Coca-Cola Market research Link to case study here Overview: a case study of the Coca-Cola portfolio of products and an examination of new product development.
Learning objectives: ? to identify the existing portfolio of products owned by Coca-Cola ? to understand the type of market research undertaken by Coca-Cola ? to understand the Ansoff matrix in relation to Coca-Cola ? to examine new product development at Coca-Cola. Introduction (9 minutes) Introduce the lesson: you will look at the range of products that Coca-Cola produces and examine the factors involved in new product development.
This will involve an analysis of the market research it might use to develop new products. The Coca-Cola company is the world’s leading and best known drinks supplier. Its mission statement is: “The Coca-Cola Company exists to benefit and refresh everyone who is touched by our business. ” The company has a portfolio of products, these are at different stages in the product life cycle. The aim of Coca-Cola is to ensure the product range offers something for every occasion.
Student task: explain the advantages and disadvantages of having a portfolio of products.
Answer: Can meet a variety of needs and serve several segments; may be able to meet needs more precisely and tailor make marketing accordingly BUT may be more difficult to manage and mean shorter production runs and less economies of scale. Market research (20 minutes) To increase its range of products Coca-Cola has: a) developed its own products internally b) acquired other brands e. g. Dr Pepper, Oasis and Malvern. To develop products Coca-Cola must undertake market research and understand the needs of different segments.
What part does market research play in the marketing process? How can market research help a company to develop a customer rather than product based approach? How can market research help companies like Coca-Cola to develop an appropriate product range? How will market research help Coca-Cola to develop an appropriate marketing mix for one of its products e. g. Powerade? Student task: working in teams, students to consider the different brands produced by Coca-Cola and try to identify the different segments the company serves. Collect ideas in and compare these.
Students then to read section 3 and make notes on market segments and the way in which Coca-Cola respond to these. Qualitative and quantitative market research (20 minutes) Ask students to suggest ways in which Coca-Cola might research its market. Collect these ideas and then try to categorise them e. g. primary (first hand) and secondary (using existing data); quantitative and qualitative. Why does Coca-Cola sometimes use quantitative market research rather than qualitative research? Why does Coca-Cola sometimes use qualitative market research rather than quantitative research?
What are the benefits of carrying out a simulated test market before going for a full launch? Coca-Cola Vanilla was already an established successful product in the US. Why then was it necessary to research the feelings of the market about Coca-Cola Vanilla before launching the product in the UK? Product development (10 minutes) When developing new products, firms such as Coca-Cola must consider how the new products fit with the existing ones. This can be analysed using the Ansoff Matrix. Explain the nature of the matrix using the examples for Coca-Cola in section 7.
Student task: working in teams students to consider the advantages and disadvantages of each of the four strategies in the Ansoff Matrix. (e. g. consider risk element and link to managerial experience, diversification involves moving into completely new areas and so have high risk in terms of controlling this new business or planning for it). Review (1 minute) Coca-Cola has a portfolio of products enabling it to meet the needs of different segments. Before launching a new product it gathers market research to ensure it understands the needs of its market fully.
Homework Complete the worksheet on this case study. Coca-Cola describes itself as market oriented. Discuss the advantages and disadvantages of this approach (e. g. understand customers and therefore less risk than being product oriented, should enable appropriate marketing. However also need to consider the strengths of the firm and match this to market opportunities i. e. consider asset led marketing). Discuss the factors that determine the value of market research to a firm such as Coca-Cola that is considering a new product launch. . Students to read section 6 and produce a flow chart showing the research process used by Coca-Cola. Coca-Cola Market research Questions and Answers What part does market research play in the marketing process? Marketing is the process of anticipating, identifying and meeting customer needs and requirements. Market research is then conducted to find out about these customer requirements through primary and secondary research techniques. How can market research help a company to develop a customer rather than product based approach?
A product based approach exists when a company produces a product, which is successful and therefore feels that it does not need to spend much time on marketing. However, by ignoring the wishes of customers, the business fails to move with the times and can get caught up by rivals that do listen to customers and come up with a better offering. Market research is therefore essential to give a market focused approach to product development. How can market research help companies like Coca-Cola to develop an appropriate product range?
An appropriate product range for a company like Coca-Cola is one that meets the needs and requirements of consumers across the globe. Coca-Cola operates in a number of segments of the non-alcoholic beverages sector. In the UK it has a broad range of over 80 products. Market research helps Coca-Cola to find out about current perceptions of the existing range, and customer driven opportunities to extend the range. How will market research help Coca-Cola to develop an appropriate marketing mix for one of its products e. g. Powerade?
Powerade is a sports drink produced by Coca-Cola. It will appeal to a particular segment of the soft drinks market – i. e. principally sports and keep fit enthusiasts. Market research indicates the sort of product they are seeking to meet their needs – for example to provide energy. Market research will reveal the best places to promote and distribute the product, e. g. sports centers and sporting venues, as well as an appropriate price that gives consumers value for money. Why does Coca-Cola sometimes use quantitative market research rather than qualitative research?
Quantitative research is a good way of collecting a lot of information from a large sample of consumers. By using a broad population sample it is possible to get an overview of the wider appeal of products, across an audience that is representative of the total market. Why does Coca-Cola sometimes use qualitative market research rather than quantitative research? Qualitative research is based on smaller samples but makes it possible to gather far more detailed information. For example, focus groups of young mothers were put together to discuss various aspects of Pooh Rooh Juice.
Allowing them to talk freely gave researchers key insights into the thoughts and feelings of typical consumers. What are the benefits of carrying out a simulated test market before going for a full launch? Coca-Cola often carries out simulated test markets using a particular retailer or region of the country that is in many ways characteristic of the overall market. It is possible to apply the marketing mix in the test market and to find out how it is received by consumers. Prior to the test, the concept can be tested by interviewing potential customers. Questionnaires can then be distributed relating to product attributes.
Recall research can then be carried out after the product has been tested, to see how many consumers recall about the product. Carrying out a test market makes it possible to identify weaknesses in the marketing mix that can be improved. It is also possible that if the results are poor then the product may be scrapped before going to the expense of a full market launch. Coca-Cola Vanilla was already an established successful product in the US. Why then was it necessary to research the feelings of the market about Coca-Cola Vanilla before launching the product in the UK?
Different markets are made up of consumers with different tastes. Just because Coca-Cola Vanilla had been successful in the US did not mean that it would be a success in the UK. Therefore, the product concept needed to be researched here, for example through taste testing. This enabled product researchers to identify the best flavour for the UK, as well as the best graphic designs. Consumer focus groups helped Coca-Cola to identify the best look for the product, as well as the best taste for this country.
👋 Hi! I’m your smart assistant Amy!
Don’t know where to start? Type your requirements and I’ll connect you to an academic expert within 3 minutes.get help with your assignment