External : This in all organisations has

External environmental factors that might affect Coca Cola’s stakeholders can be categorised under the following factors Political,Economic,Social,Technology,Environment and Legal factors. This is a tool used to analyse and monitor the macro-environment by marketers (according to Team FME,2013,P6).
This PESTEL Analysis is used by a company such as Coca Cola when launching a new product, entering a new country and considering a new route to your market (according to Team FME,2013,P8)
POLITICAL : This in all organisations has a large effect on them because Government comes up with policies and laws,trade restrictions etc. There are taxes that need to be paid for for the manufacturing and distribution of their beverages. If they are not paid on time additional charges are put on them to be met and may eventually lead to serious losses on behalf of the company and bad press because a company whose brand sells itself,would not need to be involved in any scandles relating to political or bad press relating to its products. Government also have standards on how produce should be manufactured and distributed, if coca cola produces less than average quality drinks it would be required to seize their distribution causing them to make a loss a fine has to be paid in order vor them to resume and meets its obligations. Some other factors Might include some such as Stability of neighbours,employment and operational laws,corruption levels and sometimes bureaucracy issues.

ECONOMICAL : These factors impact the organisation significantly more on how it should run the business and how it can make more profits compared to losses. Some economical factors include exchange rates,inflation rates,interest rates,cost of living etc. There are two ways these economical factors can be broken into. These ‘macro-economical factors’ deal with management of demand in the economy. This relates to the policies and taxes that government brings up for the organisation to use. These factors are about the way coca cola and its customers spend their income. An economy with rising inflation rates would have unpropitious effect on the pricing and purchasing power of customers (according to Team FME,2013,p14).

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SOCIAL : These involve the beliefs and attitudes of the population. Some factors include; population growth rate,health consciousness,income statistics,education and career trends and age distribution. These have direct impact on the company because it helps them understand their customers and what drives them.(according to)
Population growth rate changes affect coca cola when the demand and supply of goods in an economychange according to the population in the area being targeted. This factor influences coca cola greately as a non alcoholic beverage company, it has to maintain strict differences in cultures. Health consciousness meaning it uses products and ingredients that are not harmful to ones health.

TECHNOLOGICAL : Technology is vastly changing everyday. This helps create new opportunities for products to be made and imoroved. Having up to date machines and technology, it helps coca cola look at ways it can inhance its produce and bettef its quality. For example its bottling has changed drastically over tbe years and still is. Technology allows them to compare its existing from its previous bottles and see how the years to come can be imoroved with the upcoming trends. Marketing and distribution of their products is also made better and quicker with technology. For instance, the company was founded in the United States Of America, but thanks to technology it has vastly spread all around the world that now over 200 counties are able go acquire the branded beverages and is dominating the market everywhere. Devices such as computers,laptops,tablets,etc allow coca colla to back up all its information onto servers that store and keep he information safe about their productions and help them advertise over a broad network.

ENVIRONMENTAL: These factors have become more important over years because of the increased scarcity of raw materials. Most companies are looking at recycling as a main goal toward saving the environment. People of specific geographical regions might have similar tastes and requirements which makes it more expensive. There are environmental acts and laws that are passed by government that need to be followed. Some environmental factors might include, weather,climate and geographical locations. Potential financial losses may occur from countries with contaminated water supplies. For example in a country such as Zambia, before coca cola can market and distribute their products there,they would need to havea look at the environment there…economically. This will enable them to assess if their product would be easily consumed by people living in that area. The weather too is a factor because very cold places would reduce intake of cold beverages and instead opt for somethjng more warm and soothing such as a cup of hot chocolate as opposed to a cool drink, making their sales to drop drastically.

LEGAL: Such factors include, health and safety, consumers rights and laws, product labelling and product safety. Companies need to know what is and is not legal in order to trade successfully. A company as big as coca-cola faces very tricky circumstances in that,trading on a global base, countries have their own set of rules and regulations and they have to abide by them in each different state they opperate/distribute from. Theres been a significant rise in the number of regulatory bodies that have been set up to monitor organisations’ observation on legislature in the country such as; consumer protection,waste disposal,employee welfare and how their investements will be taxed (according to Team FME,2013,p18). Laws change in every country,so with each new coca cola company opened comes new regulations to follow and be met.


