Develop understanding of the concepts of business communication and for this the comparison between two organisation is undertaken so that they can analyse the difference among the communication strategy of the two with the help of following questions:
- Critical evaluation of the marketing communication methods and analysis of internal and external market
- Formulation of communication strategy
- Effectiveness of the communication strategy
Communication is identify as an effective process of transmitting, initiating and receiving information. It is also define as a transmission of message from transmitter to receiver by means of signal of few sort, sent via a channel of some category. Marketing communication is a combination of marketing channels and tools. It can be present in the form of advertising, direct marketing, personal selling, promotions, public relations, sponsorship etc. It is essential and beneficial for the each and every organisation in different terms such as developing strategic vision, creating brand awareness, fostering goodwill, expressing competitive edge, attracting talent and informing investment community (Akinyele and et. al., 2010). This report is based on three tasks and in first two task chosen organisation is Coca-Cola and in last task, given enterprise is NIKE. Both companies are multinational and served in worldwide. Brief description of the Coca-Cola and evaluation of the different approaches on marketing communications are determined in this study. Development of marketing communication strategy and elements of communication process which is also covered in this project. Beside this, effectiveness of NIKE marketing communication strategy which is also evaluated in this assignment. Main purpose of this report is to identifying important and significance of marketing communication in the business operations and functions.
Brief description of Coca-Cola including internal and external factor as well as marketing theory
Coca-Cola is an American multinational Beverage industry, manufacture, corporation, marketer and retailer of Syrups and non-alcoholic beverage concentrates. It is the biggest selling soft drink and popular company in history. It is a world famous and popular organisation with its flagship coca-cola products, it was invented by the Asa Griggs Candler and John Pemberton in 1886. Coca-Cola produce different variety of products to the customers such as Sprite, Fanta, Diet Coke, Coca-Cola Zero, Dasani, Coca-Cola Life, Minute Maid, CIEL, Powerade, Simply Beverages, Coca-Cola light, Fresca, Del Valle, Mello Yello, Fuze, etc. All these products are available in market place with different range of price. These price are based on its product quality and quantity (Almeida and et. al., 2012). Main aim and motive of this organisation is to provide quality beverages to the customers at reasonable rate. So it assist the business organisation to maximise their sales and revenues in given time duration.
Coca Cola targeting and positioning:
Targeting: Company doesn't target a particular segment but accommodate its marketing strategy which help them to develop new products in marketplace.
Age: Mostly, Coke does not have a particular target and is used to each and every person. But the main customers whose belongs in age group of 12 to 30. Thus main target audience of the Coca-Cola is youth or youngster (Amoako and et. al., 2012).
Nature: Nature of the business organisation is to provide joy, fun, entertainment to their target customers.
Positioning: Coca-Cola is world famous and well-established brand in all over the globe. Perception of the clients about business products is much high which is beneficial for them to accomplish their marketing goals and objectives in allotted time duration (Bacile, Ye and Swilley, 2014). Company has been successful by applying its Unique Selling Preposition (USP) as “Live the Coke side of Life”, it is mainly related to happiness and joy.
Methods of marketing communication: Coca-Cola currently used different kind of communication methods with aim to promote its new products and services in marketplace. There are some methods which are determined as below:
Advertisement: In order to promoting their new coke products, company mainly emphasis on TV Commercials. In this they includes all age group people and retain strong relationship between them, where as if business entity look at it another challengers like Pepsi. It is a main competitor of the organisation whose adopt same strategies which is completed by Coca-cola so there are different sameness in such type of strategies.
Sales promotions: It is another important part of the marketing communication which is used by the company to advertise their products in marketplace. Further, it support to maintain long lasting relationship with customers (Baker, 2014). In order to attract large number of the customers, Coca-Cola pull strategies, it includes different aspects such as discounts, buy one get one free and many other.
Direct marketing: It is a best techniques including, social sites, fax, mails etc., these are less used by the Coca-Cola because it is world famous enterprise which does not follow their strategic planning to apply such tool. But sometime it is useful and beneficial for the company when its targeting individual customer.
Publicity and public relation: This tool play important and critical role in establishing the brand image and goodwill of organisation. For example: like in Cola, Sprite is a average brand which tried to relate with sensitive group by communicating the message of effort to building homes for large number of person who are not rich.
Personal Selling: It is also important and foremost method of marketing communication which is used by the each and every company in order to advertise their coke products in market (Berthon and et. al., 2012). It is less used by the Coca-Cola because it is world largest and fastest growing industry in all over the globe.
