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Introduction

MICHAEL ROMILLY (0105881) PG Dip ENTREPRENEURSHIP MT1103A "BUSINESS GROWTH STRATEGIES" JIM PATERSON 'Select a business of your choice then carry out an analysis of the business to identify strategic venture growth opportunities which are likely to attract customers and contribute to the overall success of the venture' TABLE OF CONTENTS 1.0) INTRODUCTION 2.0) MARKET SHARE 3.0) MARKET PENETRATION 4.0) MARKET DEVELOPMENT 5.0) PRODUCT DEVELOPMENT 6.0) DIVERSIFICATION 7.0) RECOMMENDATIONS 8.0) CONCLUSION 9.0) APPENDIX 1 10.0) APPENDIX 2 11.0) REFERENCES 1.0) INTRODUCTION The purpose of this paper is to analyse Coca-Cola as an organisation and to identify potential strategic growth opportunities (appendix 1). In order to identify strategies that are likely to attract customers and contribute to the success of the business as a whole, it is necessary to consider a number of factors. This paper will begin by discussing these critical factors including the nature of the competitive arena (market share), market penetration, the development of new markets, product development and product diversification (Trifiletti, 2002). In order to develop strategic growth opportunities, it is essential to analyse the current situation of the company and the factors that are critical to future success (Grundy, 1995). 2.0) MARKET SHARE In order to select the correct growth strategies for the organisation, it is necessary to analyse the organisation's current market share. From the following information it is possible to ascertain that Coca-Cola are currently the CSD market leader in many countries across the world. ...read more.

Middle

However, Schlegelmilch (1998) suggests that such a strategy can potentially backfire if acts of CSR are engineered as a matter of 'enlightened self-interest' or an exercise in public relations, rather than a genuine attempt to help and benefit society. Finally, this gives Coca-Cola direct access to American teenagers. In essence, students in America represent a large proportion of overall domestic sales revenue. By establishing deals with schools, colleges and universities, the company can target students directly in an attempt to introduce new product lines and categories and increase overall levels of consumption. However, there are risks that can be associated with this type of strategy (Smith & Quelch, 1996). Coca-Cola must attempt to ensure that their marketing actions are genuinely based on ethical principles; any deviation from this may result in bad publicity for the corporation (Schlegelmilch, 1998). Coca-Cola could effectively target this market very aggressively by using advertising and promotional material that appeals specifically to American teenagers by using high profile celebrities and sports personalities to endorse the brand. Coca-Cola could also promote organisational growth by targeting the 'baby-boomer1' market. This would involve using advertising that appealed to older users who still maintain a youthful outlook on life and targeting them in the same way. Coca-Cola could dramatically increase sales revenue through a combination of product placement and brand exclusivity contracts with large event organisers, restaurants, sports/concert arenas and amusement parks (Trifiletti, 2002). ...read more.

Conclusion

In light of this assertion, it may be pertinent to suggest that Coca-Cola should not attempt to significantly diversify its product range in an attempt to focus on what it does best. 7.0) RECOMMENDATIONS - INCREASE THE CONSUMPTION LEVELS OF EXISTING PRODUCTS THROUGH ADVERTISING - REINFORCE PROMOTIONAL MESSAGES AND BRAND IMAGERY THROUGH THE USE OF HIGH PROFILE CELEBRITIES AND SPORTS PERSONALITIES - IMPROVE ORGANISATIONAL REPUTATION BY PLACING AN EMPHASIS UPON CORPORATE SOCIAL RESPONSIBILITY - CREATE A LIFETIME OF LOYALTY BY DEVLOPING RELATIONSHIPS WITH SCHOOLS, COLLEGES AND UNIVERSITIES IN ORDER TO PENETRATE THE HIGHLY LUCRATIVE TEENAGE MARKET - CREATE PROMOTIONAL MESSAGES DESIGNED TO TARGET THE 'BABY BOOMER' MARKET - DEVELOP EXCLUSIVITY CONTRACTS WITH LARGE EVENT ORGANISERS, RESTAURANTS, SPORTS/CONCERT ARENAS AND AMUSEMENT PARKS - DEVELOP MARKETS IN THE FAR EAST BY ADAPTING PRODUCTS ACCORDING TO CULTURAL DIFFERENTIATIONS IN TASTE - TARGET CONSUMERS FROM DIFFERENT ETHNIC AND SOCIO-ECONOMIC BACKGROUNDS USING VARIATIONS OF EXISTING PRODUCTS 8.0) CONCLUSION In conclusion, there are a number of strategic growth opportunities that are available to Coca-Cola as an organisation. However, a number of potential opportunities have to be deemed unsuitable due to the elements of risk that would be involved in undertaking them. The strategic growth opportunities that have been identified in the recommendations section of this report have been chosen in an attempt to penetrate and develop new and existing markets. 9.0) APPENDIX 1 (cited in Kotler, 2000) EXISTING PRODUCTS NEW PRODUCTS EXISTING MARKETS NEW MARKETS 10. ...read more.

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