Discuss about the Marketing Management Coca Cola Amatil.
This aim of this report is analyzing the marketing management at Coca Cola Amatil, Australia. The report mainly focuses on five issues or areas of marketing of the company. In the beginning, the report provides an overview of the performance of the company as well as the industry along with the mission, values and communication patterns at Coca Cola Amatil. After that, the report focuses on the 5Cs of the company and tries to identify the current situations of the 5Cs of the company. The report also states about the way through which company collects the information about its 5Cs. On the other side, the report also recommends and justifies the STP strategies and marketing tactics.
Insofar as offering the beverage to the world is concerned, Coca-Cola Amtail seems to occupy the fifth position and also holds the first position in providing the non-alcoholic drinks to the consumers in the whole Asia-Pacific region (Castellion and Markham 2013). This organization has its hold over six different countries such as Australia, Papua New Guinea, Samoa, New Zealand, Indonesia and Fiji. In 2014, this organization is supposed to earn around $ 81.03 billion along with securing revenue of $5.14 billion (Ccamatil.com 2017). It has around 15500 employees including its different locations (Ccamatil.com 2017). This organization offers both non-alcoholic products like diet coke, Coca-Cola, Kiwi blue etc and alcoholic beverage products namely Jim Beam, Basil Hayden’s, Booker;s etc to its customers so that it can approach to a wide range of people. It also provides food items like Perfect fruit, SPC ardmona, Weight watchers etc to its consumers as the side dish with offered beverages (Gilmour et al. 2013).
The chief mission of this organization is to provide the consumers best feeling at the time of their consumption (Ccamatil.com 2017). It basically promotes the happy moments and optimist feelings of people. This brand also promotes the importance of family and togetherness. In this way, it aims to create a difference among other beverage organization. The slogan of this company “Taste the feeling” again promotes the enjoyment that one can have at the time of spending the small and ordinary moments of life (Ccamatil.com 2017).
This organization mainly tries to make their customers feel the taste they offer. In order to effectively communicate with their consumers, this brand basically stresses upon the improvement of their refreshing tastes with which they can provide their consumers a sense of relief in this huzzle buzzle of life (Huang and Rundle-Thiele 2015). By providing various options among the non-alcoholic and alcoholic beverages, Coca-Cola Amtail tries to provide their consumers variety in their familiar drink. It aims to improve their taste with the passing time in order to meet the changing taste of their consumers (Ccamatil.com 2017). Coca-Cola Amtail also tries to leave a good and positive impact by fulfilling their corporate social responsibilities and by providing assistance in developing sustainable community. In order to acquire handsome market share, this organization puts importance upon understanding the needs and demands of their customers. They try to apply the feedbacks for improving the taste and packaging system of their offered products (Ccamatil.com 2017).
This organization basically uses their innovation power for improving their marketing strategy. After 1950, this organization rapidly spread their business in various territories of Australia (Ccamatil.com 2017). However, at that time, it only supplied beverages from one location to different places of Australia. At present, it also improves its delivery system by developing an effective transport system (Kotler et al. 2014). On the other hand, it also stresses importance upon changing their bottling system with the changing time so that it can create curiosity among the consumers regarding their product. In order to deliver the products on time, it adapts a high speed packing technology. It also helps to increase its sales rate because better supply system automatically creates the need for more demand among consumers.
5Cs of a company help understanding the 5 major areas of marketing and these are – company, customers, competitors, collaborators and climate (Angle 2016). In order to analyze the current market position of Coca Cola Amatil, 5Cs analysis is very important. Below, the 5Cs analysis of Coca Cola Amatil is shown:
Company – The current market position of Coca Cola Amatil is much strong. The primary strength of the company is its strong distribution network. The company is very conscious about maintaining the availability of its products (Ccamatil.com 2017). Apart from that, high profitability and revenue are also the major strengths of the company. However, the low diversification is the major weakness of the company. At the same time, the poor water management is another big weakness of the company (Ccamatil.com 2017). If the overall market scenario is analyzed, then it can be identified that the market demand for the products of Coca Cola Amatil is increasing, which indicates the growth opportunity for the company (Jackson and Ahuja 2016). At the same time, the advanced infrastructure provided by the government enhanced the business development scope for the company. However, high market competition and complex government’s regulations have creased threats for Coca Cola Amatil. The high rate of tax has created another threat for the organization (Collins et al. 2016).
