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Marketing Plan: Phase I, II & Phase III
University of Phoenix
MKT/421 – Marketing
Introduction
The Coca-Cola Company is introducing a new and innovative drink that quenches
one’s thirst as well as combines many flavors with a crisp grapefruit, lemon, and lime flavor. In
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preparation of introducing this new beverage, readers will learn the history of the organization
and how marketing is important to the success of Coca-Cola while introducing a new product.
Before any new product is introduced to the consumer the company conducts a SWOTT
(Strengths, Weaknesses, Opportunities, Threats, and Trends) analysis. Coca-Cola will reveal the
research tactics and marketing strategy used to develop and advertise this new product. CocaCola’s mission “At the Coca-Cola Company we strive to refresh the world, inspire the moment
of optimism and happiness, create value and make a difference” (The Coca-Cola Company
2012).
Coca Cola
For the longest time Coca Cola has been in people’s minds concerning about choosing a
brand of soda. Coca Cola Company has been around for a long-time since the 20 th century. The
brand name was created by a man named John Pemberton, who was an Atlanta pharmacist. This
mixture was made up with carbonated water and a caramel-colored liquid. It was first sold at the
Jacobs’ Pharmacy soda fountain at five cents a glass (The Coca-Cola Company). Coca-Cola is
currently sold all over the world. The Coca-Cola brand has embarked in everyone’s lives in some
way or another. This large brand markets their product in a way that puts them on top of the
beverage chain. Their marketing made people believe there was a “miracle” to the combination
of sugar, water, and phosphoric acid in the soda itself (How Has Coca-Cola Impacted America).
Coca-Cola Company markets the brand by utilizing celebrity endorsements. Hilda Clark a
songstress and actress between the 1893 and 1904 era was the first celebrity to endorse CocaCola Company. Within the 1980s’ Paula Abdul was such a hit for Diet Coke (Appealmedia). By
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using celebrity endorsements will focus and lock in targeted group to by the brand. This would
create popularity and generate profits and revenue.
Coca-Cola is sold all over the world, in every gas station, convenient store, grocery store,
and even in restaurants. In order for people to have this brand or product in hand would have to
be distributed by the thousands drivers and personnel. Coca-Cola has employed over 100,000
people throughout the world. Their workers are one of their assets to the company. This
company has departments from beverage concepts to developments of merchandising (CocaCola Company). Coca-Cola is everywhere and is one of the leading products in the beverage
industry, which leads to many different products in the market, such a Coke Zero, Diet Coke,
Sprite, etc. Coca-cola has more than 500 brands within the company and this has touched
everyone in some miracle.
Crispade and Crispade Zero
This new product introduce by the Coca-cola company was derived from the company
listening to the customers. A consumer wrote to the company explaining how one day he or she
took the drink Power Zero and decided to combine carbonation with the drink, so the customer
added a Sprite Zero to the Power Zero and discovered an amazing combination. The drink was
refreshing with a taste of fruit punch, mixed with a carbonated crisp grapefruit, lemon and lime
taste while still getting the benefits of rehydration, from the minerals, vitamin B3, B6 and B12
needed to support his or her energy and metabolism during workouts and intense activities. The
writer expressed the different varieties of Poweraide and Poweraide Zero he or she combined
with Sprite or Sprite Zero, for example: Mixed Berry, Fruit Punch, Grape, and Strawberry and
enjoyed all the combinations. Coca-cola listened to the consumer and combined the products to
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become one beverage to create a flavorful, crisp, hydrating beverage which includes vitamins
and minerals to keep active people hydrated and healthy. The beverage is also enjoyed by
consumers who need a refreshing crisp thirst quenching beverage to drink.
The Importance of Marketing
Very often consumers have the needs to understand what makes a brand different
form another one. For this reason, marketing is important to Coca-cola’s success so to transmit to
the end user what the product offers. Coca-Cola trademark is an example of how a company
enjoys the benefit of the marketing mix components. Hence, it attains the development of a
product’s traits that differentiate it from competition, so raising the loyalty and consummation of
the brand. A productive Marketing group is capable of analyzing carefully consumers’ needs
and observer the marketing moves of competitors.
