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Branding Strategic Marketing Analysis Assignment Samples and Examples

CA1: Coca-Cola's brand and positioning strategy

Introduction

The findings of the brand in the marketplace as well as in the mind of the customers are one of the key factors related to the development of the business. The proper findings which are related to the customer base are also very important. The position of the brand coca-cola is one of the most significant factors related to the enhancement of the business of coca-cola. The application of the proper business strategy by coca-cola has helped them to do their business properly. This part of the topic introduces the brand value of coca-cola, the positioning strategy of coca coal through the STP analysis, the external as well as the internal environment of the company through the SWOT and PESTEL analysis, the market share and revenue of Coca-cola, the procedure to achieve success by the organization, the highlights of the band value of the organization.

Understanding the brand Coca-Cola

The brand value is one of the vital factors related to the enhancement of the business of Coca-Cola. The proper value of the brand Coca-cola can help them to enhance their business. In 2021 the brand value of the company coca-cola was 38.66 billion US dollars whereas they faced a break in their brand value at the time of covid which is one of the significant factors.

 

The growth of the company from the side of the brand value is the most vital matter. The above graph represents that the company creates near about 5% growth in their business than the previous year and that an be a positive side for the organization. The above figure also indicates the lack of profit in the time of the covid 19. In the year 2019, the brand value of the company was 37.27 billion US dollars. In 2020 the brand value got decreased by about 4% whereas the other foods and drinks companies' brand value got decreased by about 6% which is one of the significant matters. The above statistics show the difference between coca-cola with the other brands that is also a very important matter related to the enhancement of the business.

 

 

Evaluation of Coca-Cola’s positioning strategy (STP Analysis)

There are several facts presented that are related to the coca colas positioning strategy which is one of the most crucial mater. The factors are

Segmentation

The application of segmentation is one of the most crucial factors related to the enhancement. The application of the proper segmentation strategy on thew make can help the organization to d heir business perfectly the proper application of the segmentation on the market can help the company to fix the target audience that is ve important. The creation of the target audience in the making is one of the most crucial matters for the organization. The creation of the target in the market can help the organization to create the proper marketing strategy to enhance their business ha is a very important matter.

Target marketing

The application of target marketing is also very important and that has been applied by the company coco coal. The proper research of the market, in this case, creates the biggest impact on the market. The proper targeting by the organization can be done with the help of the proper research o the very important market. The main target of coco-cola is the people who are belonging from 10 to 35 years of age. Though the base of the company is mainly related to the sot drinks that is why the organization has chosen this kind of people for their target that is very crucial (www.grin.com, 2022).

Positioning

The position in the market is also an important matter related to the enhancement of the business. The proper position in the market can help the company to enhance its business perfectly. The proper position can be achieved by the organization with the help of the brand value of the company. The increment in the brand value of the company can help them to enhance its space in the market. The proper targeting audience by the company can be achieved with the help of this also that is very significant.

Evaluation of Coca-Cola’s internal and external environment Through SWOT and PESTLE

 

SWOT Analysis 

 

Strength

 

  • Coca-cola is a popular soft drink brand and it has a unique brand identity. In history, this brand of soft drink is the most selling drink.
  • Undoubtedly coca-cola is one of the renowned soft drinks brands. In 2021 the report of Interbrand annual coca-cola is the 6th largest soft drinks brand with 57 billion of brand value.
  • The company sold its product per day 1.9 billion in more than 200 countries. It has a strong customer loyalty and this brand value is associated with happiness (Ling, 2017).
  •  Coca-cola soft drink brand is the largest market share. This brand distribution network is the most efficient and extensive in the world.

Weaknesses

 

  • Coca-cola has aggressive competition from the other soft drink brand Pepsi. In the beverage market coca-cola has been the market leader.
  • Coca-cola's diversification through the product has low than Pepsi's. There are many snacks item which the Pepsi brand has launched such as Lays, and kurkure but on the other side, coca-cola is lagging.
  • Coca-cola manufactures its beverage with carbonated which is a major reason for sugar. These days people are conscious of their health, so the result is that health experts are prohibited to use these drinks.
  • Coca-cola is over-dependent on a third party to provide the technology. This brand is signed with Microsoft for five years to supply the business software (Luo, 2019).

