Coca Cola Marketing Deliverable
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Transcript of Coca Cola Marketing Deliverable
Coca-ColaMarket Deliverable
There are two types of major beverage categories:
(CSB) - Carbonated Soft Drinks (LRB) - Liquid Refreshment Beverage
CSB recorded a 2013 U.S. volume of 8.9 bil 192-oz cases ● CocaCola had a 2013 volume of 3.7 bil
○ Down 2.2% from 2012
LRB recorded a 2013 U.S. volume of 15.1 bil 192-oz cases● CocaCola had a 2013 volume of 5.1 bil
○ Down 1.1% from 2012
Micro-Industries important to our IPC Solution:
1. Stilled Bottled Water- Vitamin Water Zero
1. Ready-To-Drink-Tea- Honest Tea
1. Fruit Juice Smoothie- Odwalla
1. Coconut Water- Zico
5. 5. New Product: Coca Cola Life (Naturally Sweetened Soda)● Initial feedback: “lackluster”, “nothing to set the world on
fire” - Ali Bibadj, senior analyst at Sanford Bernstein.
Section 1 - Beverage Industry Market Size and Coca-Cola’s Market Share
Section 2 - Market Segmentation
by Behavior:
Benefits sought by consumer: - To live a healthy life while being able to enjoy CocaCola products
Buyer status & loyalty to Coca-Cola: - Need want two things:
1. Retain consumers who think about leaving Coca-Cola due to health concerns.
2. Introduce metropolitan areas to the health-movement.
by Demographics
Gender: Female (Mother)Familial Role: Mother who does grocery shoppingAge: 35-44 years oldFamily Size: 3-5 people, 1-3 childrenEducation: Well educated in dangers of obesity/diabetesIncome: $40,000-$60,000
by Geography
To chose states that are on the verge of slipping into a high obesity rate due to soda and that are aware of negative impact of soda due to a severe sugar tax.
Metropolitan areas of:1. Indianapolis2. Chicago3. Louisville4. St. Louis5. Kansas City6. Columbus7. Cincinnati8. Cleveland.
* Focus on Suburbs a. highest obesity ratingsb. lowest sales of the Coke Revived products (room for growth)
by Psychographics
Main focus will be for tech-savy mothers who are busy with children, she wants the best for her family but does not know her options.
Section 2 - Market Segmentation
Section 2 - Chosen Target Market
● Primary grocery shopper for the family: Individual who makes the purchase decisions for the family ○ Females, ages 35-44, concerned about health of their family
■ Focus: families that have members with immediate health conditions (Obesity, Diabetes) ● Midwest states: Indiana, Illinois, Kentucky, Missouri, Ohio
○ Metropolitan suburban areas surrounding the following cities: Indianapolis, Chicago, Louisville, St. Louis, Kansas City, Columbus, Cincinnati, and Cleveland
○ Regions chosen due to higher tax rates on Carbonated Soft Drink products, with a correlation of high obesity and diabetes rates
The Buyer’s Decision Process
Need a healthy but refreshing beverage
Research taste and nutrition of soda alternatives
Look at healthier brands, but don’t sacrifice taste
Choose us because of history of refreshment
If taste expectations are met, they stay
Evaluation of Alternatives
Need recognition
Information Search
Purchase decision
Post purchase behavior
Section 2- Chosen Target Market
VS
Hip & Cool Traditional
Fun & Flavorful
Health-Conscious
KOPEP
DPSG
Section 3- Positioning Coca-Cola
Z
N
Key: PEP = PepsiDPSG = Dr Pepper SnappleKO = CocaColaN = National BeverageZ = Zevia
Product: Coke RevivedA cluster of 5 natural beverage products:
Place: Suburban areas around:Indianapolis, Chicago, Louisville, St. Louis, Kansas City, Columbus, Cincinnati, and Cleveland
Two Influences:1. Highest Obesity Rates in the
areas listed.2. Low Sales for Revived
Products in Suburban Areas.
Promotion: “Our Family Cares About Your Family”
1. 5% sales Donation to the American Diabetes Association with each purchase of a Coke Revived Product.