A business may have established remarkable item for consumption and form a
particularly capable administration unit, success centers on influencing considerable amounts of
consumer to decide on that business’s products or services instead of someone else’s products or
services. Developing a business moves toward the ability to persuade people to buy. New tactics,
a wide-ranging interpretation of consumer behavior and insistent message transmission of the
company bring together sales success. “Every society needs a macro-marketing system to help
match supply and demand” (Perreault, Cannon, & McCarthy, “Marketing’s Value to Consumers,
Firms, and Society, Macro-Marketing,” 2011).
Based in the United States, Coca-Cola is a soda beverage company, which is
focus on global society consumption. Therefore, marketing is an essential element to this
organizations success. To obtain satisfactory results from its marketing team, Coca-Cola project
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for Crispade and Crispade Zero must be comprised of strategies aim to gaining new consumers
of the product, branding it, and producing an effect on consumer’s behavior. These strategies are
carried out to promote sales. Comprehending consumer behavior involves marketing, and
interactions. Behavior includes everything regarding the decisions and activities of consumers as
well as relating with the selecting, purchasing, making use of, encouraging goods and services.
“Different producers in a society have different objectives, resources, and skills. Likewise, not
all consumers share the same needs, preferences, and wealth. In other words, within every
society there are both heterogeneous (highly varied) supply capabilities and heterogeneous
demands for goods and services. The role of a macro-marketing system is to effectively match
this heterogeneous supply and demand and at the same time accomplish society’s objectives”
(“Marketing’s Value to Consumers, Firms, and Society”).
SWOTT Analysis – CRISPADE
“CRISPADE” is a new product for beverage market. CRISPADE is a combination of
Powerade and carbonated drinks like Sprite. Both beverages have captured almost the whole
market in its respective field. Powerade is sports drink that gives energy and Sprite gives lemon
and lime flavor. Coca Cola emphasized marketing strategy, technology, packaging, consumer
trend, and promotion for their products. Evaluating both internal and external environments is an
integral part of creating a marketing plan. The SWOTT analysis provides information market
researchers need by elaborating on the internal environment, strengths, and weaknesses as well
as the external environment; opportunities, threats, and trends (Kotler & Keller, 2009). By
evaluating the internal environment, Coca Cola gains a better understanding of the strengths and
weaknesses within the company.
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STRENGTHS
Crispade it is a combination of two different products and its test is new for the market. A
soft drink that gives energy and it is the USP of this product. The product will be launched by a
well establish brand who has long experience in the beverage market field. Crispade also contain
B3, B6, and B12 vitamins, which is one of the selling points for this beverage because more
people are looking into the nutrition in any products.
WEAKNESS
Words of mouth are weakness and strength for a company and it is very hard to control.
Another thing is that lack of popularity of many Coca Cola products. There are many health
issues that are surrounds some of their products. Most of the beverages contain high amount of
sugar and calories.
OPPORTUNITIES
It has many brands and it should continue to exploit and pursue. This new product will
give opportunity for employment directly and indirectly. Coca Cola has many brands but some
limited brands can results a large profit. This new brand may give large profit to Coca Cola
because it is has new concept. This new product has opportunity to continue the gap between
them and their competitors.
THREATS and TRENDS
Nowadays people are constantly changing their eating and drinking habits. It could
affect the new product. There is some legal side also with this company. Its main competitor is
Pepsi; it is selling very similar drinks. It can copy one’s new formula before capturing market.
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Additionally, the economic status of the country discourages consumers from spending money.
Today’s generation wants shortcut to fulfill their daily need of essential vitamins with
good test. Coca Cola is famous for its trendy packaging and attractive promotion.
