Marketing Plan Phase3 (Coca Cola)
This is a strategy employed by the Coca Cola Company in order to achieve a large market share for the new beverage container. The products penetrate the market and satisfy consumer needs while retailers are given more margins and incentives. Despite the high market share that the company has already achieved, the competitive environment pushes it to apply feasible measures attain and maintain potentially dominant customers. Penetration strategy through lowering prices of Coca Cola products attracts a multitude of new consumers and retains existing customers, leading to abundant sales and large market shares.
Complimentary products are also promoted through this strategy because the customers will be away of their existence after being lured into purchase by the lower costs (Solomon et al, 2011). However, the penetration strategy can have a major limitation if other competitors in the market such as Pepsi, decide to lower their prices too. This lowers the value of the subsidized products.
3. Inventory control
This strategy refers to the method of supervising and managing stock within a company to regulate and account for product flow. According to Wood (2005), it also ensures that the company has adequate supply of incoming goods while maintaining security for the company’s assets. Coca Cola needs to pay more attention on inventory control to maintain supplies and good distribution channels that show positive feedback from the customer. Inventory control will give the company impetus on the distribution of the various coke products thus contributing to the company’s continuous success.
Keeping track of product records will enable the company to maintain its status.