2. Commercial centralized around family, health and natural products.
3. Social Media Campaign:A. Develop an online site (CokeFit) where consumers
can set goals and track their health and fitness progress. This will be an interactive site where consumers can share fitness plans/ experiences.
B. Dig into social media platforms to share nutritional information about the health benefits of “Coke Revived” products,
C. Hiring brand ambassadors who fit the family image.
Price: + These are pre-existing products, prices do not
change+ Target middle-class families that want to consume healthier beverages+ No specials/discounts
Target Customers:Females
35-44 years of ageWell-educated
Health-Conscious Mothers with 1-3 children
Midwest RegionMiddle Class
Section 4- The Marketing Mix
Target Alternative Response Expected Results Quantify the Change
Health-conscious consumers that currently don’t drink CSDs.
Consumers that will stop drinking CSDs in the future.
Move away from the CSD industry and focus on Coca-Cola’s five natural products.
Expecting some resistance from current Coca-Cola drinkers. Healthier market will be satisfied.
3% increase in the other family products leading to a total increase in revenue of $16.7 Million. This will compensate for some of the loss from the CSD market.
Section 5- Alternative Response #1
Alternative response #2
Target Alternative Response Expected Results Quantify the Change
Current CSD consumers looking for a more natural/healthy CSD substitute.
Expand and focus the “Life” brand.
It will grasp the attention of the consumers trying to become more healthy. May lead to disappointment from avid “regular” soda drinkers.
CSD market is decreasing around 3% per year, this healthier option will increase to a 0% growth. An eventual positive CSD growth rate will emerge.
Life Life
Coke Life Sprite Life Fanta Life
Section 5- Alternative Response #2
Target Alternative Response Expected Results Quantify the Change
Families who want small beverage portions and easy accessibility.
Keurig + Coca-Cola = Cold beverage, at-home, carbonated soda maker.
Entering this market will increase market share and growth in the beverage industry. New growth potential with at-home industry.
Sodastream 2013 revenue = $562 million. Coca-Cola will have a larger revenue than Sodastream due to better known products.
Section 5- Alternative Response #3
The Wall Street Journal. Dow Jones & Company. Web. 21 Oct. 2014. <http://online.wsj.com/articles/SB10001424127887323783704578245973076636056>.
Candice Choi Ap Food Industry Writer. "Coke to Slash Costs as Soda Sales Remain Flat." ABC News. ABC News Network. Web. 21 Oct. 2014 .<http://abcnews.go.com/Business/wireStory/coke-
profit-revenue-fall-flat-soda-market-26339782>.
"Contact Support." Contact Support. Web. 21 Oct. 2014. <http://saskatoonfringe.org/cgi-sys/suspendedpage.cgi>.
"Obesity Prevalence Maps." Centers for Disease Control and Prevention. Centers for Disease Control and Prevention, 09 Sept. 2014. Web. 21 Oct. 2014.
<http://www.cdc.gov/obesity/data/prevalence-maps.html>.
"Planning Meals." Centers for Disease Control and Prevention. Centers for Disease Control and Prevention. Web. 21 Oct. 2014.
<http://www.cdc.gov/healthyweight/healthy_eating/meals.html>.
"Research in Focus - Will Coca-Cola Life and Pepsi True Damage Perceptions of Stevia?" Will Coke Life, Pepsi True Damage Stevia Chances? Web. 21 Oct. 2014. <http://www.just-
drinks.com/analysis/research-in-focus-will-coca-cola-life-and-pepsi-true-damage-perceptions-of-stevia_id115154.aspx?utm_source=news-feed&utm_medium=rss-
feed&utm_campaign=rss-feed>.
"Taste Test: Bottled Iced Tea." Serious Eats: Drinks. Web. 21 Oct. 2014. <http://drinks.seriouseats.com/2012/05/taste-test-best-bottled-iced-tea-honest-tea-snapple-arizona.html>.
Berman, Jillian. "This Is Coca-Cola's Biggest Nightmare." The Huffington Post. TheHuffingtonPost.com, 18 Feb. 2014. Web. <
http://www.huffingtonpost.com/2014/02/18/soda-decline_n_4808978.html>
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