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MKW1120 Assignment

Coca-Cola Marketing

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250 views

MKW1120 Assignment

Coca-Cola Marketing

Uploaded by

angelaers
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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ACTORS OF MICROENVIRONMENT

Company Name: Coca-Cola Bottlers (M) Sdn Bhd


Competitors:

Spritzer Bhd (www.spritzer.com.my)


Yeo Hiap Seng (M) Bhd (http://www.yeos.com.my/)
Nestle (Malaysia) Bhd (www.nestle.com.my)
Malaysia Milk Sdn Bhd (www.mmsb.com.my)
Fraser & Neave Holdings Bhd (www.fn.com.my)
Permanis Sdn. Bhd (www.permanis.com.my)

Suppliers:

Malayan Sugar Manufacturing Malaysia Holdings Bhd (Sugar)


Aluminium Company of Malaysia Bhd (Raw Aluminium)
SHS Plastics Industries Sdn. Bhd. (Plastic Bottles)
M.S.Asia Enterprise Sdn. Bhd. (Phosphoric Acid)
San Soon Seng Food Industries Sdn. Bhd. (Food Colouring)

Intermediaries:

McDonalds (Retailer)
Wendys (Retailer)
Subway (Retailer)
Mercatus Plus (M) Sdn Bhd (Marketing Services Agency)
Deutsche Bank (Malaysia) Berhad (Financial Intermediary)

Customers:

Consumer market consisting of individuals or households that purchases the


companys products for personal consumption.
Reseller markets such as Tesco, Giants and Aeon that buys the product to resell at a
profit.

Public:

Credit Suisse Securities (Malaysia) Sdn Bhd (Financial Public)


Muslim Consumer Association of Malaysia (Citizen-action public)
Pertubuhan IKRAM Malaysia (Citizen-action public)
Fitness Malaysia (Media public)
Ministry of Health Malaysia (Government public)

MACROENVIROMENT

MACROENVIROMENT

IMPACT

Demographic Change
The so called Westernisation of the global
eating habit has been blamed for the change
in the food purchasing and consumption
pattern of the Malaysian population. This
can be seen through the rising increase in
the popularity of fast food chains such as
McDonalds, Wendys and Subway. More
Malaysians are inclined to indulge in an
affluent diet consisting of energy-dense
food that are rich in fats and sugar.(Gopalan,
1992)

The impact of this sweeping change in


demographic is indicated by the yearly
increase in the on-trade and off-trade sales
of carbonated soft drinks in Malaysia.
(Euromonitor, 2015)

Between 2009 and 2014 the total volume


growth of soft drinks sales in Malaysia has
increased by a staggering 33.1% on both ontrade and off-trade sales. The company
targets ads to family seasonally following
such occasions as Hari Raya, Chinese New
The generational labels for those within this Year and etc., as this demographic falls in
context differs to that of the Western world
line with the The Developer and
but has been dubbed as The Developer for Generation Z category.
those born between 1983-2004 and
Generation Z for those born after 2005.
(Tung & Comeau, 2014)

Political Change
The soft drinks market in Malaysia has
always been dominated with international
players, and for the better half of the past
decade the regulations on the sale of these
sugary drinks have been lax. However, due
to growing concerns from increasing cases
of diabetes and a cultural shift towards a
healthy lifestyle, there has been mounting
pressure on the government to better
regulate the consumption of soft drinks in
Malaysia.

The ban on soft drinks in schools would


have been seen as a setback to Coca-Cola
but a similar policy in the US has shown
how little to no impact such policy have on
a childs intake of soft drinks. Research
done by the University of Illinois showed
that the same children were still consuming
a regular amount of soft drinks at home and
some were still able to obtain them in
schools as most of them has flouted the ban.
(Bates, 2011)

Back in 2011, a system was implemented in


schools across Malaysia to include the Body

The sales figures from the Euromonitor


report also showed an increase in soft drinks

Mass Index (BMI) of each students in their


report card to alert their parents on the
health of the children. As part of the move,
school cafeteria was banned from selling
sugary soft drinks.(MacKinnon, 2011) cont.

sales for that same year indicating that such


policys lack the comprehensiveness to have
any meaningful impact on the advertising
and sales of Coca-Cola Bottler (M) Shd
Bhd.

However, compared to other countries, such


regulations are considered laid-back and the
only real opposition comes from the
Consumers Association of Penang (CAP).
The CAP has been campaigning to impose
tax on soft drinks, to remove the subsidies
on sugar and to limit the sale of large sized
soft drinks.(CAP, 2015)

Natural Change
Sustainability is becoming more and more
of a hot topic in Asia, and Malaysia is no
exception. Recently, the prime minister of
Malaysia has called for sustainability to be
the core Asean policy due to issues such as
climate change.(Akil Yunus, 2015)

The Coca-Cola company understands that


there is a link between a healthy ecology
and a healthy economy being as old and
long standing as they are. Using their long
and well establish wide reach, the company
has develop a multitude of international
programs to address the growing trouble of
One of the major impact of the soft drink
not just the world but also of the smaller
industry on the environment is the use of
non-biodegradable plastic in the bottling of communities. One such program is the
PlantBottle Packaging that uses newly
their products, most prominently PET. The
carbon footprint in both manufacturing and developed PET plastic bottle made entirely
disposing of the plastic is significant enough out of plant materials that are 100%
recyclable and has a lower carbon dioxide
to leave a lasting effect on the environment
emission. (Anderson, 2015)
and lead to climate change.(Pasqualino,
Meneses, & Castells, 2011)