Customer Segment means the practice of dividing a customer base into groups that are similar in specific ways according to searchsalesforce (techtarget.com) Coca cola company breaksdown their segments as follows; geographic segmentation- these target the different age groups, sex, lifestyles etc. Coca cola itself is the most popular drink amongst its production. Its most demanding making coca cola produce healthier products to please the healthier lifestyle drinks like diet coca cola, coke zero etc.
– Coca-cola zero targets people that are mindful of their diets and mind their calories onsumptions.
– Diet coke targets adults between 30-50 who are health conscious.
– Minute Maid targets children and adults roughly aged 1year to 10 and 40 plus years.
Demographic segmentation : Age 15 – 25 years old and 40 + Gender target both sexes with variety rinks.
Psychographics segmentation : Its all in the brand with this segment, brand conscious people wont drink everages of less known brands or popularity. So by them purchasing and drinking a brand well recognised as coca cola,they will be showing their status.
Customer desision making process has five stages,namey; need recovnition,information search,evaluation of alternatives,purchase and post purchase behaviour.
Under the psychographic segement we will look at how the decision making process is carried out.
Need Recognition : This is the process when customers realise they require something. This recognition is often a time triggered by a persons internal stimuli such as thirst or hunger, or external stimuli like word of mouth or advertisements. In a psychographic segment a person will using either internal or external stimuli realise they are thirsty from a long days work or craving a cold drink and that simple thought triggers something in their mind to purchase an ice cold beverage.
Information Search : this is simply recognising the need, the next step a perdon takes is acquiring more information on the topic relating to the product. This is the stage that has people going through customer feedback columns. Customers rely on how attractive the product displayed looks,word of mouth from a trusted person in thier lives or media advertisement. In for example a work environment where people interact and share various ideas and preferences on a specific drink,they are listening and analysing each thing sooken about the drink and from that the spoken words intice the customer if its a positive comment. Word of mouth,thus far has been the best way to get more people to attempt a new product in their lives.
Evaluation Of Alternatives : This is the stage where customers get to evaluate their options. Meaning they get to make comparisons on products manufactured by the company, and that of its competitors. The customer will therefore go for the one with the ability to satisfy them and meet their requirements. A customers attitude and involvement are what mostly influence the evaluation process. If the attittude is high then their involvement is also high causing them to evaluate more companies and brands toward deciding their purchase. Since they are already categorised as ‘brand conscience’ people,so far for them the brand of the beverage is whats most important and apealing to them. But with competituous big brands such as coca cola and pepsi, assessments and critisisms from customers would be greatly appreciated to help them break the tie and finally decide on what to purchase.
Purchase decision : This stage is when the item is picked to be purchased, but there are two possible factors that could disrupt the process,level of motivation to accept feedback and feedback from customers(according to Phillip Kotler,2009). For examole if any beverage under coca cola has been selected for purchase, the only thing that can cause someone to change their mind negatively about the drink is if someone they know walks over to them and discourages them about purchasing the drink. But with the psychographic segment group,they might consider not accepting the information given to them concerningthe drink because they already have high expectations for a well known brand such as coca cola and despite that still purchase the drink.
Post Purchase Behaviour : Is when a customer compares what they purchased to the expectations they had of the product before they tasted it. After drinking the drink, comparing it to what they thought it would taste like before they purchased it or what other customers commented about it and if their decisions was a right one. So far,with beverages under the coca cola company, all expectations of their beverages have been met,surpassed and exceeded beyong peoples beliefs.

Task 3

Customer loyalty is defined by Oliver (1999,33) as ” a deeply held commitment to rebuild and re-oatronize a preferred product or service in the future,despite situational influencers and marketing efforts having the potential to cause switching behaviours”. It goes beyond just simply enjoying the beverages of coca cola, its about being able to enjoy them so much that they help promote it informally by word of mouth. Customer loyaty is more profitable(according to Thomas and Tobe,2013). In that the expenses encountered when drawing new customers to the business appears more than retaining its existing ones. Gremler and Brown (1999) divided customer loyalty into three different categories namely; behavior loyalty,intentiinal loyalty and emotional loyalty.
Behavior loyalty is repeating purchasing behavior,intentional loyalty is the possile buying intention, emotional loyalty is met when a customer feels that a brand corresponds with their value,ideas and passion.
There are four reasons why customer loyalty should be promoted,listed below are two of the four;
Economic : with flactuations in the economy, switching of purchases from a beverage such as cocs cola to for example pepsi would result in economic disadvantage for the company. Loyalty is based on economic grounds.
Psychological : if the companys staff are relatable and friendly,they will assist in the promotion of loyalty. Because customers would become relaxed and comfortable when purchasing. If they experience a good service by members of staff,they automatically grow fond of the product.
Customer loyalty is therefore very important because it leads to the company having a wider customer base. The loyal customers help spread the word about the product. Customers tend to then stick with the brand because theyve grown to trust it causing them to make possibly more than a single transaction. Loyalty can somewhta equate to an engagement,in that if the customers are willing to spend time engaging with the brand,then they are likely to become loyal entirely with time. One imoortance of customer loyalty is that the loyal customers will be the best marketers of the product through word of mouth. Customers that are familiar with the coca cola beverages will become its biggest and non paid ambassadors,becaus they would prefer sticking to the brand they know and would openly advocate for it to others.
Customers that are loyal will have a positive experience with the products produced and become more likely to share. This helps coca cola because more people would bd able to influence others and it makes it easier for people to be convinced by people they know and trust. It also gives the company a positive head start to people unfamiliar with it. Loyal customers spend more money on trying out new products by coca cola because they are already familiar with its brand and beverages. If loyal customers continue getting good procucts and services,it eliminates chances of them making any purchase from rivalry brands.
Introduction of customer loyalty products would make it more possible for the company to grow its customer base,because they would purchase drinks as much and often as possible in order fir them to be deemed as ‘loyal’ and get rewards for their loyalty.
There are many programs that can be adopted such as Refer a friend Reward, the more you spend the higher your chances of winning a raffle prize e.g overseas trip,car, buy one get one free on selected beverages,

Task 4

A stakeholder is any person,group or organisation who can affect or be affected by the achievement of the organisation (according to Freeman,1984). An organisation should look out for its shareholders in meeting their interest,needs and viewpoints (according to Friedman,2006). Some examples of stakeholders include employees,shareholders,managers,suppliers,customers,distributors,competitors and government. Even though managers are considered as stakeholders,its believed by some that they see them as referees between investors and employees (according to Aoki,1984)
There are three types of stakeholders,namely; Internal,Connected and External Stakeholders. Internal Stakeholders are members of the organisation.Examples may include employees,managers and directors. Connected Stakeholders are the ones that have an economic relationship with the organisation e.g customers,suppliers,distributors,competitors,shareholders and suppliers. External Stakeholders do not have a direct connection with the organisation,but have interest in its activities and thus become partially affected by it. Examples; communities,society,press/media,government,pressure groups etc.
Stakeholders have different levels of power they can exert on the organisation. Power is defined as “the ability of individuals or groups to pursuade,induce or coerce others into following certain courses of action” by Johnson and Whittington(2017).


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