Done by: Nejra Bučo, Fehim Šehić & Mersiha Ruvić

Strategic Planning for Competitive advantage

• Strategic planning- the managerial process of creating and maintaining a fit between the organization's objectives and resources and evolving market opportunities.

• Marketing plan- a written document that acts as a guidebook of marketing activities for the marketing manager.

Why write a marketing plan?

• Provides a basis for comparison of actual and expected performance

• Provides clearly stated activities to work toward common goals

• Serves as a reference for the success of future activities

• Allows entry into the marketplace with awareness

Elements of marketing plan

Defining the Business Mission statement:

• Answers the question, “What business are we in and where are we going?”

• Focuses on the market(s) rather than the good or service

• Strategic Business Units may also have a mission statement

SWOT analysis

Competitive Advantage

Niche Strategies

Cost

Product/Service Differentiation

Types of Competitive Advantage

Ansoff Matrix

Present Product New Product

New Market

MarketPenetration

MarketDevelopment

ProductDevelopment

Diversification

Present Market

Boston Matrix

Effective Strategic Planning

Management Commitment

ContinualAttention

Creativity

Requirementsfor Effective

Strategic Planning

HISTORY

Mission “Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions.• To refresh the world...• To inspire moments of

optimism and happiness...• To create value and make

a difference. “

Vision “Our vision serves as the framework for our Roadmap and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality growth.• People: Be a great place to

work where people are inspired to be the best they can be.

• Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs.

Vision • Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value.

• Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities.

• Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities.

• Productivity: Be a highly effective, lean and fast-moving organization.”

SWOT analysis-Strengths• Popularity, well known• Easily recognized brand• Available in more than 200

countries• Effective advertising

campaignes• Diversified range of

products

Weaknesses

• Pesticides in its products, exploitative labor practices, environmental destruction, building plants in different countries that employed slave labor and monopolistic business practices

• Product line restricted to the beverages only• Dropping a major portion of potential revenue • Aggressive marketing to children and suspected

unfavorable health effects• In India Coca-Cola has been gaining negative publicity

due to water issues, it resulted in lower growth and pitiable brand image

Opportunities

• Many successful brands to persue• Advertise its less popular products• Buy out competition• More brand recognition

Threats

• Changing health-consciousness attitude

• Legal issues• Health ministers• Competition- Pepsi

Marketing Mix-Product• 3300 products

• Diet beverages, 100% fruit juices, fruit

drinks, water, energy drinks, tea ,coffee...

• Four of their world’s best selling brands are

Coca Cola, Coca Cola Zero, Fanta and Sprite.

Marketing Mix-Price

• Pricing is done according to the market and geographic segment

• Each sub-brand of coca cola has different pricing strategy

• Their pricing strategy is based on the competitors pricing

Marketing Mix-Place• Available all over the world• Their distibution system follows the FMCG distribution

pattern• Its products are sold in restourants, supermarkets and

thousands of vending machines placed in business and public buildings

Marketing mix-Promotion

• Various advertising and promotional strategies

• Individualised ads• Corporate social

responsability• Brand ambassadors

Criticism of Coca-Cola

• Health effects

• Environmental issues

•Economic business practices

Interesting facts• The first servings of Coca-Cola were sold for 5

cents per glass. During the first year, sales averaged a modest nine servings per day in Atlanta. Today, daily servings of Coca-Cola beverages are estimated at 1.8 billion globally.

• Coca-Cola's $35.1 billion in revenue makes it the 84th largest economy in the world, just ahead of Costa Rica

• The Coca-Cola brand is worth an estimated $74 billion: more than Budweiser, Pepsi, Starbucks and Red Bull combined

• The red and white Coca-Cola logo is recognized by 94% of the world's population

• Around the world, the average person consumes a Coke product every four days

• Coca-Cola spends more money on advertising than Microsoft and Apple combined

• Americans ingest 1.7 million tons -- or 10.8 pounds per person -- of sugar each year from Coca-Cola alone

Case study questions

1. Describe the specific type of consumer that the Coca-Cola Company is targeting with each of the following products: Diet Coke, Coke Zero, Diet Coke Plus, Coca-Cola Blak, and Full Throttle Blue Demon. What types of demographic segmentation is each product’s marketing most likely to include?

Case study questions• Some industry analysts think soft drink

companies should develop products that will bring new customers into the market rather than just creating variants on the old. They warn that products such as Coke Zero will cannibalize lost market share from other soft drink categories instead of increas- ing the number of consumers overall. Which Coca- Cola products are most likely to lose customers to Coke Zero?

Case study questionsWhy do you think that the hidden-camera videos used to promote Coke Zero were an effective way to reach its target market? Do you think a similar strategy with a viral marketing campaign on the Internet would appeal to the target market for Diet Coke Plus?

Case study questions

Do you think Diet Coke could have been repositioned to change consumers’ perceptions of it enough to be considered a drink equally appealing to men? Why or why not?