Question: Can you answer question number 5 too? COCA COLA: WHAT HAPPENED TO THE MALAYSIAN MARKET Coca-Cola, or Coke, is a carbonated soft drink manufactured by


Can you answer question number 5 too?
COCA COLA: WHAT HAPPENED TO THE MALAYSIAN MARKET Coca-Cola, or Coke, is a carbonated soft drink manufactured by The Coca-Cola Company Originally marketed as a temperance drink and intended as a patent medicine, it was invented in the late 19th century by John Stith Pemberton and was bought out by businessman Asa Griggs Candler, whose marketing tactics led Coca-Cola to its dominance of the world soft-drink market throughout the 20th century. The drink's name refers to two of its original ingredients: coca leaves, and kola nuts (a source of caffeine). The current formula of Coca-Cola remains a trade secret; however, a variety of reported recipes and experimental recreations have been published. The Coca-Cola Company produces concentrate, which is then sold to licensed Coca-Cola bottlers throughout the world. The bottlers, who hold exclusive territory contracts with the company. produce the finished product in cans and bottles from the concentrate, in combination with filtered water and sweeteners. A typical 350 ml can contain 38 grams (1.3 oz) of sugar (usually in the form of high-fructose com syrup). The bottlers then sell, distribute, and merchandise Coca-Cola to retail stores, restaurants, and vending machines throughout the world. The Coca-Cola Company also sells concentrate for soda fountains of major restaurants and foodservice distributors. Soft drink sales growth in the Malaysian market bas slowed to 2 percent annually from more than 4% yearly growth experienced during the late 2010s. The Coca Cola company has felt this trend. Cokes international sales has been increasing about 31% per year while domestic sales are only growing about 7% yearly. Despite its many growth opportunities in the international markets, Coke wants to increase its domestic business. The Malaysian domestic business is important to Coke because it provides a base on which the company builds its business around the world. Sergio Zyman has been appointed to the top marketing job at Coke and given the task of reviving domestic sales. This is a difficult task for several reasons. First, the total cola market itself is shrinking. Cola sales accounted for 70% of all soft drink sales in 2019 but only about 69% in 2020. this downward trend is expected to continue. Second, Coke and Pepsi have almost identical market shares in the important supermarket business although Coke maintains about 6% advantage over Pepsi in all cola sales. In addition, private label brands have been capturing an increasing share of cola sales. Mecca cola is becoming much more aggressive in producing private label cola brands as well as in marketing Royal Cola and Diet Mecca Cola brands. All these activities show that there is an extremely competitive marketplace. Third diet colas and diet Coke are also experiencing declining sales. Some consumers have tried the taste of diet colas and are switching to other soft drinks. And the older consumers have never been a strong supporter of diet colas. Thus, there are limited growth opportunities in the diet cola market. Despite of these problems, Zyman is expected to increase Coke's domestic market. One approach being considered is to focus marketing efforts on new products such as clear colas, iced teas, fruit drinks and sport drinks. Another idea is to introduce low calories cola to the market. The name given was Light Coke. Coke Light would use less artificial sweetener than the diet colas and therefore taste more like regular colas. In December 2020, the company announced that as a restructuring plan, it's planning to cut 2200 jobs worldwide which will result in annual savings of between US$350 million and US$550 million On January 25, 2021, the company announced it would be launching Coca-Cola with Coffee and Coca-Cola with Coffee Zero Sugar. The product would be available in three flavors Dark Blend, Vanilla and Caramel - while the zero-sugar, zero-calorie version comes in Dark Blend and Vanilla Coke executives are also concemed whether the "Taste the Feeling" advertising campaign is really tapping into the important youth market. Throughout the decades and multitudes of marketing campaigns, Coca-Cola has remained consistent when communicating one strong and effective message: pleasure. Enduring, simple slogans such as "Enjoy" and "Happiness" never go out of style and translate easily across the globe. Developing new slogan and advertising plan is another option open to Mr. Zyman to consider Questions 1. Do you think Coca Cola is driven by a production, selling or marketing orientation? Explain TWO (2) reasons why you said so. (10 MARKS) 2. Why is domestic market important to Coke? Why does Coke not focus most of its attention to growth opportunities in the international markets? Discuss TWO (2) reasons. (15 MARKS) 3. Do you think Coke made the right decision to introduce Coca-Cola with Coffee and Coca-Cola with Coffee Zero Sugar? Discuss TWO (2) reasons why you say it is a right decision or a wrong decision. (20 MARKS) 4. There are four sets of factors affecting consumer buying behaviour, Between these four sets of factors, which set of factors do you think that strongly affects consumers' purchase decision when purchasing Coca Cola products. Explain briefly this factor. Then, discuss TWO (2) reasons why you say that this the strongest factor affecting consumers' purchase decision. Explain your answer by giving relevant examples. (25 MARKS) 5. If you are Mr. Zyman, discuss THREE (3) marketing strategies that you will implement to increase Coke's domestic business? Provide appropriate examples in your discussion. (30 MARKS)Step by Step Solution
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