Question:
Discuss about the trading activities and operations of Coca-Cola Amatil.
The report talks about the trading activities and operations of the company. It tells that how is dealing with various products and services. It explains the SWOT analysis and Pestle analysis to beat the competitors in the market. Further, the report explains that how the company is using marketing mix strategy within the organization. In addition, it explains the key characteristics of the consumer behavior in the global market. It describes that how the market influences the buying behavior of the consumers.
Coca-cola Amatil is one of the largest drink beverage companies in the Asia Pacific region. CCA operates and manages its operations and business activities in six countries such as Indonesia, Papua, Nez Zealand, Australia, Fiji, and Samosa. It was founded in 1904 with its headquartered is located in Sydney Australia (Kähärä, 2009). There are approx 14,700 employees employed in the company. The firm is dealing with various products such as sports water, energy drinks, iced tea, spring water, soft drinks, flavored milk, tea, coffee and vegetables snacks and products around the world. In today’s era, the company is expanding and increasing its profit and revenue across the world. The main aim of the company is to maximize and increase the revenue and profit while maintaining the sustainability of the beverage industry (Ouppara and Sy, 2012). The company is using effective and unique leadership styles to motivate the employees within the organization. The core values include integrity, passion, respect, accountability, collaboration, diversity, leadership and quality. The company maintains sustainable human resource management to attract more candidates in the market (Andini and Simatupang, 2014).
The marketing and situational analysis play a vital and integral role in Coca-Cola Amatil to gain the competitors benefits across the world. PepsiCo, Golden circle and Nudie foods Australia are the main competitors of the CCA. The company can use SWOT analysis and PESTLE analysis, Porter five forces model to evaluate and analyze the plans, policies, and strategies of the competitors across the world (Guthrie, Cuganesan and Ward, 2010).
Pestle analysis is the strategic tool to evaluate and analyze the external environment of the company. Pestle analysis comprises political factors, economic factors, and socio-cultural, technological, environmental and legal factors. These factors affect the business activities and operations adversely. The pestle analysis has been discussed below (Andini and Simatupang, 2014).
Political factor: The political factors include political instability, the risk of military invasion, wage legislation, and trade regulations also affect the success and growth of the company. These factors must be managed and controlled by the company to gain various competitors advantages around the world.
Economic factor: The economic factors include saving rate, interest rate, unemployment rate, economic growth rate, inflation rate, saving rate and foreign exchange rate. These factors also affect the trading activities and operation of the firm. The company should consider and analyze these factors to overcome on the competitors in the world (Handayati, Simatupang and Sridharan, 2011).
Socio-cultural factors: The socio-cultural factors include demographic factors, culture, values, attitudes and religious of the employees. CCA must focus and evaluate these factors to beat the competitors in the market.
Technological factor: The technological factors also influence the growth and success of the company. The rate of technological diffusion and changes in the technology are the major technological factors which affect the growth of the company adversely (Jones and Reid, 2010).
Environmental factor: The environmental factors include climate change, waste management in beverage and food sector, weather and pollution. Entire factors influence the position of the CCA adversely in the global market. Therefore, the company must identify these factors to overcome on the competitors across the world.
Legal factors: These factors also affect the sale and revenue of the company negatively. The various rules and legislation which have been made by government affect the growth and success of the CCA globally. These factors should be managed and analyzed by the CCA to expand and flourish its business globally (Setyawati and Santoso, 2012).
SWOT analysis plays a vital and crucial role to attain the competitors’ advantages in the global market. SWOT analysis shows strengths, weaknesses, opportunities, and threat of the company. It is the strategic tool to analyze and evaluate the risk and other key challenges of the market. The SWOT analysis has been discussed below (Hassan, Amos, and Abubakar, 2014).
|
Strengths |
Weaknesses |
|
· The domestic market is available to explore and expand the business activities and operations globally. · Experienced business units are the strength of the CCA. · The growth rate of the CCA is high and it also helps to reduce the labor costs. · CCA provides monetary assistance to the employees around the world. · CCA fulfill the needs and wants of the customers than their competitors. |
· Brand portfolio is the major issue in CCA. · The future profitability and growth are not possible in CCA due to various competitors exist in the market. |
|
Opportunities |
Threats |
|
· The global market is available for selling the products and services of the company. It is one of the significant opportunities for the company. · The company is introducing new food and beverage products globally. · The demand for the beverage products is increasing day by day. |
· The company is charging high prices for the beverage products. · There are various competitors exist in the market. |
PepsiCo and Nudie food Australia are the main competitors of the company. The marketing mix of the PepsiCo has been discussed below (Assiouras, Ozgen, and Skourtis, 2013).
