Customer Relationship Management 5d3ka

1.0 Introduction to Coca-Cola Company The global brand leading in beverage industry, Coca-Cola was born on 8 of May, 1886 in Atlanta. The first Coca-Cola syrup is produced by a local pharmacy, Doctor John Stith Pemberton. He brought the syrup down the street and sold it for five cents a glass. The new syrup is combined with carbonated water to produce a drink that refreshing and delicious. The brand name “Coca-Cola” was created by Dr. Pemberton and his partner. Dr. Pemberton thought that the two Cs will look great in advertising and his partner suggested the name as “Coca- cola”, which is now the top global brand.

Coca-Cola made their first

ment in ‘The Atlanta Journal’. Unfortunately, Dr. Pemberton did not realize the potential of Coca-Cola. He sold part of the business to various investors and before his death in 1888; he sold the entire interest in CocaCola to Asa G. Candler. Mr. Candler and then started to adopt personal control of the formula of Coca-Cola. In 31 of January 1983, the “Coca-Cola” trademark was ed and in the same year, dividend is paid to investors at the second annual meeting of the company. The business grew continually in 1984. The manufacturing plants was started to build is other states such as Los Angeles, Chicago, Dallas, Texas and others. In 1985, Mr. Candler announced that Coca-Cola is now drunk in every state in United States in the annual report. In 1904, Coca-colas ment was firstly appeared in international magazines and its annual sales hit one million gallon. Coca-Cola also goes by the name of ‘the most refreshing drink in the world’ in 1900s. Coca-Cola continues to develop and becomes the world’s top leading brand in soft drink industry. Undeniable, Coca-Cola is symbolizing a huge success of a business. Thirsty

consumers around the globe now enjoy Coca-Cola Company products 1.7 billion times every single day—about 19,400 beverages every second.

1.1 Introduction to Customer Relationship Management CRM is the core business strategy that integrates internal processes and functions, and external networks, to create and deliver value to targeted customers at a profit. It is grounded on high quality customer-related data and enabled by information technology.

2.0 SWOT ANALYSIS STRENGHT The strengths of the customer relationship management of the Coca-Cola business organization are positives elements that help promote the brand of the company. Maintaining good customers relationship is something they do well and is under their control. The strength of its CRM is basically what gives them the edge in most areas in business over their competitors around the world. The following sections will outline the main strengths of Coco-Cola Customer Relationship Management; 1. Coca-Cola provides lower prices for their products to their customers: Keeping costs lower in producing their products to their consumers than their competitors, basically help them to provide costs advantages which will benefit their customers all over the world. Competitors pricing is very relevant element for Coca-Cola’s overall success, as this keep them in line with their rivals, if not above them. 2. Coca-Cola has an extensive customer base system, which is a major strength regarding sales and profit: due to their good inter and intra-relationship with their customers, CocaCola has been successfully connect the people who drink Coca-Cola as their loyal customers where by about 80% of its revenue come from those loyal customers. CocaCola has the ability to sell and make products around the world which is unique to CocaCola. 3. Coca-Cola also introduce a promotion which is ‘’my coke Reward ’’, this is to encourages customers to purchase Coca-Cola products. The promotion is given when customers collect bottle caps and packages to collect points to redeem later on either as lower products price or free products. This particular activities help build strong customer

relationship between coca cola and its customers. As more customers participate in ‘’my coke Rewards’’ program the database grows and helps to personalize the customer.

4. Coca-Cola provides high quality products/services to their customers: Providing better quality goods to their consumers are the main priority for its business, this also enable in ensuring the customers return for more products. They ensure organized and consistent safety and quality products though strong governance and compliance to applicable regulations and standard policies. Coca-Cola manufactures its products following strict rules and policies. Besides that, their products are tested in modern laboratories using state of the art method with appropriate technologies. They specifically measure key products and package quality attributes by focusing on ingredients and material, as well as samples collected from trade. And lastly they make sure their products meet company requirements and consumer expectations in the marketplace.

