theme is the central message that will be communicated in the promotional
activities.
4.2 Champion Promotion
Promotion is the process of stimulating demand for a company’s goods and services
(Rugman & Collinson 2006). AIDA (Attention Interest, Desire, and Action) is the core
idea for promotion process. Different approaches are used to achieve promotion process
goals. The proposed strategy will use the approach of: One product and One Theme
but different messages (Mi) as shown in figure 7.
8. 7
Figure 7. Promotion Approach
4.3 An Advertising Plan
Advertising plan will cover six months time frame, across the frame the plan will have
one product Coca Cola and one theme Coca Cola … the word of Energy and Power
Drinks. This theme later mapped to five messages for marketing plan.
Approach /
Time
1st
Month 2nd
3rd
4th
5th
6th
Product Coca Cola soft drinks
Theme Coca Cola … the word of Energy and Power Drinks
Message 1
Message 2
Message 3
Message 4
Message 5
Total of
messages /
Month
1 2 3 4 5 5
Figure 8. An Advertising Strategy
Figure 1 indicates that the ratio of internet users to phones users is (61: 85). The same
ratio used to define the budget for each media (out of the total budget allocated which is
10000) as shown in figure 9.
Media / Time 1st
Month 2nd
3rd
4th
5th
6th
Mobile 312.5 625 937.5 1250 1562.5 1562.5
Internet 187.5 375 562.5 750 937.5 937.5
Total of
Amount /
Month
500 1000 1500 2000 2500 2500
Total amount 10000
Figure 9. Campaign Budget Plan
5 Conclusion and recommendations
CocaCola
Them
e
M1
M2
9. 8
This report proposed the e-marketing strategy for Coca Cola Company as 2012 Olympics
official supplier and suggested digital media to drive the advertising campaign messages
based on Market Segmentation Services research firm specializing in Market
Segmentation Studies for consumer and business. Finally the report recommends the
following steps as a key driver:
1- To use Coca Cola … the word of Energy and Power Drinks as theme for an
advertising campaign.
2- The time frame to be six months for marketing plan.
3- To use five message in exponential spreading format for marketing.
4- To use digital media (mobile phones and internet everywhere) since almost all UK
citizens has one or more digital media.
5- To utilize Strength factors (history, product quality, and brand name) in marketing
plan to get Opportunities.