This document is related to marketing and its various concepts. It is about the external environment in which a product or brand operates, the marketing mix and the overall marketing applications and environment.
In order to illustrate the application and how these things affect practically, a real world brand has been selected and all these concepts applied and analysed with respect to the particular brand. The assignment illustrates how marketing principles, tools and methods are employed within an organisation and how effective these strategies and actions prove to be. The brand selected for the purpose of analysis is Coke of which around 260 million products are sold every year in UK.
You are to select a consumer product/brand that has a large market in the UK and research its associated marketing programme and environment.
The Brand-Coca Cola
Coca-Cola is a worldwide global brand that exists in more than 200 countries. It is known for making carbonated soft drink generally known as Coke. Coke has been the top most consumer brand in UK throughout and was the leader in 2009 and 2010 as well (Source: The Nielsen Company). Coke is produced by the Coca Cola Company that also makes drinks for sports, juices etc. Coke is made from the extracts of coca leaves. The origin of the brand is United States. Coke is the industry leader and has the largest market share in United Kingdom and world over (Daily Mail, 2010). The company is involved in both related and unrelated diversification. Coke is a range brand that in turn has a product line under it in the form of diet Coke, Coca Cola Vanilla, Coca Cola Cheery, Coca Cola Zero and also comes in the flavours of coffee, lemon and lime.
The greatest focus on the brand is on the health aspect of its customers and this is the reason that the brand has decided to move towards the production of products made from natural raw material instead of synthetic ones (Daily Mail, 2010). The motto of the brand is to provide its consumers with life full of happiness and refreshing moments. It aims to provide the best value for people’s money in the form of a quality and tasteful product at affordable price. The brand provides employment opportunities to many people around the world thus adding values to their lives and improving their lifestyles and living. The brand has a proactive and learning approach.
Part ‘1’- The product/brand’s macro and competitive environments
The macro environment consists of the overall external environment in which a product, brand or company exits. It consists of all the external forces which affect the performance of a brand or product but are not under control such as the overall political factors, cultural state, environmental factors etc. For this, the PESTAL analysis is used to study, understand and analyse the forces existing in the external environment and their overall affect. PESTEL analysis stands for political, economic, socio cultural, technological, environmental and legal forces that exist in the external environment and are uncontrollable that affect the firm externally. Research has claimed that organizational scanning technique is linked with improved organizational performance (Newgren, et al, 1984; Dollinger, 1984; West, 1988; and Murphy, 1987). The first component of environmental change, complexity is defined as a measure of heterogeneity or diversity in many environmental sub-factors such as customers, suppliers, socio-politics or technology (Lane & Maxfield, 1996:217; Chae & Hill, 1997:8 and Chakravarthy, 1997:69). Since complex and turbulent environments can be desirable, but since many businesses are uncertain about how to cope with such situations, it makes sense to identify ways to handle such environments. Many believe that identifying a causative link between environmental variables and management action is not possible because of the complexity of variables and the chaotic nature of environments (Winsor, 1995:181). However, recent research has stressed the inter-relationship between an organisation and its environment (Polonsky, Suchard & Scott, 1999:52). Organisations co-exist and co-evolve with their environments and therefore are able to influence the environment to a greater extent than previously thought (Brooks & Weatherston, 1997:13). Organisations shape their environments by influencing their industries or collaborating with each other, thereby gaining some control over some part of their environments. The environment is thus not completely determined by external forces, but can also be influenced by the organisation (Anderson, Hakansson & Johanson, 1994, in Ford, 1997:229).
Competitive environment consists of the factors affecting the competitive position of the firm. It consists of the competition a product or brand faces in terms of both; direct and indirect competitors, suppliers, buyers etc. For this, Porter five forces model best suits to analyse the effect and present situation of the competitive position of the firm. There is continuing interest in the study of the forces that impact on an organisation, particularly those that can be harnessed to provide competitive advantage. The ideas and models which emerged during the period from 1979 to the mid-1980s (Porter, 1998) were based on the idea that competitive advantage came from the ability to earn a return on investment that was better than the average for the industry sector (Thurlby, 1998). Porter (1980a) defined the forces which drive competition, contending that the competitive environment is created by the interaction of five different forces acting on a business.
You are required to write a report on the product/brand’s macro and competitive environments, so what you have presented is not required. You have written a literature review/essay on PESTEL and PORTER, both covering about 500 words. Not needed. You are only required to go straight into the product’s macro and competitive environments. Even though it is recommended to insert a bit of theory, it does not have to own its own chapter, or be composed of about 500 words in a 3,000 word report.
PESTEL analysis for Coke
Figure 1 on the below shows the forces affecting a firm externally.
Figure: 1 ( shell-livewire.org)
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