Customers – Coca Cola Amatil has huge customer base in Australia as well as in other countries. The customer range of the company includes different types of people. If the product range of the company is considered then it can be clearly understood that the company serves the people who are health conscious as well as who are very conscious about the taste of the soft drinks (Corea 2016). The price range of the products of Coca Cola Amatil clearly denotes that most of the customers of the company belong from middle income group of people.
Collaborators – The Company always maintains good relationship with its collaborators like, its suppliers, distributors and other partners. As stated above, the company has strong distribution channels, which means the company has good relationship with them. Company is currently dealing with the suppliers, who provide high quality materials and able to fulfill the needs of the company (Abwanzo 2016).
Competitors – The major competitor of Coca Cola Amatil is Pepsico Inc. Apart from Pepsico, there are Nestle Waters France and Dr pepper Snapple Group, Inc. All of the competitors of the company have large product range and they also maintain the quality of their products (Gonski and Niesche 2016). Due to this, the company faces high level of threats from its competitors. However, there is no such big threat from the new entrants.
Context – Apart from the above mentioned four factors, there are also some other factors that affect the business of Coca Cola Amatil. These factors are – legal, political and technological. The legal boundary is very strict and the political environment in Australia is favorable for the business of the company (Corea 2016). On the other side, as Australia is technologically advanced, the company gets many scopes for its business improvements.
The company collects the information about the 5Cs through market research. The market research is done through surveys. The marketers of the company conduct the market surveys with the customers or the people in Australia. Through the market survey, the marketers of Coca Cola Amatil got the information about actual demand of the customers (Isaacs and Dixon 2016). The marketers have identified that currently, the customers want the soft drinks with some unique flavor then than orange, mango or lemon (Ccamatil.com 2017). At the same time, the customers also want some different packaging, which will be more innovative.
The market research has also indicated that Pepsico Inc is the competitor that poses high threat to Coca Cola Amatil. The product range of Pepsico Inc is as big as Coca Cola Inc (Noviawati and Witjaksono 2016). There is no such difference between the products and price range of these two companies. Moreover, Pepsico has diversified its business with some new food products, which has increased the customer base of the company (Hamzah and Sutanto 2016).
The business context of Coca Cola Amatil is changing. The technological innovation or advancement helped the company improve its business performance (Ccamatil.com 2017). The company has also implemented advanced technology for improving its communication network so that proper relationship can be maintained with its stakeholders (Isaacs and Dixon 2016). Apart from the technological advancement, the marketers have also identified that the adoptability of the people in Australian Societies has also increased. Due to this, there is high scope for the business diversification of Coca Cola Amatil.
The marketers of Coca Cola Amatil have also identified that the collaborators of the company play vital role in the business process (Ccamatil.com 2017). For example, the availability of the products depends on the efficiency or effectiveness of the distributors. If the distributors are not effective enough, then maintaining the availability of products is not possible for the company. Similarly, the suppliers of the company help maintaining the production level. Smooth flow of the raw materials from the suppliers makes the business process easier.
In order to assure standard profit and sale amount, the organizations aim to stress special importance upon market segmentation. Though Coca-Cola Aimtail does not depend on market segmentation as it mainly tries to approach a wide range of consumers, it mainly focuses upon the particular age group of 13-32, mainly the mobile and young generation who try to find an alternative in the fast moving lifestyle (Melewar and Dennis 2014). It considers people of each age group as their potential customers but also considers the young generation as the most potential one as it covers almost 56% of the total potential consumer number. Moreover, in order to approach huge number of consumers, this organization focuses upon developing partnerships with McDonalds, KFC, other Australian restaurants etc. It also helps them to maintain their target profit amount.