WEAKNESS Weaknesses of a company or organization such as coca cola are the things that need to be thoroughly improved or perform better. These are the negative aspect that needs to be under control for the benefit of the company. Weaknesses are also things that normally place the development of an organization behind its competitors, or basically stop them being able to meet their objectives. This below section will present main weaknesses of coca cola, which are;

1. Coca cola exhibits less price sensitivity than their new customers: Over pricing of products/services to their new and fresh customers makes them less uncompetitive with their competitors, which is a major weakness of the company. Coca cola normally makes their old and regular customers feel more comfortable in enjoying less discount and sometimes free products. Unregularly customers only enjoy free or less discount on a 2.

lucky competition, sometimes they get less discount when they purchase more products. Marketing and sales costs for maintaining customer relationship had significantly drop: This happen basically because of the significant focus on carbonated drinks, however this has make the CRM less effective in dealing with the excessive complain from their customers. In result to that, coca cola lost few of its customers around the world. And as we know a limited customer based is a major weakness for coca cola as it means they

have less people to sell or market their products to. 3. Coca cola has a much undiversified product portfolio with its CRM: Unlike most companies customer relationship management, coca cola is still focusing only on managing customers based who only purchase beverage products without any other products. The overall consumption of soft drinks is stagnating and coca cola will find it hard to penetrate to other market such as selling food or snack, when it will have to sustain current level of growth. This makes very difficult for customers to stay on only for type of products, and also makes the CRM less productive in the company.

OPPORTUNITY

Opportunities are external changes, trends or needs that could enhance the business or organization strategic position of coca cola, or which could be a benefit to them. The following are the outline opportunities coca cola is currently facing; 1. Coca cola could enjoy much more benefits from expanding their online customer relationship management by introducing more opportunities for online shopping for online shoppers/internet s to get some chance to increase the CRM system in the company. This can also increase the income of the company, which can eventually enable them to penetrate the online marketing system. 2. In order for coca cola to grow and increase its customer base, they can make some important changes such as providing homes for homeless people, giving out free products for people who barely afford it or making lower prices. These opportunities will be a big step to build a strong CRM because more customers will be attracted around the world. 3. Coca cola could also build a very strong customer relationship management by establishing some branches in developing nations worldwide, in order to help the less privileged to also enjoy the taste of the drink. Although developed nations have a high presence of coca cola and have also strong CRM, some undeveloped or developing nations are yet to be introduced. This will also build a better CRM in those nations as well.

THREAT

Threats are factors which may restrict damage or put areas of coca cola business at expose risk. They are factors which are precisely outside of the company’s control. Being aware of these threats and being able to prepare for them makes is better for the company; this section is valuable when considering contingency plans and strategies. Coca cola is currently facing some main threats which are; 1. Customer’s relationship management might such as customers lifestyle management could lead to less of demand for coca cola products/services. This could happen when the customers decided to change the beverage food to other soft drinks such as Malta, natural fruit juice, because some of the customers complain about the healthiness of coca cola products. When the switch happens, this can affect the CRM in the company which can tarnish the reputation of the firm. 2. Coca cola customer relationship management could be threatened by the growing power customers have to set the price of their products/services. Customers could one point in time demand for lower product price. When their demand is not satisfy, the customer relationship could be broken, when they stop purchasing coca cola product. 3. The most important raw material sourcing for producing coca cola products is water, therefore when there is a water scarcity, most likely the customer relationship could be affected, because the only important way coca cola keep their customers in touch is selling products to their. So when there is not water to produce the products, coca cola will lost most of their customers since they only major in producing beverages drinks only. 3.0 CUSTOMER EXPERIENCE CONCEPTS

Customer Experience is a target customer’s perception and interpretation of all the stimuli encountered while interacting with a firm. For instances trust, transaction, advertising, product quality, price, expectations, competitors and so on. There are a number of core concepts that worked with customer experience management, Touch point (point of ) refers to customers come into virtual or actual with a company’s products, services, communications, etc. Coca Cola Company main website is one of the touch points, as customer can be loading videos, can view many countries coca cola main pages, for instances, Malaysia’s coca cola main page, it shows products, the coca cola types and nutrition information, media stream, history for the coca cola company history with years’ timeline, videos, these videos show happiness, the attractive scenes to attract customers and even recipe which how to cook with coca cola. Customer is important to Coca Cola Company, to know customers need and expectation, and discover more new surprises to attract new customer and maintain existing customer brand loyalty. Customers can talk to Coca Cola Company through send an email, send letter, call and submit an idea. Coca Cola has a website which link to many areas which different websites.

