Integrated Marketing Communication Plan
An integrated marketing communication (IMC) plan is described as an approach to achieving the targets of a marketing campaign through the utilization of multiple promotional methods to reinforce each other. An IMC plan recognizes the usefulness of a comprehensive plan that evaluates the strategic roles of various communication disciplines that can be synergized to offer clarity, consistency, and optimum communication impact (Kihanya, 2013). In recent years, the IMC concept has become a key differentiating factor between successful organizations that control large market share and those that do not. The combination of various promotion and media instruments into a consistent message with the objective of achieving their synergetic effects is evident through better communication, and the economic indicator has significant effects on a company’s business and sales plan ( Đokić, 2018 ). The importance of IMC to a business is magnified in the current competitive market, which has forced a change in strategy from the focus on traditional media advertising to other promotional techniques, especially the consumer- and trade-oriented sales promotions. Coca-Cola’s shift from traditional media advertising can be seen through its use of more targeted communication tools, including event marketing, sponsorship, sales promotion, and the internet. Through the use of IMC concepts, the company has managed to maintain a lucrative relationship with its employees, consumers, and stakeholders because it manages to maintain a positive and clear image ( Đokić, 2018 ). An IMC plan also results in a higher level of sales and increased brand market participation, which affects a company’s sales plan, both directly and indirectly.
Coca-Cola Sales Plan
The primary objective of the Coca-Cola company is to increase sales in volume and monetary terms. Therefore, the organization intends to increase its profit by increasing the sale of unit cases of finished products and concentrate sales ( Grgić, 2020 ). The organization targets to double the revenue collected from its activities and those of its bottlers to about $200 billion ( Grgić, 2020 ). In addition, the organization hopes to double its sales volume by doubling the number of soft drinks servings to more than 3 billion per day. Since about three-quarter of Coca-Cola revenue comes from international markets, the organization intends to increase sales in emerging markets, such as India, Brazil, and China. Therefore, the organization targets to increase its volume by 3-4% and attain a 5-6% revenue growth.
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The development of a sales strategy is vital, especially with Coca-Cola’s effort to expand to new markets and introduce new products. When new products are introduced into a market, a sales strategy is required to facilitate the delivery of the expectation set by management; a sales strategy is particularly vital given the reliance on these new products to increase sales volume and revenue (Avlonitis, 2016). In addition, the need for Coca-Cola to diversify and expand from domestic to international demands the development of a sales strategy that will highlight the challenges that should be expected in the future.
The identification of a target market is a key sales strategy that should be adopted by the Coca-Cola company. As a company that targets to be known globally, Coca-Cola should focus on customer segments that promise greater returns (Avlonitis, 2016). The organization can achieve this by targeting different areas around the world with different products, gaining their brand name and popularity. A systematic process ought to be followed to prioritize and target the customers who are part of these customer segments (Avlonitis, 2016). The categorization of these customers into different customer segments should be based on people’s economic and strategic value to the company. To successfully reach out to customers in these segments, Coca-Cola’s bottling partners must be part of the company’s sales strategy; the bottling partners can work closely with customers, including convenience stores, movie theatres, grocery stores, and street vendors, to develop and employ localized strategy (Avlonitis, 2016). The utilization of the aforementioned strategy in an emerging market can help drive volume growth and increase brand value, which translates to higher profits for the company.
Depending on how Coca-Cola prioritizes its customer segments and markets, it can deploy one or more sales force to reach out to different customer groups. In addition, the company targets customer segments and markets through allocating selling efforts and resources based on prioritization; the number, duration, and frequency of sales calls should be based on the Coca-Cola evaluation of the return characteristics of these groups and markets (Avlonitis, 2016). The process of consumer targeting should be based on detecting consumer needs and the organization’s capability to fulfill them, the market size estimation, competitor knowledge, and a cost-benefit analysis.
While Coca-Cola has been introducing new brands in recent years, it focuses its marketing and sales activities on its main brands. Customers tend to associate with successful brands. Therefore, the Coca-Cola company should focus its marketing and selling efforts on its powerful brands, especially its trademark Coca-Cola brand, Sprite, and Fanta, in the emerging market (Avlonitis, 2016). Instead of introducing new brands in the emerging markets, the company should consider reinforcing what makes its powerful brands successful in some instances. Depending on the conditions of the new market, Coca-Cola can consider eliminating some of its brands for its main brands to be successful. The sales tactics adopted should increase consumer awareness of and increase consumer preference for its brands (Avlonitis, 2016). The relationship between the bottling partners and the local consumers heightens consumer awareness of and product appeal for the Coca-Cola brands.
