Coca Cola Marketing Plan in Kenya

Document Type:Thesis

Subject Area:Marketing

Document 1

Coca-Cola Refreshments is its only bottler, based in America. Kenya is a country found on the eastern region of Africa. It is a big customer base for the company. However, the company majors on soft drinks and mineral water in Kenya. Therefore, two new products are recommended for the Kenyan market. These are organic fruit smoothies and organic cold-compressed juices. There is an awakening in Kenya towards healthy living and this is shifting the preferences of most families from carbonated soft drinks to organic fruit juices and smoothies. The three research methods that will be used to evaluate if there is a need and an existing global market include surveys, observation, and focus groups. Surveys is the most used research method in market research. Surveys are best for objective or quantitative studies, specific questions, large sample, and for researchers who have resources. They can be conducted via snail mail, face-to-face, phone, or web forms. Observation is useful in many aspects, but for this research, there will be contextual inquiry and in-store observation. This research will find out the choices shoppers make with beverages and an explanation for their choices. Focus groups refers to where sampled individuals sit round a table and discuss on the given topic naturally while important notes are taken. These will be held several times during the research, before and after surveys and observations are done. Coca-Cola has many competitors, including global competitors such as Pepsi, Red Bull, Dr. Pepper Snapple, Nestle, and Parle (Deal, 2018). Fortunately, there is no local competitor in Kenya for Coca-Cola Company.

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Even before offering the two new products, Coca-Cola has a convenience advantage over all its competitors in the Kenyan market. While it is difficult to find the products of other companies in the country, Coca-Cola beverages are found everywhere, including on the streets from hawkers (Deal, 2018). Customer Relationship Management (CRM) The CRM software chosen is Salesforce. Salesforce is a truly tested software that has been widely used by various companies. In addition, it provides every range of features from the simplest to the most complex. The platform gathers all the customers’ information in one place. The major features of Salesforce include contact management, mobility, analytics, customization, and simplicity (Dhar, 2018). This will be done through emails, chats, and social media sites. For the proposed new products, inactive customers can be attracted back by use of messages or even tokens (Dhar, 2018).

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Distribution Channels The distribution channel to be used for the Kenyan market will be a network of dealers who will then sell the products to the end users. The Kenyan end users usually obtain their products from supermarkets, malls, larges shops, kiosks, hawkers, and street vendors. If Coca-Cola would want to distribute its organic fruit juices and smoothies in all these places, it will require a network of dealers who have access to these sellers. The global supply chain for the organic fruit juices and smoothies will start with the organic fruit farmer. All the fruits will be sourced from strictly organic farms and will have to pass the organic tests. From the farmers, the fruits will be taken to a manufacturer for processing. This is where cold compressing, preservation, and every other treatment will be done.

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The processed products will then be taken to bottlers for packaging (Sarangi, 2018). Consumers may think that the products are not really organic as indicated and so look for other choices they deem more honest. Premium pricing will give the products a class that will set them apart from every other fruit juices and smoothies in the country (Hinterhuber & Liozu, 2018). It creates a prestige feeling in the consumers, hence attracting the middle and high classes of the society. Acquiring organic fruits will cost $1. to $1. per kilo of fruit. This makes the total production and distribution cost $2. to $4. Therefore, the premium pricing will be around $7. to $9. to $13. Naked Juice is the largest organic juice and smoothies producer in the US. The proposed products will retail at the lowest price of $15. The recommended price is higher than those of the competitors.

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The main reason for this difference is that the suggested products will sell at premium prices rather than ordinary ones (Hinterhuber & Liozu, 2018). Political mileage has been achieved through the traditional media. This shows how much Kenyans rely on and are influenced by the traditional media. Sales promotion should be conducted to influence and drive sales (Kumar, Suganya, & Imayavendan, 2018). The two main sales promotion activities that will be used are road shows and coupons. The two methods will be combined. However, there is no local competitor in Kenya for Coca-Cola Company. The risks associated with launching the products in Kenya are political risk and growing national debt. The risks can be mitigated through politically savvy banking, insuring a business, and new channel entry strategy in which the company enters the market through an acquisition, alliance, merger, or franchising.

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The CRM software chosen is Salesforce, which offers features such as contact management, mobility, analytics, customization, and simplicity. The information generated by the Salesforce software will be useful in personalizing customer experiences, communication, and interaction. CRM Software-Evaluating Microsoft Dynamics CRM to Salesforce. Hinterhuber, A. Liozu, S. M. Thoughts: premium pricing in B2C and B2B. Distribution in emerging markets: a strategic perspective.  International Journal of Business and Emerging Markets, 10(3), 213-228.

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