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Market planning and research

By Billy Rogers,2014-03-20 21:15
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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.

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

    Coca-Cola

Marketing and the business

http://www.thetimes100.co.uk/case_study.php?cID=3&csID=108

Questions

1. 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 business’ portfolio.

    2. What is market research and how does it help an organisation like Coca-Cola to develop a

    product portfolio?

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

    component within this sector?

    4. Can you identify one component of the soft drinks sector that is currently small but has the

    potential to become much larger?

5. 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.

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

    7. How has market research enabled Coca-Cola to design appropriate pack types?

    8. How might qualitative research provide Coca-Cola with more detailed information than

    quantitative research?

    9. Explain how a simulated test market is a cost effective way of carrying out market research for

    Coca-Cola.

10. Why is it important to track the market performance of new products?

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

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

    Coca-Cola

Marketing and the business

Answers

1. Product range iii.

    Market research ii.

    Product life cycle i.

    2. 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.

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

    4. 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.

    5. 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.

    6. 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.

    7. Through market research Coca-Cola has been able to ask consumers what size and type of pack

    they find most suitable in different situations. This has enabled the company to design a 2 litre

    bottle for family consumption at home, and a 500ml bottle for consumption ‘on the move’ as well

    as other packs for appropriate occasions.

8. 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.

    9. 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.

    10. The performance of all products in their respective markets needs to be tracked. This includes

    checking on consumer awareness and ongoing sales figures. This is particularly important for

    new product launches because it may be necessary to adjust the marketing mix to support the Visit www.tt100.biz for Downloads - Theory - Quizzes - Company Info - Current and Previous Case Studies

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

    launch in the most effective way. For example, if a product is performing better than expected it

    may be necessary to increase production, and perhaps scale down promotion and advertising

    activity. Conversely, if sales are not living up to expectations it may be necessary to inject

    elements of the marketing mix that best support product development.

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