In this case, demographics and psychographics market segmentation strategy can be applicable. As demographic market segmentation refers to the age group, gender etc of a particular location, Coca-Cola Amtail can continue their present target marketing strategy by selecting the young and mobile generation as the potential one. They can also improve them by providing variety in taste and packaging style (Miquel-Romero, Caplliure-Giner and Adame-Sánchez 2014). On the other hand, with the help of psychographic segmentation, the management of this organization tries to understand the common interest and influential factors of the consumers, especially the young generation which is their potential customers. After collecting the information, this organization can utilize them for improving the quality of their product by further changing the taste and the packaging system (Tadajewski 2016). It main focus for this strategy should be on influencing the psychology of the young people by providing them a refreshing message about life so that they can be encouraged enough to be attracted toward their products.
The brand of Coca-Cola Amtail mainly focuses upon providing their product globally along with Australia. This brand has already become a prominent name in the beverage industry. In order to maintain the position, it needs to establish their products as exceptional one among other drinking products. It also needs to develop a metal relationship with its consumers by regularly evaluating their feedbacks on their official sites along with their social networking sites (Sharma and Lambert 2013). It needs to satisfy the needs and demands of the local Australian consumers so that they can successfully progress for satisfying global consumers by securing their home market profit level. By providing the consumers a refreshing message about the enjoyment of life, this organization can position their products as positive spirit for life. They should position their product as an essential one for everyday life. They can also improve the positioning of their brand by promoting healthy lifestyle for which they need to include low calorie food products to their consumers (Tadajewski 2016). In this way, they can promote their brand as low-calorie soft drink provider in the global beverage market. It can also utilize less sugar level in their products without changing the taste much which will help it to approach to the diabetic consumers as well.
As per the above discussion, it can be said that the management of Coca Cola Amatil requires improving its marketing tactics. The management of the company can do this by focusing on the 4Ps of marketing (Kotler et al. 2014). The company can take the following 4Ps strategies:
Product – The management of the company can diversify its product range and introduce some new products in to it. The company can include the products like, potato chips, corn chips, biscuits and cookies in to its product range. This will help the company increasing its customer base. It can attract the children also by introducing the chips and cookies.
Price – The Company must maintain the low price level. The economic pricing strategy will be the best pricing strategy for the company. This strategy will help the company attracting not only the middle class people, but also it will help attracting the people of upper middle income group and high income group.
Place – The Company may try to place its products in each urban, sub-urban and rural place in Australia. If the company places its products in wide range of areas, then it will help the company attracting more customers. However, in this case, maintaining their effective distribution channel will be essential.
Promotion – The Company can promote its existing and new products with the help of social media as well as television advertising. These two promotional tools are very effective in the current business context. The level of competition is very high in current scenario. Therefore, it is very important for the company to reach more number of people at minimum possible time and this can be done through television and social media marketing. Apart from the television and social media marketing, the company can also use the sales promotion strategies while promoting its products in the market. The company can provide special discounts or offers or free gifts with some of the products especially the new products of it. This will capture more attention from the people.
Therefore, it can be said that if the management of Coca Cola Amatil applies the above mentioned strategies of 4Ps, then it can be expected that the revenue and the profitability of the company will grow further.
Conclusion
In this study, it has been identified that Coca Cola Amatil is one of the largest organization in the beverage industry in the international market. In this study, it has been identified that the mission of the company is providing more scopes to the people for enjoying their life. At the same time, the study has also indicated that the customers of it want more varieties in its products. Therefore, the company must increase its product range. The study has provided some recommendations for improving its current marketing mix as well as business performance. As per the recommendations, the company must introduce some new products like, cookies or chips and promote those through social media and television advertising and sales promotion. The company must maintain economic pricing strategy and place its products in every place in Australia.
References
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