Coca-Cola Marketing Plan
April, 2013
Connor Barrett Evan Bond Alex Hayes Lucy King Kate Zhukova
Table of Contents
Executive Summary.....................................................................................
Situational Analysis......................................................................................
Internal! Analysis ....................................................................................
Objectives..............................................................................................
SWOT Analysis......................................................................................
External Analysis...................................................................................
Potential Projects...................................................................................
Marketing Strategy.......................................................................................
Product Options and Analysis...............................................................
Segmentation Scheme.........................................................................
Product Market Focus..........................................................................
Target Market.......................................................................................
Marketing Mix......................................................................................
Market Research........................................................................................
Implementation and Control Plan...............................................................
Exhibits......................................................................................................
Biblography................................................................................................
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Executive Summary
In recent years, Coca Cola has lost significant market share due to changing consumer needs and
a static product development. This loss in market share has also resulted in financial
implications, including decreased net income. Changing consumer needs mean that Coca Cola
must adapt to continue its position as a market place leader.
During the next five years, Coca Cola will be implementing a new product, Coke Tabs, to target
the most current and growing consumer trend: convenience. Tabs are a new product featuring
tablets that dissolve in water, creating both carbonation and authentic Coca Cola brand flavors
whenever or wherever a consumer chooses. Additional flavors, including Diet Coke, Fanta,
Sprite, and more will also be adapted as tablets, to appeal to all of Coca Cola’s current users.
Through this new product, Coca Cola will target segments desiring greater convenience,
ultimately expanding its target market and overall market share.
Tabs will stand out from other products because they are portable and easy to use, as well as
attractive in their innovation and bright packaging. They also promote overall sustainable
practices for Coca Cola and its customers, featuring recyclable and reusable containers and
encourage reusable bottles, thereby eliminating plastic, cans, and waste.
Coca Cola will implement this product aggressively. With one of the widest global distribution
systems, Tabs will be pushed everywhere. The main target market of Tabs is 18-35 year olds with
busy, active lifestyles, interested in new and trendy products. Promotions, communications, and
advertising will be directed at this segment, and include popular brand ambassadors, upbeat
concerts and other events, and marketing on college campuses and social media. With an
aggressive five year manufacturing, distribution, and marketing plan, Tabs will be the next
generation of Coca Cola beverages.
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Situational Analysis
Internal Analysis
Business
The Coca-Cola Company is the world’s largest beverage company with a current market
capitalization of approximately $170 billion. The company produces and markets more than 500
non-alcoholic sparkling and still brands with 15 of those being billion dollar brands such as Diet
Coke, Fanta, Sprite, Coca-Cola Zero, Vitamin Water, Powerade, Minute Maid, Simply, Georgia,
Del Valle and most importantly Coca-Cola, the signature soft drink of the company. Through one
of the largest and most efficient beverage distribution systems, the company is able to sell its
products in over 200 countries. Consumers worldwide drink Coca-Cola products at a rate of 1.8
billion servings a day. The company, along with its bottling partners, has more than 700,000
system employees.
Company Mission
“To refresh the world, to inspire moments of optimism, to create value and make a difference.”
Positioning
The company positions itself within the non-alcoholic beverage segment, producing beverages
that appeal to different target markets within that segment. One way the company attempts to
differentiate itself from competitors with products similar to Coke such as Pepsi is through brand
name recognition. In a recent report by Interbrand, Coca-Cola was viewed as the world’s most
valuable brand, worth about $78 billion, while Pepsi, the company’s main competitor, was
ranked #22. Coca-Cola is also percieved very well by it’s customers, compared to others in the
non-alchoholic beverage market (see exhibit 1). Coca-Cola also attempts to differentiate itself by
gaining customer loyalty. It does so through various promotional offers, such as Coke Rewards,
so that it can retain existing customers and also appeal to potential customers in the process.
While Coke’s products may be similar in taste and quality as other competitors, the company
differentiates itself through building brand name recognition as well as customer loyalty.
Objectives
Coca-Cola states that their main objectives are as follows:
• People: Encourage hard work and enthusiasm
• Portfolio: Have a portfolio of brand name products that satisfy the needs and wants of
consumers worldwide
• Partners: Strengthen the company/customer and company/supplier relationship for the
mutual benefit of both parties
• Planet: Be a more eco-friendly company by reducing the environmental footprint
• Profit: Consistently make a profit and attempt to increase it each year in order to
maximize the long-run return of the shareholders
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• Productivity: Be an efficient, effective and fast-moving company that responds to
changing consumer wants and needs
Like any corporation, Coca-Cola’s main objective is to make a profit. The rest of the said
objectives (people, portfolio, partners, planet, and productivity) help to achieve this main
objective and also improve the company’s image.