Product: The PepsiCo is the major competitor of the Coca-Cola Amatil. The PepsiCo is dealing with various products such as energy drinks, rice snacks, soft drinks and breakfast bars. It uses product mix strategy to gain the competitive advantages in the market.
Place: The PepsiCo uses the universal network for distributing its products and services to the customers. The retailers and online merchandisers are the main distribution channels of the company (Huang and Sarigöllü, 2014).
Promotion: The Company uses various promotion strategies such as direct marketing, advertising, public relations and sales promotions etc. Advertising is the foremost strategy to maximize the revenue and profit of the company.
Price: PepsiCo uses pricing strategy to differentiate its products from the Coca-Cola Amatil products. It uses hybrid value pricing strategy and market-oriented pricing strategy to increase the sales of the company.
Nudie food Australia is another competitor of the Coca-Cola Amatil. The marketing mix of the Nudie has been discussed below (Oplatka and Hemsley-Brown, 2012).
Product: The Company is dealing with food and beverage products which include fruits, juice, ice-cream, and soups. Thus, it affects the activities and operations of the Coca-Cola Amatil adversely. In this way, the company is becoming successfully day by day.
Place: The Company is making effective and unique strategies to distribute its products and services in the Australia. The products of the Nudie are sold in more than 6000 outlets in the Australia (Ryu, Lee and Gon Kim, 2012).
Price: The Company fixes the high prices of the products due to the high quality of the products and services. It does not adopt low price strategy. Thus, it is the biggest benefit for the Coca-Cola Amatil to overcome on the Nudie food.
Promotion: The Company is investing a huge amount to promote its products globally. By using effective promotion strategy, the company is trying to beat the competitors around the world.
The marketing mix of the Coca-Cola Amatil evaluates and analyses the brand of the company. The marketing mix includes the 4 Ps (product, price, place, promotion). By using marketing 4Ps, the company is overcoming the competitors. The marketing mix of the Coca-Cola Amatil has been discussed below.
Product: The Coca-Cola Amatil provides various types of soft drink and beverage products. The products of the company are sold in various sizes and packaging. By using product strategy, the company is trying to differentiate its products from the competitor products (Assiouras, Ozgen, and Skourtis, 2013).
Price: The firm is using the pricing strategy to attain competitive advantages in the market. The company sets the reasonable and appropriate prices of the products to attract more customers across the world. It fixes the different prices for the different products.
Place: It is the important marketing strategy of the company. CCA is making unique and effective place strategy to distribute its beverage products globally. Under this strategy, various distribution channels are used by the company.
Promotion: Various advertising and promotion strategy are used by the company to maximize and enhance the number of customers in the world. The company uses social media channels to promote the product of the company.
Now it can be said that marketing mix of the CCA is very effective and unique. It provides various competitive benefits across the world (Oplatka and Hemsley-Brown, 2012).
A consumer is a person who buys the products and services for the personal use or consumption. They do not buy the products and services for manufacture or resale purpose. The characteristics of the consumer buyer have been discussed below (Rucker, Galinsky and Dubois, 2012).
Information search: A consumer is the main success factor to maximize and enhance the revenue and profit of the firm. Therefore, consumers play an integral role in CCA to increase the sale of the organization. The consumers collect information and knowledge while buying the products and services within the organization (Yeung and Yee, 2012).
Brand loyalty: It is another characteristic of the consumer behavior in the global market. Brand loyalty is the tendency of the consumers which affect the behavior of the consumers while buying the products and services of the company.
Price elasticity of demand: It is one of the important characteristics of the consumers. It affects the demand and supply for the products around the world. It also affects the buying behavior of the customers in the global market.
Personalized products and services: It is a significant feature of the consumer buying behavior. The consumers use the products for personal use thus; they check and evaluate the prices of the products and services. These are the features of the buying behavior of the consumers around the world (Paul and Rana, 2012).
