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Coca-Cola

By Bernard Hunt,2014-03-20 10:05
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to understand the type of market research undertaken by Coca-ColaTo develop products Coca-Cola must undertake market research and understand the

Coca-Cola Lesson Plan from The Times 100 website: www.tt100.biz

    Coca-Cola

Marketing and the business

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 examine new product development at Coca-Cola.

Introduction (5 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 (collection) 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.

Which of the following are descriptions of the terms:

    ; product range

    ; market research

    ; product life cycle.

    i. the stages of growth of a product from its early development to maturity. ii. the process of identifying, and finding out about customer needs and requirements, and about

    markets and competitors.

    iii. the different types of products that are part of a businesses portfolio.

Soft drinks (5 minutes)

    Student task: Students to read section 2 and summarise the activities of Coca-Cola GB including a list of its brands and new products.

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.

Market research (15 minutes)

    To develop products Coca-Cola must undertake market research and understand the needs of different segments.

    What is market research and how does it help an organisation like Coca-Cola to develop a product portfolio?

    Visit www.tt100.biz for Downloads - Theory - Quizzes - Company Info - Current and Previous Case Studies

Coca-Cola Lesson Plan from The Times 100 website: www.tt100.biz

    Which is the largest component of the non-alcoholic beverage sector? Which is the largest component of this sector?

    Can you identify one component of the soft drinks sector that is currently small but has the potential to become much larger?

Identify one segment of the drinks market that Coca-Cola‟s market research has identified and list one

    product that it has targeted at this segment.

Qualitative and quantitative market research (10 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.

Describe two types of primary market research that Coca-Cola has engaged in.

    How might qualitative research provide Coca-Cola with more detailed information than quantitative research?

    Explain how a simulated test market is a cost way of carrying out market research for Coca-Cola.

New products (14 minutes)

    Student task: divide the class into teams and allocate each team one of the 5 product launches in section

    8. Student teams to present their summary of these.

    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

1. Complete the worksheet on this case study.

    2. Explain the benefits of market research to Coca-Cola when developing a new product. (e.g.

    understanding of different segments of the market, can develop a better marketing mix, can

    position itself more effectively).

    3. Explain two reasons why Coca-Cola should develop new products. (e.g. because sales of existing

    products are falling, because there are new growth areas, there are new technologies and new

    markets).

    4. Students to read section 6 and produce a flow chart showing the research process used by Coca-

    Cola.

    Visit www.tt100.biz for Downloads - Theory - Quizzes - Company Info - Current and Previous Case Studies

Coca-Cola Lesson Plan from The Times 100 website: www.tt100.biz

    Coca-Cola

Marketing and the business

Questions and Answers

Which of the following are descriptions of the terms:

    ; product range

    ; market research

    ; product life cycle.

i. the stages of growth of a product from its early development to maturity.

    ii. the process of identifying, and finding out about customer needs and requirements, and about

    markets and competitors.

    iii. the different types of products that are part of a businesses portfolio.

Product range iii.

    Market research ii.

    Product life cycle i.

    What is market research and how does it help an organisation like Coca-Cola to develop a product portfolio?

    Market research is the systematic gathering, recording and analysing of data about problems relating to the marketing of goods and services. It helps Coca-Cola to identify the various components of the markets for drinks, and the various segments within these components. It enables the firm to identify areas of growth and decline so that it can position relevant drinks in appropriate segments of the market, so as to provide maximum benefit to customers.

    Which is the largest component of the non-alcoholic beverage sector? Which is the largest component of this sector?

    Soft drinks is the largest component. Carbonates is the largest component of this sector.

    Can you identify one component of the soft drinks sector that is currently small but has the potential to become much larger?

    Both sports/energy drinks and water have tremendous potential for growth. Sports/energy drinks because there is a boom in sports/leisure and recreation, and water because of increasing concerns about the quality of tap water.

Identify one segment of the drinks market that Coca-Cola‟s market research has identified and list one

    product that it has targeted at this segment.

    One segment that Coca-Cola has identified is the sports drink segment and Powerade is the product that they have positioned in this segment. Another segment is mothers looking for a drink suitable for 2-5 year olds, and Pooh Roo Juice is the product targeted at this segment.

    Visit www.tt100.biz for Downloads - Theory - Quizzes - Company Info - Current and Previous Case Studies

Coca-Cola Lesson Plan from The Times 100 website: www.tt100.biz

    Describe two types of primary market research that Coca-Cola has engaged in.

    One type of primary research is quantitative research, which involves carrying out extensive survey work with a broad sample of consumers. The other type is qualitative research with small focus groups.

    How might qualitative research provide Coca-Cola with more detailed information than quantitative research?

Qualitative research through such means as „focus groups‟ enables an organisation like Coca-Cola to

    carry out in-depth research into consumers‟ perceptions, thoughts and feelings about different product

    offerings. Consumers have the opportunity to talk at length thus providing more detailed information than quantitative research, which often involves closed ended questioning. Qualitative research is particularly helpful at stage 2 of Coca-Cola‟s five stage research process which involves providing a

    solution to a new opportunity for development of a product.

    Explain how a simulated test market is a cost way of carrying out market research for Coca-Cola.

    Coca-Cola has a range of products, which it offers to mass markets, that are often global in nature. However, when it is testing new products it is more cost effective to try them out in a small section of the overall market that is representative of the total market. Coca-Cola carries out this process by testing new products in a simulated test market, which may include a specific UK region or a specific UK retailer.

    Visit www.tt100.biz for Downloads - Theory - Quizzes - Company Info - Current and Previous Case Studies

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