Marketing Campaign & Strategic Planning Assignment

Marketing Campaign & Strategic Planning - Assignment Example Once the customer is loyal to a company then an imaginary contract is signed between the company and the customer which becomes hard to break. A loyal customer will be hard for the other companies to influence and in this way loyalty will act as a revenue sustaining agent for the company. Another major benefit of satisfied customers is that they become an un-paid marketing agents for the company’s brand, as they are unintentionally carrying out a word of mouth campaign for the company which further gives a boost to the sales of the company. It is true that a satisfied customer increase the profitability of a company, but a dissatisfied customer decreases it by two folds. It is important for a company to pay special attention to what the customers wants rather than giving them something they hardly value. A dissatisfied customer will always share his/her poor experience with others which will further hurt the brand name. According to an article of customer service facts, a happy customer will share his/her experience with 4-6 people however a dissatisfied customer will tell it to 9-15 people. (Customer Satisfaction Facts) In this way a bad experience of one customer can take away 9-15 possible customers. This high risk of bad mouthing of a dissatisfied customer increases the marketing costs of the company which in the struggle to regain the initial position runs heavy advertisements and promotions to re-capture the place in the customers mind. (Richins et al

Role of a Management Consultant Essay Example | Topics and Well Written Essays - 2000 words

Role of a Management Consultant - Essay Example B., 2001). The same brand is part of a long, classic, one-on-one competition with its archrival, PepsiCo. Inc. Coca Cola experienced a rapid growth in sales and consumer –preference, thanks to Roberto Goizueta who raised Coca Cola to the heights of performance while he was CEO from 1981 to 1997. Using his sharp analytical skills and market foresight and risk-taking tendency, Goizueta took Coca Cola into the direction of high sales, increasing market-share, revenue gains and high profit margins. He revolutionized how the soda industry is run and showed the world that just by focusing on Coca Cola’s principle black beverage; the company became a top-notch giant. This very philosophy inspired Coke’s followers, and even the Board of Directors, which included tycoons such as Warren Buffet, Herbert A. Allen and Donald Keough. They remained admirers of this approach and frowned upon any notions of diversification, unlike what was happening inside PepsiCo. Throughout the nineties, through this very approach, Coca Cola saw its rise in the world of beverage as an undisputed winner over PepsiCo. Inc. Goizueta took some very successful decision during his time, one of which was to form a new company under the name Coca Cola Enterprises, in 1986, which handled the US bottling operations for Coca Cola. This, immediately, helped Coca Cola in terms of the debt burden and also, raised their stock volumes, while reassuring quality bottling and distribution. (Cravens & Piercy, 2009). According to Cravens and Piercy (2009), this move turned out to be quite a profitable one as Coca Cola could erase off $2.4 billion from the balance sheet. Moreover, having formed Coca Cola Enterprises, US bottling operations were handled well and timely distribution channels were assured. He was known to be risky, as he himself used to admit. His believes were of the nature that risk-taking is a necessity for growth and development. In a growing consumer-market, playing safe all the time could mean losing out on opportunities and business. Goizueta is renowned for another important move: his non-contemporary approach of globalization of brands. ‘Think global, act local’ was the underlying philosophy of Goizeuta to expand and capture foreign markets. Unlike the general wave of globalization, he insisted that, to develop a successful multinational brand, it was important to think globally while acting in the local context. He explained that standardization and uniformity represent a strong and consistent image of a brand and it triggers a sense of surety in the minds of consumers worldwide. This uniformity can help create a very powerful image of the brand; while also considering vital selling points and marketing campaign specifics of differing cultures and geographies. At the very end of all this positive period, it did become quite apparent that the direction in which Coca Cola was heading into, had a dead-end. Arguably, his headstrong, upfro nt style of leadership, even though raised Coca Cola to reach new heights in the short-run; however, his moves, somehow, created a recipe for future disaster. His decisions focused more on the bottling operations than the actual customers. It is important to note that Mr. Roberto Goizueta maintained that Coca Cola did not need diversification to increase revenue. Instead, according to Suhaib Riaz (2008), he borrowed millions