Marketing Mix free essay sample

Author note with more information about affiliation, research grants, conflict of interest and how to contact SWOT Analysis of Botox SWOT analysis Strengths: †¢ Allergan has the possibility for dominance on several niche markets because of the uniqueness and appeal of their product. †¢ The main consumers of the product Botox are celebrities from many fields, which include actors and television artists. Thus, the element of celebrity endorsement is a great advantage. Facial beauty is a major concern in the modern world and the ability of a product to remove wrinkles and black marks on the skin will likely work as an element of strong attraction for customers. Botox also cures migraine, constant neck and back pain, extreme sweating, and possible convulsive disorders. These are major attraction for enticing customers to the product. The appeal becomes all the more significant because the consumers will think of it as a panacea for countering various ailments. There are many reasons why company decided to sell its product in international market. The prospect exists to sell Coca-Cola worldwide, because Coca-Cola is a product which can be used by everyone irrespective of age and gender, all over the world. Marketing globally demand the company to have a marketing team in line with a countrys consumers so effective sales can be made and good relations with the abroad key employees can be maintained (Arthur A. Thompson Jr. , A. J, 2005). This paper contains an analysis of the marketing mix and promotional mix strategy of Coca-cola adopted in the Philippine setting. I chose the product because it is one of the largest and well-known beverages in the world. The rapid growth and the company’s image in the market impressed me and pushed me to discuss the topic. MARKETING MIX OF COCA-COLA Marketing is the art and science of selling. Ingredients for a good marketing (according to Philip Kotler) are the 4P’s: product, price, promotion and placement. An effective marketing program combines harmoniously all elements of the marketing mix. Marketing mix is the main instrument of the company for obtaining strong positioning on the concerned markets. A. Product Product refers to more than just physical objects or goods that you can own and take home. The authors of the paper: â€Å"Marketing. Explanatory Dictionary† (Florescu, et al. , 2003, p. 537) define product policy as a decision adopted by manufacturing or commercial companies regarding the size, structure and evolution of the range of goods and services (Lefter, et al. , 2006, p. 375, 405). Product policy is often compared with â€Å"the heart of marketing†. It has a direct connection with the other elements of the marketing mix. Coca cola is the leading provider of soft drinks not only in the Philippines but also around the world. In 2010, it not only had no. 1 selling soda with regular Coke, but its Diet Coke brand outpaced Pepsi for second billing. It has a number of brand variants, including Minute Maid, Royal, and Sprite. The company also produces fruit juices, mineral water, and sports drinks. Another aspect is its packaging. Coca cola offers variety of its products ranging from small (300 mL) to upsizes (1. 5 to 2 liters), depending on the consumer’s needs. Packaging also promotes the product and distinguishes it from the competition. B. Price Price is a market instrument and an index of the economic and social reality. Price is the only marketing mix variable which leads to profits, the others are generating only expenses and investments. Price is a very flexible element of the mix and it can be changed rapidly, unlike the product characteristics and the placement activity. Price is very important part of marketing mix as it can affect both the supply and demand of Coca cola. The price of Coca cola products is one of the important factors in customer’s decision to buy. The main objective of the price strategy is to make a product economical to everyone and not spending too much for a drink. Its long term pricing strategy is to maintain its affordable price which really appeals to the vast middle class market. Coca cola sets a price that is attractive to the customers but provides a good level of profit. Prices of Coca cola start at 10 pesos to 50 pesos per bottle. C. Placement Placement’s role is to assure the necessary balance in the market primarily between demand and supply and between producers and consumers. Another role of the distribution is to streamline the buying – selling processes. The concept of placement means getting products to customers in strategic way. Coca cola’s distribution process is a key element of its success. The company products are available in cans and bottles in supermarkets, retail stores, and vendo machines. Additionally, the company provides supplies for drinks in many restaurants all over the country. The ease and convenience of getting to the product is important to customer’s loyalty. D. Promotion In today’s competitive environment, effective communication with the target market is essential for a business to succeed. Promotion is another marketing mix designed to inform the people about the product. It is also used to persuade the customers to try a new product, or buy more of an old product. Coca cola invest millions of dollars a year in advertising and promotions to maintain its position in the industry. The Coca-Cola Company has launched â€Å"Open Happiness†, an advertising focuses building on the award-winning â€Å"Coke Side of Life† campaign. The new tag line, seen in this series of print advertisements, will serve as a platform for all integrated marketing for the Coca Cola brand around the world, tying together the pleasure of opening up a drink and the satisfaction of sharing with others. This campaign invited people to refresh, despite the difficulties and stressful situations every day, with a Coke and continue to enjoy the simple