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Unit 2 : Marketing Essentials NSAB502B2

Submission Front Sheet

Assignment Code: …NSAB502B2…Programme: BTEC Higher National Diploma (HND) in Business MarketingUnit Title and Number: Marketing Essentials (Unit 2)QFC Level: 4Unit Code: R/508/0486Credit value: 15 creditsDate Set: 16th September 2016Name: ………………………………………….

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Learner’s statement of authenticityStudent’s Name: ____________________________ Student’s ID Number:________________I certify that the work submitted for this assignment is my own. Where the work of others has been used to support my work then credit has been acknowledged. I have identified and acknowledged all sources used in this assignment and have referenced according to the Harvard referencing system. I have read and understood the Plagiarism and Collusion section provided with the assignment brief and understood the consequences of plagiarising.Signature: __________________________________ Date: ___/___/_____

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Assignment Brief NSAB502B2


Executive summaryIn this assignment, the important roles and responsibilities of Coca-Cola Company’s marketing

function and the relationships between roles and responsibilities of marketing department with

other functional units. The impacts of other functional units on marketing have been analyzed.

Comparing the ways of applying different marketing mix has helped to understand the marketing

mix used by Coca-Cola Company. In addition to this, the difference between the usage of 7 P's

of marketing mix by Coca-Cola and Pepsi as competitors to compete in the market has been

understood. This report helps to understand the marketing mix to achieve the business objectives

of Coca-Cola. As a manager of Coca-Cola Company, I have set the objectives and strategies to

perform the marketing plan for Coca-Cola Company. For my company I have segmented the

market and selected the target segments to achieve various goals and objectives. In case

performing the function, I have used situational analysis tools and techniques, allocated

resources and created marketing strategies.



Table of contents

Introduction: 4

LO 1: Explaining the various roles of marketing and the interrelation with an organization’s

functional units: 4

P1: Explaining the various key roles and responsibilities of marketing function of Coca-Cola: 4

P2: Explaining the way of roles and responsibilities of marketing to relate with wider

organizational context: 7

LO 2: Comparing the ways of use of marketing mix elements (7Ps) to attain business objectives:

8

P3: Comparing the ways to apply marketing mix towards the planning process of marketing to

attain business objectives: 8

LO 3: Development and evaluation of a basic marketing plan: (Refer to PPT) 11

P4: Production and evaluation of a basic marketing plan for an organization: 11

Conclusion: 13

Reference List: 14

Appendices: 16



Introduction:

Marketing is the set of institutions, activity and processes for making, interacting, delivering and

exchanging specific offerings, which have value for the customers, partners, clients as well as

society at wide. According to (Kotler, 2012, p.50), marketing is related to the science and arts of

making, exploring and delivering value according to the needs of a targeted market at a profit.

Marketing orientation means the philosophy of a company, giving focus on the inventing and

meeting the desires and needs of customers through its products. The meaning of marketing

process is to identify market opportunities, select target markets, develop relevant marketing mix

and managing the effort of the marketing (Jobber and Chadwick, 2012, p. 66). The learner

considers the use of various environmental analyses related to macro and micro levels.

Moreover, the learner will investigate the necessity of market segmentation and the way to lead

the recognition and total specification related to target groups. According to the consideration of

buyer’s behavior, the learner focuses on the main elements of original as well as extended

marketing mix. The marketing mix covers the introduction to the idea of PLC, development of

new product, pricing strategies, distribution patterns as well as promotion mix. Coca-cola, UK

has been chosen as a case study in this present report.

LO 1: Explaining the various roles of marketing and the interrelation with an

organization’s functional units:

P1: Explaining the various key roles and responsibilities of marketing function of Coca-

Cola:

Coca-Cola is one of the top most soft drink companies in the UK, which uses the roles and

responsibilities of their marketing function in a specific way. Coca-Cola provides respect and

supports the roles of parents because they give focus to create the accurate dietary choices for

own children. The roles and responsibilities of marketing function of Coca-Cola depend on two

types of marketing environment named as the micro environment and macro environment

(Kotler and Armstrong, 2013, p.78). Another important responsibility of marketing function does

not sell Coca-Cola to the youths of less than 12 years of age.