Opportunities

 

  • There are opportunities for the brand coca-cola to introduce new products and offer healthy drinks and foods like Pepsi. It can contribute to the brand with its image, and revenue and it can out from carbonated beverages.
  • Increasing the brand's presence and developing into nations it can emerge the markets that many regions have a hot climate and for the drinks have the highest consumption.
  • Coca-cola’s business is dependent upon the supply chain and logistics. It has the opportunity in the market for this brand to expand and bring healthy drinks to avoid people’s criticism (Geng, et al., 2019).

Threats

 

  • The coca-cola brand has a water management issue over this the brand has faced much criticism. In the region of water scarcity, many social media and many groups of environmental have claimed the vast consumption of water.
  • For contributing to plastic pollution in the environment California environmental group the has sued coca-cola brand. Coca-cola is also sued for its misleading recyclability and its use of single-use plastic bottles.
  • Coca-cola is in direct competition with the brand Pepsi. However, there are many other soft drink companies which are indirectly competing with coca-cola (Deshpande, 2019). Tropicana, star bucks, Lipton juice, Nescafe and Costa coffee and many other brands can threaten coca-cola for its market position.

 

PESTLE

Political Factors

Political factors on the food product coca-cola have a direct impact on the regulation and laws. The regulation is a form of the country to country. The US and Burma have banned coca-cola due to some trade sanctions. The sale was started after six years in 2012 after the sanction was suspended. Due to political conditions, there are two more countries such as Cuba and North Korea which country is also banned coca-cola. The trade war between China and US that was a major impact on coca-colas canned products. With the tariffs due to the rise in the price coca-cola company is facing pressure on aluminum and steel.

Economical Factors

Increase the price due to tariffs in 2019 coca-cola has reported 8% growth and in quarter 3 its revenue the growth. There are hundred and more than those countries where coca-cola distributes its products. Different countries have different types of tastes, cultures, customs and desires. By creating a new flavour coca-cola has updated and changed its products to accommodate its customers. The company has worth 80+ billion. From the beverage industry, the majority comes. In the other countries, the brand income is roughly 70% (Shtal, et al., 2018). Nowadays people want healthy drinks and coca-cola giving its minimum efforts to make healthy and without carbonated drinks.

Social Factors

To connect with its customers coca-cola has always planned social-campaigns. The company launched the campaign in 2014 named Shareacoke which was a mega success. People were encouraged that find a coca-cola bottle and feel that they are connected with this company. Then people give the bottle to their family or friends and then share it on social media with the use of the hash tag Shareacoke. It has an online store where the company let the customer's customized name on the coca-cola bottle. People are mostly connected with this company through the social media campaign and people have actively participated in these have become personalization their way of living.

Technological Factors

The coca-cola brand has always experimented with its product. In Japan, it is the first to drink frozen beverages. Coca-cola has an innovation-driven culture. The company invites people so the company can connect with the consumers. The company invites people to associate its products and invites them to play games online. To stay young, current and fresh this company is use social networking technology. The company allows customers so they can create their beverages and provide freestyle dispensers by the computer. For market research, the company also saves data that will be sometimes used through the company and also can understand the preference and tastes of the customers (Brondoni, 2019).

Legal Factors

For its quality and quantity of caffeine products, the company has faced trouble in the past. The company has paid low wages and treated their employees inappropriately for which the company was accused by labor unions. To its employees, it has alleged suits against racial discrimination. Despite apple and grape juice, the company has mislabeled its product such as blueberry and pomegranate juice which has a serious concern. Other more serious issues have been a concern with a topic such as water usage, packaging and air pollution. The coca-cola company should majorly focus on corporate ethics.

Environmental Factors

For the draining water ground, the company has faced a massive amount of backlash. The company is reported as the biggest freshwater consumer in the world. The company has tried to eliminate the problems and reduce its carbon footprint reduce to near zero.  The company is starting to use water with a smart farming methods such as CARE and RAIN and the company possibly using less water. To make Fiji beverages the company is starting solar energy. In 2018 the company reported that it started to work toward the world without set various goals and waste for 2020and it improves water efficiency by 25% at present which is 18% (Wang,  2021).


 

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