Moment of truth (MOT) occurs during the moments interacts or between customer and a firm, any organizational output that leads the customer to form an impression of the firm. Coca Cola company has many vending machines around the worlds, and there are some of the innovative vending machines, for instance, the soda giant’s new touch screen soft drink dispenser, bust a Move in South Korea which dance exactly the dance steps of the popular band 2PM as the screen showed, the more the moves copied correct, more Coca cola will be dispensed

out, Happiness Strike which delivered happiness in the college campus, keep dispense coca cola and also foods, in National University of Singapore has a hug me machine, once hug will be dispense coca cola, Hey Pal, Need a Lift vending machine in Argentina, to celebrate the International Friendship Day, installed this 12-ft-tall machine, which could be only reached by helping from friends, at least 2 people to get cokes and so on. Coca cola uses a number of touch points to interact with customer well, from products, services, places, people and technologies work well. All these innovative vending machines form a good impression of the Coca Cola Company.

Engagement is a word means customer’s emotional and rational response to a customer experience. Companies that design those creative, innovative vending machines, this in order to increase higher positive engagement and build up strong customer experience, to make Coca Cola has good impression to the worldwide customers. Thus, by always offering the same customer experience, it could not gain customer attention and good impression, therefore, Coca Cola Company always come out new events, creative vending machine which work with modern technology, videos and food recipes which use coca cola as one of the ingredient to cook the foods.

3.1 HOW COCA-COLA OFFERS CUSTOMER VALUE

Coca-Cola Company also has created the value for their customer. Actually, customer value is important things to help the Coca-Cola Company to survive and maintain their long-term relationship with customers. They know about the concept of customer value can divide by two —desired value and perceived value. Therefore, the customer has their desired value such as the customer want health and wellness trends, so the Coca-Cola Company has focused on packaging architecture. When the customer strongly suggest for the Coca- Cola soft drink have smaller packages and for packages, thus the Coca-Cola Company don’t give them too much liquid and just give them ability to refresh and enjoy but not necessarily to over-customer’s needs. Besides that, they have also do the product innovation to obtain the customer value. Since, more and more people are choosing low-calorie foods and beverage so Coca-Cola Company focus on low-calorie beverage category, with the introduction of Diet Coke with Lemon, Diet Coke with Lime, Diet Vanilla Coke and so on. Hence, they have building a one-to-one relationship with customers. Marketer of Coca-Cola Company is able to listening what customers want and the ability to communicate or understand almost on a one-to-one basis. Another they have used the perceived value to satisfy the customer when the customer willing pay the sacrifices like the money but the customer still can received the benefit from the Coca- Cola Company. For examples, Coke has a mysterious taste so Coca-Cola Company create unique benefit as provide and share more recipes to cook with Coke through their company website. This can be created the customer value when the customer buy it and cook it. And this Coke seems to be always having good taste with sandwich, chips and snack for young generation. Based on the tagline of Coca-Cola Company is “Open Happiness”, so they always think about many ways to achieve and satisfy their customer. Thence, they ran a promotion that

many people know which is called “Share a Coke” that was very effective. For instance, the customer can write their name in virtual can and then share the value to other people. And during the Chinese New Year in 2015, Coca-Cola Company printed lucky Chinese words onto Malaysian edition Coke can such as for fortune, for prosperity, for peace and so on. Furthermore, some people buy Coke because it is widely accepted by any countries. In addition, Coca-Cola Company maintains the longest continuous relationship with the Olympic Movement. So, almost the customer and athlete will feel to reduce perceived risk because that movement is very famous and everyone know it, means that Coca-Cola Company create the value proposition which is promise of value to be delivered by them to solve the customer care about drinking a Coke. Moreover, every year they donate their profits to charity organizations in Turkey like “Coco-Cola Hayata Arti Vakfi”. Based on this situation, the customer will believe the Coca-Cola Company are mainly related with environmental and “friendly-company” aspect. At the end of the 2014, Coca-Cola Company and Monster Beverage Corporation announced plans for a long-term strategic partnership to develop for both companies in the global energy drink category. For the product synergies, both companies simultaneously complement resources and assets, that the Coca-Cola Company can create value for customers come from the Monster Beverage Corporation.