Economic Change
Due to a sustained economic growth over
the last few decades, Malaysia has
experienced a rapid urbanization leading to
a sizeable increase in the middle class and a
rapidly rising income. This in turn has
impacted the lifestyle, occupational pattern
and dietary habits of the population. (Noor,
2002)

Soft drinks in general has always targeted


itself to those in the middle to poor income
family and less to those of affluent nature.
This has worked well for Coca-Cola in
markets such as India where the large
majority of the public lives well below the
poverty line. That is to say even with the
increase in cost of living in Malaysia, the
Recently however, due to implementation of impact it has on the local sales of CocaColas product is small or at best not visible
new taxes, reduction of subsidies and the
as the company continues to introduce new
weakening value of the ringgit the
products (i.e. Coke Zero) into the market in
Malaysian consumer are either buying less
light of recent events.
or looking for greater value in their
purchases as cost of living rises.(Bernama,
2015)

MARKET RESEARCH PLAN

RESEARCH QUESTIONS

How to associate the brand with a healthy lifestyle?

RESEARCH OBJECTIVES

To improve sales in health conscious market (Exploratory Research)


To understand the image perception of the company (Descriptive Research)
To determine whether the introduction of a no sugar or calorie variant of the product
has improved sales. (Causal Research)

SOURCES OF DATA

Sales information on competitors that have healthy alternatives. (Secondary data can
be obtained from Dun & Bradstreet (http://dnb.com))
Information on the current consumer perception of the brand and its image.
(Secondary data can be obtained from Radian6)
Information on what consumers want as a healthy option.
Sales figures of before and after the introduction of the new no sugar or calorie drink.

RESEARCH APPROACH

Observational research (ethnographic) into the purchasing habit of shoppers in a super


market would help determine how the consumer ends up making their choice in
purchasing soft drinks. Understanding the demographic whether they be male, female,
single, married, have children, are young or old and what conversation theyre having
before making the purchase is vital in understanding ways the brand can be marketed.
This would give the marketers an idea of how the consumer truly perceive the
companys brand and whether they make their choices based on health conscious
decisions or not.
Survey research would be well suited in obtaining the second objective, that is
determining the image that consumer associated the companys brand with. This can
then be broken down into age groups and also single or married with family. This
would give us a better target for marketing.

CONTACT METHOD

For the observational research, the best contact method would be via personal
interviewing or rather in the case of ethnography personal observation. The researcher
is required to observe and record on the conversations and behaviour of the consumer
during purchase. The sampling plan would be probability sample of a simple random
sample.
The survey research in determining the perception of the consumer on the companys
image should be done online to maximize the reach of the research to the public. The
sample plan should be probability sample of a simple random sample to better
determine the perception of varying demographic.

RESEARCH INSTRUMENT

Mechanical instruments such as cameras and microphones can be used in obtained


data for the observational research. The ethnographer would be equipped
inconspicuously with such devices as they venture around the supermarket.
Questionnaires will be used in determining the customers perception of the brand.
The online survey development site SurveyMonkey would provide the best platform
for such a task. The following are a few sample questions;
o Gender, Age
o How often do consume soft drinks?
o Favourite soft drinks?
o Common location of to purchase soft drinks?
o How health conscious are you?
o How satisfied are you with Coke?

Word count: 1506

REFERENCES

Akil Yunus, R. A. (2015, 04 August). Future Asean policies must be based on inclusiveness
and sustainability, says Najib. The Star Online. Retrieved from
http://www.thestar.com.my
Anderson, M. (2015, 03 Jun). Great Things Come in Innovative Packaging: An Introduction
to PlantBottle Packaging. Coca-Cola Journey. Retrieved from http://www.cocacolacompany.com/
Bates, C. (2011, 8 November). Banning fizzy drinks in schools 'does not reduce children's
intake'. Mail Online. Retrieved from http://www.dailymail.co.uk
Bernama. (2015, 21 December). Consumers grappling with rising cost of living, GST. The
Malaysian Insider. Retrieved from http://www.themalaysianinsider.com
CAP. (2015). Tax soft drinks to control diabetes. Consumer Association of Penang. Retrieved
from http://www.consumer.org.my
Euromonitor. (2015). Carbonates in Malaysia: Euromonitor International.
Gopalan, C. (1992). Nutrition in developmental transition in South-East Asia.
MacKinnon, I. (2011, 18 April). Malaysian school pupils to be scored on weight The
Telegraph. Retrieved from http://www.telegraph.co.uk
Noor, M. I. (2002). The nutrition and health transition in Malaysia. Public Health Nutrition,
5(1a), 191-195. doi:doi:10.1079/PHN2001293
Pasqualino, J., Meneses, M., & Castells, F. (2011). The carbon footprint and energy
consumption of beverage packaging selection and disposal. Journal of Food
Engineering, 103(4), 357-365. doi:http://dx.doi.org/10.1016/j.jfoodeng.2010.11.005
Tung, L. C., & Comeau, J. D. (2014). Demographic Transformation in Defining Malaysian
Generations: The Seekers (Pencari), The Buiders (Pembina), The Developers
(Pemaju), and Generation Z (Generasi Z). International Journal of Academic
Research in Business and Social Sciences, 4(4), 383-403.

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