Marketing Research to develop a Marketing Strategy
To develop a strategy for marketing Coca-Cola needs develop a research plan how this
strategy. This research will consist of four steps that target four areas of this plan. The four
areas are segmentation, targeting, differentiation, and positioning. By combining these areas of
research Coca-Cola can develop a marketing strategy for.
The first step will consist of research of segmentation. In this step Coca-Cola will
research the possibilities of the buyer traits. Behaviors, needs, and characteristics have to be
compared. There are different locations that Crispade can be marketing in the world.
Researching the different traits of potential customers in various areas a prime target for the new
product can allow for success.
Needs, characteristics, and behaviors consist of such barriers as culture, age, interests,
knowledge, and many other variables of the customer. Directing emphasis in these areas will
help the Coca-Cola Company in developing a target group for the new Crispade product.
The next step in the process of research marketing is to market targeting. “The company
must first collect and analyze data on current segment sales, growth rates, and expected
profitability for various segments” (Armstrong, Kotler, 2011). This step basically targets one of
the segments researched in the segmentation process. Developing a target area will help CocaCola pinpoint that customer trait will be targeting by them. This step the company will also
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develop a plan that may offer the greatest interest and success that is associated with the product.
Differentiation and positioning are the last two steps in developing a marketing strategy.
In this process Coca-Cola will develop a strategy to promote the differences of Crispade from
other similar products that may be on the market. How is Crispade different or what does it have
to offer that other products cannot. There can be many differences that can be promoted. These
differences can consist of importance, distinctive, superior, communicable, preemptive,
affordable, and profitable (Armstrong, Kotler, 2011).
Conclusion
Market diversity establishes the pattern for the styles business creates an industry or
product more attractive than similar ones. Differentiating the market is in relation to the way
companies sell their product but not, which is the product the company sells. Marketing is
valuable in the success of an organization. Nowadays, corporate world confronts many
challenges. Often these barriers affect the level of permanency of business in many markets.
Industries, which are even recognized internationally set as well the degrees of daily struggle to
preserve status quo are not exempted from facing instability. Studying the opportunities in the
market, acquiring tactics, influencing the offers, running, and carrying out marketing platforms
are altogether a portion of setting a strategic marketing plan. A marketing plan should adjust to
the new economy, which develops consumer satisfaction and importance by successfully
targeting the right consumers and retaining those consumers for repeat purchases at the same
time as searching and obtaining new ones. The plan concentrates on tactics for branding,
consumers’ purchasing behavior, and marketing mix plans in addition to meeting marketing
goals holding in mind that the plan is in lines with the corporate goals.
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Marketing Plan II-CRISPADE
Coca-cola market team; defines the process of introducing and marketing “CRISPADE,”
as a new product and identify their target population through research and segmentation criteria.
The market team will describe the consumers and organizational buyers of the product and the
factors influencing their decision in becoming a part of this new innovation and how Crispade
will affect the lives of those who drink this product. As the marketing team embarks on
introducing Crispade to organizational buyers and consumers, there are several factors affecting
the details of marketing strategies. Coca-cola team is providing details regarding their strategies
in promoting the upcoming new drink Crispade and how the team will use different strategies to
reach the designated target population.
Segmentation Criteria and Target Population
In determining the target population the Coca-cola marketing team must first identify
segments of the population with the aim of finding the most likely group of consumers to try
CRISPADE. According to: (Perreault, Cannon, & McCarthy 2011, p. 103)
“A best practice approach for segmenting product – markets
1. Select the broad product-market.
2. Identify potential customer needs.
3. Form initial homogenous submarkets.
4. Identify determining dimensions.
5. Name possible product-makers.
6. Evaluate product market segment behaviors.
7. Estimate the size of each product market segment.”
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The product Crispade will appeal to many segments of the population but the primary
target will be the consumers who are active in sports, intense workouts, and employees involved
in jobs including extreme labor, which increase the risk of dehydration. Crispade will not only be
refreshing ice cold drink but also hydrate the consumer with the minerals, vitamin B3, B6, and
B12, needed to rehydrate the consumer during workouts and intense activities.