The micro environment consists of various factors like the company, customers, suppliers,

competition. In the case of the micro environment, the company has strong ethic like treat the

people well, help the people to develop and provide the people a rewarding life. Coca-Cola



excels in their performance, develop their skills and move towards career goals (McDonald and

Wilson, 2011, p.44). According to the customers, Coca-Cola gives focus on brand love and they

believe that in the case of the long term the loyalty of customer will increase the strengthen their

market position. In a case of Coca-Cola, a stable, sound and ethical supply is important to

achieve success. For the competition, Coca-Cola competes with Pepsi with the pricing strategy

because Pepsi had 14% growth related to net revenue in the year of 2011. Pepsi sells the similar

types of products to the customers and becomes number one competitor for Coca-Cola (Coca-

Cola UK, 2016).

Figure 1: Micro Environment

(Source: Hammel et al. p. 35)

According to the macro environment, various factors are there like political, economic, social,

technology, environmental and legal, which affects Coca-Cola in its marketing.

POLITICAL Political factor creates change in regulations like

providing nutritional info of product on packaging,

which fluctuate exchange rates that could give an

outcome in a loss during overseas trading and material

sourcing (Anderson, 2012, p. 134).

ECONOMICAL In the recession of 2010 in the UK, Coca Cola's retail

sales have huge positive influence. The combined sales



of three different Coke brands reached to 1 billion Euro

and this incident happened the first time.

SOCIAL Social factors increase interest according to the

consumers in case of healthy life lifestyle as well as

basic knowledge of nutritional info related to sugar or fat

content.

TECHNOLOGICAL According to (Kotler and Pfoertsch, 2010, p. 80),

Technology is the fastest changing factor that creates a

huge impact on marketing. Technology introduces

updating of products according to the customer’s needs

because the old technology becomes outdated.

ENVIRONMENTAL Environmental factor creates a challenge to the usage of

environmentally friendly and sustainable products in

case of packaging. Cans and bottles of Coca-Cola

always describe the recyclable process and the proper

process to dispose of the cans and bottles.

LEGAL Legal factors may affect positively as well as negatively.

Changes in income status and corporation tax change the

financial position of Coca-Cola. The increase in various

taxes could affect on coca Cola negatively. As per the

US tax system, the changes in corporation tax earned on

foreign earnings can impact the financial results of

Coca-Cola.



P2: Explaining the way of roles and responsibilities of marketing to relate with wider

organizational context:

Marketing has different roles and responsibilities in case of a wider organizational context of

Coca Cola Company. The first role and responsibility of marketing are gathering information of

market and analysis of that information (Hammel et al. 2015, p.580). In the context of marketing

information, marketing helps to identify the demand of customers and their likings related to the

advertisements and many others. Marketing helps to achieve the target as well as the objectives

of the company by creating different relevant marketing plans. In the case of designing and

developing a product, marketing plays a significant role. Thus, Coca-Cola has made attractive

cans and bottles to attract their customers. Marketing helps to improve the packaging of the

product so that the customers can handle, and use the package very easily. Moreover, Marketing

creates attractive advertisements to increase the brand value of the product (Gouldson and

Murphy, 2013, p. 125). Brand value provides special identity to Coca-Cola Company and for this

reason, most of the people in the world know about Coca-Cola.

Coca-Cola has various functional units like finance, production, customer service, research and

development and many others which have significance relationships with marketing. In the case

of finance, it creates a report of profit, loss and other costs. With the help of finance department,

marketing can set the objectives and target of the company for next year. Marketing creates a

huge impact on the production of the company. Marketing set a target for the company and

according to that target the production, unit determines and increase their production capability

(Döckel and Ligthelm, 2015, p.58). Marketing is related to customer service because, on the

basis of customer service, marketing unit understands the views of the customers related to the

product. Research and development unit provides various research reports to the marketing unit

so that the marketing department can set strategies for product development and for competing in

the market.