Awareness: It is one of the significant characteristics of the consumers. The consumers check and evaluate the quality and prices of the products while taking the buying decisions. They buy the right products at right prices due to effective awareness. Various awareness programs are conducted by the company to increase the awareness of the consumers.
Along with this, the consumer buying behavior depends on the various factors such as marketing campaigns, economic conditions, personal preferences, and group influences. These factors influence the purchasing power of the consumers from various ways. CCA should evaluate and analyze the needs, requirements, and expectations of the consumers to maximise the sales and revenue of the firm. Further, the organisation must maintain an effective and dynamic relationship with consumers across the world. It is the responsibility of the employees that they provide the right information to the consumers in the market (Reed et al, 2012).
Conclusion
On the above discussion, it has been evaluated that CCA is one of the largest brands in the world. The company is offering several beverage products to the customers globally. Further, the firm uses effective and unique strategies to overcome the competitors in the world. PESTEL analysis, SWOT analysis are done by the organisation to evaluate and analyze the position and image of the competitors. The company uses marketing mix strategies to differentiate its products and prices from the competitor products and prices. In this way, the company is able to gain the competitors advantages in the market. It also helps to accomplish the long-term mission, objectives and goals of the company. Along with this, the company should focus on the marketing strategies to reduce the risk and key issues of the global market.
References
Andini, R.A. and Simatupang, T.M., (2014). A process simulation of inventory planning and control for Minute Maid Pulpy at Coca-Cola. International Journal of Logistics Systems and Management, 17(1), pp.66-82.
Assiouras, I., Ozgen, O. and Skourtis, G., (2013). The impact of corporate social responsibility in food industry in product-harm crises. British Food Journal, 115(1), pp.108-123.
Guthrie, J., Cuganesan, S. and Ward, L., (2010). Social and Environmental Reporting: The Australian Food and Beverage Industry.
Handayati, Y., Simatupang, T.M. and Sridharan, R., (2011). An analysis of collaboration between Coca-Cola and Carrefour using drama theory. International Journal of Value Chain Management, 5(1), pp.1-24.
Hassan, D.N., Amos, A.A. and Abubakar, O.A., (2014). An evaluation of marketing strategies undertaken by Coca Cola Company as a multinational corporation in Nigeria. Journal of Business and Management, 3(2), pp.5-10.
Huang, R. and Sarigöllü, E., (2014). How brand awareness relates to market outcome, brand equity, and the marketing mix. In Fashion Branding and Consumer Behaviors (pp. 113-132). Springer New York.
Jones, S.C. and Reid, A., (2010). Marketing to children and teens on Australian food company web sites. Young Consumers, 11(1), pp.57-66.
Kähärä, P., (2009). Marketing research for Coca-Cola Thailand Limited: implementation of Fanta Free in Thailand.
Oplatka, I. and Hemsley-Brown, J. eds., (2012). The management and leadership of educational marketing: Research, practice and applications. Emerald Group Publishing Limited.
Ouppara, N.S. and Sy, M.V.U., (2012). Quality of Work Life Practices in a Multinational Company in Sydney, Australia. Procedia-Social and Behavioral Sciences, 40, pp.116-121.
Paul, J. and Rana, J., (2012). Consumer behavior and purchase intention for organic food. Journal of consumer Marketing, 29(6), pp.412-422.
Reed, A., Forehand, M.R., Puntoni, S. and Warlop, L., (2012). Identity-based consumer behavior. International Journal of Research in Marketing, 29(4), pp.310-321.
Rucker, D.D., Galinsky, A.D. and Dubois, D.,(2012). Power and consumer behavior: How power shapes who and what consumers value. Journal of Consumer Psychology, 22(3), pp.352-368.
Ryu, K., Lee, H.R. and Gon Kim, W., (2012). The influence of the quality of the physical environment, food, and service on restaurant image, customer perceived value, customer satisfaction, and behavioral intentions. International Journal of Contemporary Hospitality Management, 24(2), pp.200-223.
Setyawati, D. and Santoso, I., (2012). Value Chain Analysis on the Logistics Management as the Basis for Strategy Formulation to Increase Customer Satisfaction (Case Study in PT. Coca-Cola Amatil Indonesia-Plant East Java). Agroindustrial Journal, 1(1), p.28.
Yeung, R. and Yee, W.M., (2012). Food safety concern: Incorporating marketing strategies into consumer risk coping framework. British Food Journal, 114(1), pp.40-53.
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