The Coca Cola company - You need to consider the current market, find a suitable segment and develop a marketing strategy for your idea.

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AVCE Business Coursework

Andrew Mercer

Unit 3 - Marketing

The Coca Cola Company requires ideas on the development of a new fizzy Coca Cola Drink. It must utilise the flavours and styles of existing Coca Cola Fizzy Drinks, but capture a currently untapped or unfulfilled market segment.

You need to consider the current market, find a suitable segment and develop a marketing strategy for your idea.

Market research -

Identify the most appropriate sources of primary and secondary data and consider which will provide you with the most effective information.

Collect secondary data on the market including demographics, trends, segments and competitors. Refer to the usefulness of marketing information databases for this process.

Use primary sources of information (such as a survey using a questionnaire) to help you come to a decision about your product. Explain why you chose to use a particular method.

Consider the validity of the information you have gathered.

Summarise your findings clearly.

Marketing models -

Product Life Cycle

Boston Matrix

Ansoff's Matrix

Using these models, assess The Coca Cola Companies current portfolio and consider a range of alternatives for the development of product lines and markets.

SWOT and PEST Analysis -

Assess The Coca Cola Company through the use of a SWOT analysis and comment on the results of your findings.

Undertake a PEST analysis in order to gain an understanding of the external environment in which The Coca Cola Company is operating.

Explain how these relate to the development of your strategy.

Marketing Mix -

Your findings should now enable you to develop a detailed marketing mix for your chosen product.

What is the product (including packaging)?

What is the pricing strategy and are there alternatives?

Where is the place it will be sold (including distribution)?

What promotional mix will you use?

Evaluation -

Briefly summarise your strategy and identify some of the potential problems that may occur if your idea was put into action.

Presentation -

Present one aspect of your marketing plan to an informed audience.


The Coca Cola Company has employed me to devise a new fizzy Coca Cola drink that will fulfil an untapped area of the drinks market. I plan to devise a questionnaire to ask members of the public which flavours they 'hope' that The Coca Cola Company will introduce in its famous 'Coca Cola' drinks range. I will then analyse the findings and produce several charts and graphs to show the flavour that the public want to see available on the market.


The Coca Cola Company is a limited company. It has the opportunity to become larger than the other forms of private business organisation. It is allowed to raise capital through the medium of the Stock Exchange, which quotes their share prices, and this creates a fullness of financial possibilities. The initials "PLC" (or plc) appear after the name of the public limited company. Only two people are needed to form a public limited company and there is no stated maximum of shareholders. In The Coca Cola Company's case it is owned by many shareowners, some of whom are members of staff.

The Coca Cola Company's business advantage is:

* Shareholders have limited liability, so it means that the shareowners lose what they put in the business and they receive annual dividends.

* It is easier to raise finance from banks, because The Coca Cola Company has many assets, which means banks are insured their money back or The Coca Cola Company's assets instead of the money.

* Since it has many assets, it is possible to operate on large scale, which means more production and promotion for the product. This leads to The Coca Cola Company's objective to grow the business and also to operate in a wide range of markets. This leads The Coca Cola Company to have a high income, which is a success to The Coca Cola Company's objective, which is Mainly to maximise profits.

* Suppliers feel more confident about trading with legally established bodies

* There are tax advantages associated with giving shares to employees

The disadvantages are:

* Since The Coca Cola Company is a plc, its affairs are public; e.g., accounts and annual returns must be audited. This gives opportunities to competitors to get information about The Coca Cola Company. For example if Coca Cola makes a loss, competitors will know about it and use it to their advantage and potential investors will query on whether they should invest I the company.

* The Coca Cola Company is a large business it has many different departments for different jobs, all these departments have to work together. Information passes between departments can be confusing.

* The Coca Cola Company has many assets, which contain many capitals, which are very costly to use.

* Since The Coca Cola Company is a large business, formatting and running, its costs can be expensive.

* Since The Coca Cola Company is a plc, Heavy penalties are imposed if "rules" are broken.


Public limited companies like The Coca Cola Company will have objectives such as:

* Maximise profit.

* To be the number one product in a given market.

* To maximise sales.

* To expand.

* To operate in a wide range of markets.

* To give satisfaction to customers.

* Have a good reputation.

* To provide the freedom for workers to express themselves and suggest ideas to help the business.

* Achieve best possible financial return on capital.

* Boost or maintain share market values.

These objectives will ensure The Coca Cola Company's success as a business. From the statistics I have, it shows that The Coca Cola Company is a very successful business.

Statistics Of The Coca Cola Company:

The above graph shows the statistics of The Coca Cola Company's last ten years.

The above graph shows the statistics of The Coca Cola Company's during the past twelve months.

Functional areas:

Every public limited company has organisational functions these are the main activities of the following areas at the Coca Cola Company, which allow it to exist and become a successful business.

The factors of production:

LAND- buildings (site where the business is located).

LABOUR- managers, workers (any jobs roles that need to be filled).

CAPITAL- equipment, machinery needed.

ENTERPRISE- the willingness to take risks to earn a profit.


The finance department is in charge of and deals with money. The Finance department keeps records of all financial documents this involves reporting and recording expenses spent and profit made, asset value and cash flow (money that goes in and out of the business). Since The Coca Cola Company is a limited company the finance department must, each year, file with Register of Companies a set of audited accounts. These will include a director's report, auditor's report, profit and loss account, balance sheet, source and application of funds and an explanation of these accounts. It is also necessary to file an annual return giving details of the directors, shareholders and other information required by law. All this information will be kept on file at Companies House and is opened to inspection by members public.

This department is in charge of giving budgets to other departments (by doing this it makes sure that the business reaches break even and no less in really bad circumstances). This is also, so that the other departments keep to their main objective and responsibilities and do not waste money.

Managers see these targets and compare them with other past targets to find how successful the business is. The targets help the finance department to make plans for the future that will help the business to achieve its objectives. For an example the finance department gives research and development, a budget of £50,000. The research and development department will use this money within one financial year and not over-drawing (not taking more money). But under circumstances if research and development department required more money to develop a new drinks, the finance department will analyse research and development's plans for producing a new drinks and if they think it will be successful finance will give the money needed. Through this the departments would have achieved their objectives (e.g. making a profit, good reputation, achieve best possible financial return on capital). They way that The Coca Cola Company deals with exchanging of money is by S.A.P, which is an electronic payment system. For example if Tesco purchases a quantity of Drinks from The Coca Cola Company. The Coca Cola Company can bill Tesco straight away. This process is time efficient and is a straightforward process.
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The production department produces the products; any activities associated with production are wealth creation. A simple example of wealth creation would be the production of a drinks. The difference between all of the costs of the production and the price of the finished drinks represents the wealth that has been created. The contribution of all those involved in its development have added value to this process and helped to create that wealth.

In production there has to be an input, which is transformed to an output. The transformation is taken through by processes, these add ...

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