The functional units of Coca-Cola like finance, production, research and development and

customer service has importantly interrelated with the marketing function. On the basis of the

reports and information provided by other functional units, marketing unit set different strategies

to develop the product. Moreover, marketing department set the target for the production unit. In

addition to this, customer service has the small impact on marketing department because the

function of those two units is different.



LO 2: Comparing the ways of use of marketing mix elements (7Ps) to attain business

objectives:

P3: Comparing the ways to apply marketing mix towards the planning process of

marketing to attain business objectives:

Coca-Cola is a beverage company which sells soft drinks to most of the countries of the world.

The company is based in the UK and their customers are all generations of people, whose age is

above 12. Coca-Cola uses 7 P's of marketing in the context of the marketing mix to achieve their

target and objectives. The 7 P's of marketing mix used by Coca-Cola Company are a product,

promotion, price, place, people, process and physical evidence (Kotler et al. 2015, p. 90). In the

case of product, Coca-Cola has the knowledge to assess the customer's mood and market. The

company can understand the demand of the customers and according to the customer's demand

they have varieties of products like Diet coke, Coke zero, Sprite, Fanta and many others. Coca-

Cola also sells a fruit drink named an Oasis, an isotonic sports drink named Powerade, packaged

water named as Schweppes Abbey Well water. Coca-Cola set the price of their products

according to the other competitors as well as a geographic segment. The fluctuation of the price

depends upon the competitors because the competitors sell those similar products at the same

price like Coca-Cola offers.

The company also evaluates the spending amount of people for a specific product and thus, sets

the price of a specific product. Coca-Cola Company supplies their various products to all over

the world. The company has very much effective distribution network so that they can easily

reach to any country in the world. Moreover, the company sells their products in rural and

remote areas of different countries. In the case of promotion, Coca-cola spends a huge amount of

money in advertising and promotion (Armstrong et al. 2014, p.70). Coca-Cola creates some

innovative advertisements with a catchy line like “open happiness",” taste the feeling" to attract

their customers. The company spends a huge amount of money on television advertising as well

as for sponsorship purpose. Moreover, the company gives advertisements in international and

local magazines newspapers as well as different social media to attract the regional customers.

Coca cola also organizes some promotional events in colleges, shopping malls and many other

places. The people relates to the targeted customers of the coca Cola company. The company



targets to sell their products to those people, who are above 12 years, age Coca-Cola UK, 2016).

The company has also reached to the rural people, who live in remote and rural areas. The

company understands the demand of huge percentage of people, who live in rural and remote

areas. (Refer to appendix 1)

The process of marketing mix includes the manufacturing process and the distribution channel of

Coca-Cola. The company has so many manufacturing industries in all over the world. The

process of making the drink is very unique and it passes several quality check process. Coca-

Cola also manufactures and distributes drinks top the other brand owners like Capri-Sun,

Monster energy drinks and many others. The distribution channel of Coca-Cola Company is very

strong and it reaches every corner of the world. The company supplies their various products

immediately according to the customer's demand and they concern on the availability of products

in every retail shop (Chikweche and Fletcher, 2012, p.511). The physical evidence of Coca Cola

is very attractive and can easily identify by observing it looks. However, the logo of Coca Cola is

enough to identify the brand of Coca-Cola.

Figure 2: 7 P’s of Marketing Mix

(Source: Kotler, 2012, p.52)



The first competitor of Coca-Cola in beverage market is Pepsi, which sells the similar quality of

products. The comparison of 7 P's of marketing mix between Coca-Cola and Pepsi are given

below

Different marketing mix Coca-Cola Pepsi

Product Coke, Thums up, diet coke,

Fanta, Sprite, Limca, Maaza,

Kinley and many others

Pepsi, Mirinda, 7 up,

Mountain dew, Tropicana and

many others

Price Follows cost based pricing.

Similar to other competitors

like Pepsi.

Follows competition based

pricing. The prices of

different soft drinks are equal

to Coca-Cola products Coca-

Cola. UK, 2016). Pepsi is

very flexible to make an

adjustment with the price.

Place All over the world. Follows

Hub and Spoke model of

distribution in rural areas

Most of the countries in the

world. Also follows Hub and

spoke model to distribute

products in rural areas.