pleasures of life. Through this, Coke enables the customers to view the product as part of their daily life. Advertising through television, radio, print media, and internet are great ways of Coca cola in promoting their products. Although advertising is usually very expensive, it is the most effective way of looking for potential customers of Coca-cola products. PROMOTIONAL MIX Promotion is all about communication. It is the way businesses make their products known to their customers. The main goals of promotion are to ensure that the customers are aware of the existence of a product, to persuade them that their product is a lot better than the competing product, and encourages the customers to buy or avail the product. It is important to know that businesses used more than one method of promotion which is referred to as the promotional mix. Coca cola uses integration of the different promotional mix to meet the requirements of all target customers which turn into a gateway to success. The following are my analysis of the different promotional strategy they utilize. A. Advertising Coca cola mainly does national advertising, an aggressive advertising targeting a large audience. They introduce different themes and concept to introduce and advertise their own product. They use big names in the showbiz industry as the brand ambassadors of the company. They also created catchy and memorable slogans for many years. With this, they build brand image and awareness. Commercial advertisement on television of the product focuses on friends and family relationship, showing their strong bonds with Coke. Since these values are part of our culture, Filipinos immediately catch up to it. The presence of Kathryn Bernardo, Julia Montes, and Enchong Dee, as well as, Santa Claus every Christmas, makes the product more appealing to people especially young and teens. The company’s print advertising includes posters, stickers, billboard, and hoardings, even in magazines. They have many sites around the country for their billboards. Printed advertisements are usually found beside roads, buildings, supermarkets, stores, walls, and buses. As well as, coolers, freezers, and display racks. For permanent satisfaction of consumer’s needs, Coca cola has to maintain the high standards and high quality of its products. Over the time, Coca cola spent millions of dollars developing and promoting their brand name, resulting in worldwide recognition. Coca cola’s red and white colors and special writing are examples of its trademarks. B. Direct Marketing For direct marketing, Coca cola has partners with different restaurants, movie theatres, and other company to carry its product. When a customer asks for a drink, the only brand they can offer is Coke, which reminds them of the product and forces them to consume it. By doing this, the restaurant keep in purchasing the product over and over again. Examples are Jollibee, McDonalds, KFC, etc. Coca cola also sponsors different activities especially with sports. C. Internet Marketing Coca cola also uses the internet to promote its product. The company has their own website (www. cocacola. com. ph), which enables the customers to navigate and explore on the different sections of the company. The company also uses various social networking sites like Tweeter, Facebook, and Youtube to connect with their customers. This kind of marketing helps the company to reach every people around the world. D. Sales Promotion A sales promotion is an activity that is implemented to boost a service or product temporarily. Coca cola does sales promotion by tying up with Bench in their â€Å"Share Happiness Wear Happiness Promo†. Another is under the crown schemes like â€Å"Sarap Under the Cap Promo† which in every purchase of selected coke products a customer can have a chance to win free meals or discounts in Jollibee. Getting limited Coca cola items in exchange of Coke crowns or cap is also a way of promoting. By having partnership with different companies, Coca cola increases their sales. E. Public Relations Word of mouth can also be an advantage for the company. When a student purchase a new product of Coca cola and enjoys it, he can tell others about the new product and the benefits of it. This will encourage others to purchase the product too, resulting to increase sales. F. Personal Selling The company hired professional individuals responsible in communication, selling, and building good relationship to its client or prospective client. Each person will be assigned to a particular region or place and promote their product to different customers. These people maintain their relationship with their customers for continuous business with them, thus building goodwill to the company. EFFECT OF MARKETING STRATEGY OF COCA COLA The Coca cola is one of the recognizable brands around the globe. It is widely regarded as one of the booming organizations achieving huge branding success. The company focused on building brand that is instantly recognizable and highly appreciated in costumer’s mind. Today, Coca cola is a corporation with strong brand identity and image. Strong brand image of Coca cola is achieved through consumer’s loyalty. This loyalty entails the purchase frequency that is improved by effective advertising and marketing strategies. The â€Å"Open Happiness† slogan helps the company attract more consumers as it gives them the idea of â€Å"living positively†. Filipinos consider Coca cola as part of their daily lives – in every meal, at school, at work, and special occasions. In conclusion, Coca-Cola is a successful product, not only because it has built a recognizable logo and brand name, but mostly because it has managed to position its brand in the market. In doing so, it achieves to develop a brand personality and distinguish itself from competition, while offering consumers a clear view of its brand values. This leads to increased brand loyalty and satisfaction.