The product is introduced and becomes popular the market team will segment the
population into sub-markets. The marketing team is conducting research to create a version of
Crispade to meet the needs of active children and teens. The current culture many children begin
to participate in structured sports as early as age five. Coca-cola, and there product maker is
developing Crispade for children and teens to ensure they receive only the required amount of
minerals and vitamins for their age and weight. Coca-cola and their research team remain true to
their customers in providing safe products while meeting the requirements of the Food and Drug
Administration guidelines.
The other segment population is older adults, retirees, and the disabled. The segment of
this population is encouraged to stay active and are at a higher risk of becoming dehydrated,
these consumers would benefit from drinking Crispade during any activities to ensure they
remain hydrated and energized during their activities. The disabled, occasionally experience dry
mouth or dehydration as a result of medication. Crispade is refreshing drink to help eliminate dry
mouth temporarily and keep these consumers hydrated. Crispade is a drink/soda, which includes
vitamins and minerals to impede the consumers desire to quench his or her thirst.
Organizational Buyers and Consumers
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There are two categories included within the company is the buyers’ market and
consumer market. Every person makes a purchase for an item is considered to be categorized in
the consumer market. Consumer can purchase any item for his or her own personal use and
personal gain. Consumers purchase Coca-Cola Crispade for the simple fact of wanting it.
Consumers buy Coca-Cola products for their friends, family, and is just part of a necessity of
drinking a product. Goods bought in consumer markets are categorized in several ways. Here is
an example of one; fast-moving consumer goods are products such as, high volume, low unit
value, fast repurchase. Coca-Cola Crispade can definitely fall into this category of fast-moving
consumer goods. Coca-Cola Crispade can be sold anywhere. This allows the following topic of
another organizational category that is the buyer’s market. This means that within a situation that
supply exceeds demand, giving purchasers an advantage over sellers in price negotiations. Even
though the term “buyer’s market is mostly used within the real estate world, it sure applies to any
type of market when there is more product available than there are people who want to buy it.
Another concept to consider is the seller’s market too. In this type of situation there are demands
that exceed supply and the owners have the upper hand over the buyers in price negotiations”
(Buyer’s Market, 2012).
Influencing Purchasing Decisions
To understand consumer’s behavior Coca Cola must understand the factors that influence
the consumer’s purchasing decision. The factors influencing decisions made by Coca Cola’s
consumers include: economic needs, psychological variables, social influences, and the
purchasing situation. Researching these factors will help direct Coca Cola’s marketing strategy.
Economic need is a major factor that influences consumer decisions. Separating the consumer
from their money requires offering a product they consider valuable. To make a product valuable
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to the consumer Crispade must meet the consumer’s economic needs. For Crispade to meet the
consumer’s economic needs the product must be convenient, tasteful, legitimate, and priced
affordably. Ignoring the economic needs of the consumer could result in the consumer viewing
the product as expensive and unnecessary – a luxury.
Psychological influences factor into a consumer’s decision to buy a product. Coca Cola’s
consumers, like all consumers, experience a hierarchy of needs “The third factor, social
influences, determines how consumers make decisions based on relevant others. The last factor
to consider is the reason a purchase is made, consumers make purchases for various reasons,
time constraints, a quick solution, or a convenient item can alter a person’s decision to buy a
product they otherwise would not buy” (Perrault, Cannon & McCarthy, 2009). The marketing
strategy behind Crispade is to promote a product, which is convenient, affordable, and available.
Marketing Strategy Factors
Crispade it is a combination of two different products produced for the customer. The
drink taste like a soft drink while, giving energy to its consumer. The product is launched by a
well establish company who has extensive experience in the beverage market field. Crispade also
contain B3, B6, and B12 vitamins and is a positive selling point for this beverage because more
people are looking into the nutrition in any products. The buyers and consumers of Crispade are
Coca cola consumers looking for a refreshing product from the organization. Every person who
consumes Crispade gets an opportunity to experience the taste of the new drink hence marketing
efforts to project Crispade will be to target the entire population.