Internal and external factor of Coca-Cola: These are important and necessary part of the organisation to gain competitive edge in limited time period. In this internal factor includes SWOT and external factor Includes PESTLE Analysis. Both these are determined as below:
SWOT Analysis of Coca-Cola:
STRENGTHS: There are some strengths of the company which are identify as below:
World's leading brand: Coca-Cola is one of the famous and strongest brand worldwide with leader in brand portfolio and value. They are popular with its top four brand like sprite, Coca-Cola, Diet coke and Fanta (Brunello, 2013). Du to its, business entity come out with the extension of brand like Lemon coke, Cherry coke and Vanilla coke.
Operates in large scale: Company operates in very large area with its turnover over than $25 billion. Thus, it is world largest distributor and retailer of non-alcoholic drink. Recently, business operates and runs in over 200 nations which is most of the strong point for the company to achieve long term goals and objectives.
WEAKNESS: There are few weakness of Coca-Cola are define as below:
Health issue: Coca coal comp-any has to face different health related issues like it cause the cavities, diabetes and many other disease. Continuous consumptions of soft drink also damage human body.
Negative impact of publicity: Coca-Cola face different negative impacts of the publicity in India. The science and environment centre (CSE) applying pesticide substance in their soft drink that were produced in India (Castronovo and et. al., 2012). Soft drink products can cause as a cancer, damage reproductive and nervous system and also decrease bone minerals.
OPPORTUNITIES: Different opportunities are available for the Coca-Cola which are determined as below:
Non Carbonate drinks: To meet with the demands and wants for non carbonate drink products in United Kingdom, company has exist with its brand name of OASIS, it is a non carbonated fruit drink. There are another brand such as FRUITOPIA, CAPPY.
Increasing brand of bottled water: In all over the world, large number of the person decently more health conscious which are maximise bottled water brand. In United state, such brand generated $15.6 billion revenue.
THREATS: There are some threats which are face by the Coca-Cola, these are shown as below:
Coca WAR: One of the main threats of the company is Coca war, it was essentially a marketing campaign and television advertisement between the retailers of soft drink (Corner and Randall, 2011).
Issue going in some parts of the globe: There are different parts of globe like Colombia, India coca-cola has to fall due to some problems like, use of pesticide in India. It effects on business and its sales in negative way.
PEST Analysis of Coca-Cola:
Political: Coca-cola is famous and non-alcoholic beverage organisation that produce different products which is certified from Food and Drug administration (FDA Department) in all over the glove, it is a legal authority and role is to certify the entire manufacturing process whether the business reaching international quality or not.
Economic: This factor too have a direct and main effect on business of global and large organisations. The actual global financial situation decreased the business profit in significant manner. Coca-Cola handled to change relatively unharmed which is also effects on business performance and activities (Danaher and Rossiter, 2011). It is identify as an economic crises which highly impact the buyers.
Social: Different social factors that effected on business such as fashions, customs, wishes, education level, hopes, living standard of people, distributions of income, consumers' consciousness, traditions, corruption and many other. In cause of Coca-Cola, product labelling and marketing strategy is different from nation to nation which depends on tradition and culture of country. Company apply its marketing tools with this film stars and other actors as their brand ambassadors.
Technological: It is another factor which also effects on the business operations and activities (Delgado-Ballester, Navarro and Sicilia, 2012). In Coca Cola, technology includes innovative approach of production of services, products and discovery of other development. Such kind of technology makes the better utilisation of raw material in possible way (Finne and et. al., 2012). They also should have strong and long term scheme methods towards the speedily variation in technology quality and thereby developing and keeping a standard competitive edge over their competitors.
Consumer buying process: This process includes different stages which are determined as below:
(Source: 5 Stages of consumer buying decision process, 2018)
Step 1: Recognition of wants and needs: Under this stage, marketing manager of the Coca-Cola company analysis the wants and needs of the customers towards beverages (5 Stages of consumer buying decision process, 2018). In this internal and external factors that are influencing the board of director in making effective decision about this concepts.
Step 2: Information search: Internal factor such as employees, suppliers and many other highly effects on managers is to conduct research and collect necessary information about customers taste, needs, preference and so on (Graham and Frankenberger, 2011).
Step 3: Evaluation of choices: It is main role of the customer is to purchase an effective products as compare to other competitors.
Step 4: Purchase: At this stage, customer buy the goods. Their purchasing judgement may be effected by such manner in which they can buy and collect the beverage.
Step 5: Post purchase evaluation: It is identify as the feedback of the customers related to beverages and many other products. So it is also effects on business operations and activities