Promotion Coke spends more amount of

money in advertising.

Pepsi spends more amount of

money in sponsorship and

creating events.

People All the generations of people,

whose age is above 12

Youth people.

Process Have manufacturing

industries all over the world.

Sales and distribution

channels are handled by the

Have manufacturing

industries in most of the

countries. Sales and

distribution channel focuses



large huge number of bottlers

and focus on every possible

retail store.

on main restaurants,

departmental stores.

Physical evidence Very attractive packaging to

attract all the generation of

people. Mainly recognized by

the logo.

Attractive packaging to attract

the young generation of

people. The logo is different

from Coca Cola.

LO 3: Development and evaluation of a basic marketing plan: (Refer to PPT)

P4: Production and evaluation of a basic marketing plan for an organization:

4.1.1: Importance and value of marketing plans:

The importance of marketing plan is to clarify the necessary marketing elements of Coca Cola

Company and figures the objectives, directions and activities for the particular business and the

employees (Balmer, 2013, p.42). The marketing plan to Coca-Cola Company is to give focus on

7 p’s of marketing.

4.1.2: Various objectives and marketing strategies:

The objectives of Coca-Cola Company is

● Maximum sale of the products

● Earn more profit

● Increasing brand image

● To become number one beverage company in the world

The objectives of Coca-Cola are to sale maximum number of products to the customers. By

earning more profit, the company can increase the growth of the business. The increasing brand

image will increase the customer's loyalty and it helps Coca-Cola to become the number one

beverage company in the world (Chikweche and Fletcher, 2012, p.507).

The strategies to fulfill these objectives are

● Study the market segments and competitors thoroughly:

● Reach the product in every possible retail store:

● Make stronger the distribution channel



● Make more innovative and attractive advertisements to attract the customers

● Target hotels, restaurants for bulk selling

Study of market segments and competitors helps Coca-Cola Company to identify the key

competitors of the market. Reach the product in every area increases the business volume of the

company. Stronger distribution channel will reach the product in remote and rural areas.

Innovative and attractive advertisements help the company to compete with competitors as well

as attract the customers. Moreover, it will create a positive impact on customer's mind. Target

various hotels and restaurants for bulk selling that will increase the profit level. (Refer to

appendix 2)

4.1.3: Monitoring marketing plan

In the case of monitoring marketing plan, sales analysis helps to judge the previous year's sales

of the company whereas, market share analysis helps to identify the market share of the company

comparatively to the competitors. Efficiency ratios and the analysis of cost profitability help to

understand the profit and cost level of every aspect.

4.2.1: Segmentation of market and selection of target market

The market must be segmented according to age, gender as well as demographic regions to

penetrate in the market. The selection of target market means to identify the targeted customers

like all generations of people.

4.2.2: Setting goals and objectives

● To identify the targeted customers

● To know the market position

4.2.3: Situational analysis tools and techniques

In a case of market segmentation, a different tool like SWOT analysis and BCG matrix need to

be prepared. Moreover, Porter's five forces model need to produce to identify the barriers.

4.2.4: Creating a marketing strategy and allocation of resources

Giving huge amount of advertisements in local channels, radios helps in developing the

marketing plan. The company will request the shareholders of the company to invest in business

more.

4.2.5: Monitoring and control measures



As a manager, I will supervise all the jobs and give reports and send those reports to the higher

authority so that they can understand the function.

Conclusion:

From this report, the various roles and responsibilities of organizational functions and the

different environmental factors are described. The relationship of roles and responsibilities of

marketing relating to the wider context of the organization are elaborated. The way of using

marketing mix according to Coca-Cola Company is stated as well as the different marketing mix

used by two different companies like Coca Cola and Pepsi for targeting the customers. The

production and development of basic marketing plan for Coca-Cola Company and its controlling,

measuring, using different tools are elaborated



Appendices:

Appendix 1:

Figure 1: Comparison with other brand

(Source: Coca-Cola. UK, 2016)

Appendix 2:

Figure 2: Profit Margin of Coca-Cola

(Source: Coca-Cola. UK, 2016)


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