As mentioned before, Crispade must meet potential customers’ economic needs. To fully
take advantage of this in the marketing plan Coca Cola will appeal to the consumers’ senses.
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Crispade will offer the consumer two factors. It is a sports drink that offers hydration and at the
same time has the satisfaction of a carbohydrate drink.
The first part that will affect the marketing strategy is Crispade’s ability to offer energy.
The target customer of this will be athletes and those who exercise. Because the new drink has
the capability to re-energize it will appeal to those who work out their bodies. Crispade will also
offer this group something new. Energy drinks that taste like a soda.
Because Crispade is energy drink that will appeal to customers who like soft drinks but
want to have a healthier option. The drink offers B3, B6, and B12 vitamins in its ingredients.
The market strategy will contain attempts to push this as a soft drink that offers customers a
healthier choice and not affecting the taste of the drink. Appealing to the sense of the consumers
is a marketing strategy that can prove very successful. Consumers will enjoy that the drink taste
superiority, while also benefiting their bodies with valuable vitamins.
The last factor that affects the marketing strategy is the price of the product. Consumers
may be hesitant to pay for an expensive drink. By incorporating an energy drink, Powerade with
a soft drink, Sprite, the price will offer the consumer of equal prices to these products. To help
push the introduction of Crispade it would benefit the marketing strategy to offer value prices or
offer coupons for free samples. This would draw consumers looking for bargain prices, which is
a plus in today’s economy.
Current competitors and landscape
As, mentioned previously on Team D marketing plan phase I, Crispade, and Crispade
Zero are refreshing product with a taste of fruit punch, mixed with a carbonated crisp grapefruit,
lemon, and lime taste while still getting the benefits of rehydration, from the minerals, vitamin
B3, B6, and B12 that support the energy and metabolism of consumers during workouts and
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intense activities. Analyzing the competitive landscape for Crispade and Crispade Zero, some of
the competition found is other drinks with similar ingredient, such as Powerade Zero, Samurai,
and Red Bull. They are as well in the portfolio of The Coca-Cola Company, which offers “more
than 3,500 products in over 200 countries” ("The Coca-Cola Company," 2006-2012).
In North America, one current competitor could be Powerade Zero. Even though is not a
carbohadronated drink, this drink “is a great-tasting electrolyte-enhanced sports drink formulated
with the ION4 Advanced Electrolyte System to help replenish four key electrolytes lost in sweat:
Sodium, Potassium, Calcium, & Magnesium. Powerade Zero also contains Vitamins B3, B6, and
B12 to help the body metabolize energy from food” (“The Coca-Cola Company," 2006-2012).
Samurai is an energy drink available in Asia; it is a stimulating new carbonated drink made to
bring back levels of energy of mind and body. Samurai is also packed with vitamins but does not
contain a crisp grapefruit, lemon, and lime taste. Red Bull also contains “carbonated water,
artificial colors, sodium citrate and instol. Carbonated water provides the carbonation in Red
Bull, artificial coloring makes it yellowish, and sodium citrate is a preservative, and inositol,
which is a carbohydrate” ("Resource Nation," n.d.). This product also contains B-group vitamins
that support the energy and metabolism of consumers. Nevertheless, it does not provide a crisp
citrus taste.
Every product or service has a distinctive strengths, and weakness. Emphasizing and
building upon the weaknesses, and strengths of Crispade and Crispade Zero’s competitor’s
increases productivity and market share.
Conclusion
Marketing a new product takes time, research, marketing strategy, and tactics to
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introduce products successfully. Marketing teams must segment the population to determine
what consumers would benefit the most from the product. The team needs to research the
product to ensure it meets the Food and Drug Administration guidelines and the product does
what the company is advertising, in the case of Crispade, the product includes vitamins and
minerals while hydrating consumers after intense activities. The marketing team investigates the
competition to develop strategies and tactics to show their product to be the best and entice
consumers to try it. Finally the marketing team recruits buyers to see the new product, for