For the sales plan to be successful, there is a need to motivate employees who are the most valuable asset of the organization. Motivation help employees to be better at completing tasks, be more quality-oriented and work with higher productivity and efficiency (Sabir, 2017). Therefore, Coca-Cola must motivate its employees using various techniques, including facilitating better working conditions, career advancement, pay and benefits, and the flexibility of working hours (Sabir, 2017). Coca-Cola can use career development by offering training and development programs that effectively contribute to the personal and professional growth of its employees. Therefore, by using a third party that is competent and experienced in its training and development initiatives, the company has the potential to increase employees’ skills and capabilities and thus motivate them. Alternatively, flexible working hours can help workers to effectively balance their work and personal life, which helps increase their productivity at work due to the reduced stress and the overwhelming effect of work (Sabir, 2017). Intangible motivational tools, such as the celebration of birthdays and other important dates as a team, can also help improve the productivity of employees (Sabir, 2017). Ensuring fair pay and benefits will help the company meet the higher-order needs of its individual employees, such as the need for recognition and fulfillment at the workplace.
Sales Evaluation Plan
It is important for Coca-Cola to evaluate the effectiveness of the selected sales strategies and tactics. If the organization fails to develop a measurement system that assesses the effectiveness of its sales plan, it might continue utilizing outdated sales strategies and tactics that do no help them meet its set objectives (Urano et al., 2011). The audit of the sales plan can help the company examine its performance in relation to its objectives and resources and thus recommend future marketing activities. The identification of the performance gaps in the sales goals and the actual results will help determine the effectiveness of the sales strategies and tactics being utilized (Urano et al., 2011). Therefore, after the end of a financial year, the outcome of the actual sale will be compared to the $200 billion revenue estimates and the 3 billion servings per day target. Additional financial indicators include the revenue growth rate and the sales volume increase rate. Moreover, the effectiveness of the sales plan can be evaluated using various data from sales and financial reports of the company. Aside from the financial indicators, the evaluation of the performance gap can also consider the non-financial indicators, particularly customer satisfaction, to gauge the success of the sales plan.
In addition to the aforementioned sales evaluation tools, Coca-Cola can also compute the internal rate of return on the sales plan. This quantitative evaluation tool is vital in measuring the cost efficiency of the company’s sales strategies and tactics. By presenting the total cost of implementing the sales plan as a percentage of the resultant sales outcome within the given period, the efficiency of the sales plan is measured (Urano et al., 2011). Also, Coca-Cola should consider reviewing sales staff performance to evaluate the specific sales goals for individual employees and teams. Aside from gauging the effectiveness of the plan, this evaluation would consider aspects such as the timescale set for sales plan, which is compared to the actual performance data, and thus gauging the competence of its employees in facilitating timely execution.
Conclusion
In conclusion, the Coca-Cola company uses integrated marketing communication as part of its marketing plan to help promote clarity, consistency, and optimum communication impact on potential customers. The primary objective of Coca-Cola’s sales plan is to increase sales in volume and monetary terms. Therefore, the organization must strive to penetrate the emerging markets by identifying its target market and prioritizing customer segments. Throughout its effort to increase sales in the new markets, Coca-Cola must concentrate on its main brands and increase consumer preference for them. The consistent motivation of employees is also vital for the success of the sales plan. The evaluation of the sales plan will be completed through the review of the performance gap between the sales objectives and the actual outcome. The internal rate of return on the sales plan will also be an essential tool for evaluating the success of the sales plan.
References
Avlonitis, G. J. (2016). Marketing Strategies and Tactics in a Period of Recession. Marketing of Scientific and Research Organizations , 19 (1), 21-32.
Đokić, I. (2018). Economic Effects of Integrated Marketing Communications–The Case Of Food Products. Економика пољопривреде , 65 (3).
Grgić, J. (2020). Coca-Cola internationalization strategies (Doctoral dissertation, University of Zagreb. Faculty of Economics and Business. Department of International Economics.).
Kihanya, K. (2013). Effects of Integrated Marketing Communication on Business Performance in the Insurance Industry a Case Study of the Kenya Orient Insurance Limited (Doctoral dissertation, United States International University-Africa).
Sabir, A. (2017). Motivation: Outstanding Way to Promote Productivity in Employees. American Journal of Management Science and Engineering , 2 (3), 35-40.
Urano, M., & Taguchi, K. (2011). U.S. Patent No. 8,046,252 . Washington, DC: U.S. Patent and Trademark Office.
