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Slide 1: Product line extension: Presented by: Daniel Dongsieri(A4007599) Aims of presentation : Aims of presentation To assess the situational analysis of coca cola To asses the current marketing strategy of coca cola. To extend one of the product lines of coca cola Profile of targeted customers The research techniques used in analysis Situational analysis of Coca cola : Situational analysis of Coca cola This part considers both the internal and external influences on coca cola marketing planning. The macro-environment is analysed using the PESTEL framework: Macro-environment (continued) : Macro-environment (continued) Political factors Coca cola operates globally and their performance is influenced by the political stability and instability of these countries. There is currently political stability in the UK and coca cola business is flourishing Macro-environment (continued) : Macro-environment (continued) Economic factors High inflation in any of the countries will cause the price of coca cola to rise and consumption of coca cola may fall. The UK economy is recovering from recession and employment level is rising people will consume more coca cola products. Macro-environment (continued : Macro-environment (continued Social factors Consumers in the different countries will have different taste and perception about coca cola. In the UK the brand is known for quality products and marketing it will be easier. Technological factors The current environment is technological driven and the need for dynamic innovation. Coca cola has got competent research and development(R&D) team who discover new technologies to improve productivity. Macro-environment (continued) : Macro-environment (continued) Environmental Coca colas operations results in environmental footprints. They aim at reducing them in their areas of operations to gain brand image. Coca cola plant relies heavily on electricity for production. They generate alternative power to reduce this reliance. Macro-environment (continued) : Macro-environment (continued) Legal factors Coca cola is given the copy right to operate and is the only company that can produce and sell coca cola in all countries. Several countries have laws regulating how companies should operate and coca cola is a law abiding corporate citizen in UK. Micro-environment : Micro-environment The micro-environment can be analysed using porters five forces. These forces determines the attractiveness of cold drinks industry. Threat of new entry. This appears to be very low in this industry as there is exclusivity of right for coca cola to operate in some geographical locations. It is also capital intensive and require huge investment. This serves as a barrier to entry. Brand loyalty from customers serves as a barrier to entry Economy of scale and scope also serve as a barrier to entry. Micro-environment(continued) : Micro-environment(continued) Threat of substitutes Fruits and vegetable juices are closed substitutes for the industry. For health concerns, many choose to consume organic fruit juice. Bargaining power of suppliers This also appears to be weak as suppliers products(e.g. sugar) are basic commodities and ingredients Coca cola buys in bulk and rather has power over suppliers. Bargaining power of customers(B2B) This appears to be strong as customers are mainly large supermarkets and retailer. They have the power to negotiate prices down to reduce coca cola profitability.

Micro-environment(continued) : Micro-environment(continued) Competitive rivalry There are currently three(3) major players in the cold drink industry. Coca cola Pepsi cola Cadbury Schweppes Coca cola has got dominant position. There are currently growing markets and niches that can be exploited so competition is not so keen. Internal environment : Internal environment Men The experienced employees of coca cola will help in introducing the new product. Money The new product development will require finance for developing and launching it. Coca cola is financially sound. Internal environment(continued) : Internal environment(continued) Markets Coca cola has experiences to market the product to target customers. Market exist and can be reached. Make-ups The culture influences how coca cola considers this new idea and options. The culture at coca cola encourages new ideas for growth. Internal environment(continued) : Internal environment(continued) Management Management are experienced and successful in launching new products. Machine Coca cola own plant & equipment and franchisees Materials Good relationships with suppliers. Coca cola v Pepsi products : Coca cola v Pepsi products Sample of Coca colas products Sample of Pepsi cola products (A major competitor) Profile of target customer : Profile of target customer Age group 4 to 65 Gender Both males and females Family type Individuals, family and groups Income Packages for all income levels Level of education All levels of education Research methods : Research methods PRIMARY Research Questionnaire . Direct interview of retail shops and consumers. SECONDARY Research Internet Sites www.google.com www.Coca-Cola.com www.thecoca-colacompany.com Research techniques : Research techniques Secondary research Gathering and analysis of existing information available Information from the local library including industry research report and magazines. Information from journal articles, newspapers and the Internet. Primary research : Primary research Primary research Collecting information from field specifically meant for launching O2 coke. Questionnaires were designed for 20 potential customers to identify the target market needs. Questionnaires were based on the basic marketing mix (product, price, place & promotion). Please read my marketing plan for more details : Please read my marketing plan for more details Thank You