4.0 Managing the customer life cycle. Explain the relationship between theory and practice in the company. Customer Reach

Coca-Cola Company understand their product have a target audience that can be defined. Firstly, their primary goal is to create marketing campaign that speak to them directly. Thus, they will take the sales promotion to get the attention of the people they want to reach. Because they know sales promotion is any behavior-triggering temporary incentive aimed at customer. For example, they will give some discount for any customer who able to buy more than 24 pack of Coca-Cola Regular, then get 25% off. In addition, they also give the coupon to customer purchase one get one free. And they have the free s such as calendar or candy tray during the Merry Christmas. Furthermore, Cola-Cola Company use the merchandising in order to any behavior-triggering stimulus or pattern of stimuli that takes place at retail. As the Coca-Cola Company provide a Coca-Cola merchandising sale truck to sell their product in the department store. Besides that, they designed or placed more their merchandise in retail store to attain customer extra attention.

Customer Acquisition As a marketers of Coca-Cola, they able to use operational customer relationship management tools. For example, they will apply event-based management to generate new customer. Based on this situation, Coca-Cola Company has launched gesture based marketing in Singapore. That is a coke vending machine and in front the machine have a logo name is “Hug Me”. And this vending machine just to receive the currency of hugs instead of money. Moreover, the consumers have to squeeze the sides of the soda dispenser in a specific way to make a free Coke come out. That’s means Coca-Cola Company disseminate their marketing message “Open Happiness” to reach the remaining people and attract the people willing to take some sort of

action such as Coca-Cola Hug Machine is to deliver the happiness to all of people in there. Therefore, they hope the “Hug” can goes spread throughout the Asia.

Customer Retention The definition of customer retention is the maintenance of continuous trading relationships with customers over the long term. It is also the mirror image of customer defection. (Buttle, 2009) As we know that, Coca-Cola Company is the first place for soft drink sales in Malaysia. They have many strong strategies to retain customer to purchase their soft drink. First of all, they must innovativeness either for their product and packaging. For example, they have provide many different types of Cola drink such as classic, light, diet and others. This will satisfy those customers to select what they prefer because some of them will like to get healthy and choose the sugar free drink. Moreover, the different types of packaging also will retaining the customer and sales. The packaging included 250ml, 500ml and 1500ml. The company help their customer easily to choose what they want. For example, customer will purchase the 1500ml if they want to make a party in house and share with guests. On the other hand, customer more prefer to purchase 250ml for personal drink. Furthermore, promotion also is the one of the strategies to make customer retention. Sales promotion can build repeat purchase. For example, the limited edition glasses from Coca-Cola Company was made promotion in MacDonald’s’ with purchase one meal. Moreover, free a coke can with purchase of GSC combo 3 in Golden Screen Cinema. A successful to customer retention, it will build the brand loyalty for the customer.

Customer Commitment

Customer commitment mean that how a company to serve their customer for make a trust with their customer and maintain a good long-term relationship with customer. The customer trust will help the company to get the higher sales and hit the goals of company. Moreover, it may help the company to operate for long period. There has three forms of commitment which is instrumental, relational and values-based. For example, as the world’s largest beverage company, Coca-Cola Company promised to bring safe, great-tasting, quality beverages to customers at a rate of 1.8 billion servings per day. Their beverages offer hydration, refreshment, and moments of affordable happiness for people worldwide. They are committed to making sure all of the thousands of beverages they produce meet the highest standards for safety and quality. As a customer, we wouldn’t see any soft drink that selling in the market is expired made from CocaCola Company because they promised to exchange fresh beverages with the retailer if expired and hasn’t sell out. Furthermore, the price of the drinks maintain at low cost even though the economy deficit in Malaysia. They keep the same quality of drinks and never change the taste. This actions are make customer trust, then build the customer loyalty to their product.

References

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