SWOT Analysis
Strengths:
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The company has notable brand name products (it is able to price its products at a premium
relative to generic products, higher gross profit margin than PepsiCo)
•
Coca-Cola has very high market share (it is the world’s largest beverage company)
•
They generate lots of cash flow from internal operations, which makes Coke financially
flexible
•
The company has an extensive and well-organized global distribution network
•
Coca-Cola’s customers are loyal to the brand
•
The company has contracts with restaurants, universities, etc., which provides stable cash
flows over the life of the contract
•
The product portfolio of Coca-Cola is very wide which results in a large customer base
Weaknesses:
•
The company has notable brand name products (it is able to price its products at a premium
relative to generic products, higher gross profit margin than PepsiCo)
•
Coca-Cola has very high market share (it is the world’s largest beverage company)
•
They generate lots of cash flow from internal operations, which makes Coke financially
flexible
•
The company has an extensive and well-organized global distribution network
•
Coca-Cola’s customers are loyal to the brand
•
The company has contracts with restaurants, universities, etc., which provides stable cash
flows over the life of the contract
•
The product portfolio of Coca-Cola is very wide which results in a large customer base
Opportunities:
•
Consumers have new health needs, including natural/organic ingredients and energy drinks to
support exercising habits
•
Demand for products supporting child nutrition are rising in popularity, creating a growing
market segment
•
Accelerated lifestyles mean convenience/ready-to-go beverages and caffeinated beverages are
in increased demand
•
Sustainable practices reduce waste and long term costs, and also give companies a positive
public image based on eco-friendly practices
•
Coca Cola can expand as a distributor, which they have done in their “freestyle” machines
resembling vending machines for Coca Cola products
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Threats:
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Increased health needs mean Coca-Cola is at risk for losing market share from unhealthy
products
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Competitors have advantages in healthy drink markets such as juices and teas
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Possible health risks for diet sodas are arising, which would detract from their market share in
the beverage industry
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With so many substitutes in the beverage industry, consumers have the majority of purchasing
power
•
New players are constantly entering the beverage market, meaning existing firms will have
difficulties securing market share
External Analysis
Consumer lifestyle - There has been an increase in consumer value of smaller-sized multipacks
of their favorite beverage, since they are beneficial for the “on-the-go” lifestyles of many
consumers today. Consumers see themselves as needing smaller sizes of beverages, as opposed
to the traditional large liter bottles. Therefore, many companies are offering travel-friendly
versions of their products. For example, recently Coke’s primary competitor Pepsi released a
“slim” version of its can for Diet Pepsi, and these were met with very positive reactions from
consumers. They were sold in large multi-packs and were easy to grab and travel with. Because
consumers view themselves as so busy in their daily lives, Coke needs to find ways to adapt to
these consumer lifestyle needs. See exhibit 2 for a graphical representation of changing needs.
Sustainability - Consumers are becoming increasingly interested in sustainability and
environmental protection, specifically in the beverages market. Plastic bottles and aluminum
cans can be considered wasteful, and although recycling efforts have improved in recent years, it
is still an important issue. Currently, many beverage companies are creating “eco-friendly”
bottles that use less plastic and are sometimes even made from different plant-based materials,
which help to improve their “green” rating in the eyes of the consumer. Additionally, it is
important to consumers that the packaging is preservative-free. Re-using water in-plant and
utilizing hybrid delivery vehicles are strategies that certain companies are considering in order to
improve their eco-friendly image.
Growing emphasis on kids and families - Beverage companies are becoming increasingly
focused on targeting the kid and family markets. Parents want to find drinks for their children
that are healthier than the typical offerings of carbonated, additive-filled beverages, and so they
are turning more towards half-juice, half-water options. Younger children do not get to make the
decision in what is purchased for their family’s home, therefore, these drinks are often marketed
towards parents who are interested in the health of their children.
Technology - It is important for companies to keep up with the latest trends in the technology
market. Smartphones have changed the way that consumers are able to interact with companies,
and those that are able to quickly adapt stand to gain the most from these changes in technology.
Consumers now have the ability to track beverage ingredients, play games, and follow the latest
updates from their favorite companies.
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Vitamins, minerals, and science - Consumers are becoming increasingly aware of the potential
health benefits of supplying their body with certain vitamins and minerals. These vitamins and
minerals can be found in beverages, so advanced scientific research is an important trend in the
beverage industry. Additionally, our knowledge of what is “healthy” is constantly changing, and
so beverage companies need to adapt. Natural minerals and vitamins are a big draw for
consumers, and this is further enhanced by the fact that consumer awareness of ingredients is
now very high.
Economic - Despite consumers having an increased focus on healthy alternatives to carbonated
beverages, the carbonated soft drink market has reemerged in the past couple years and has
shown significant growth. This trend can be attributed to the current economic downturn.
Currently, many consumers are turning to sodas as an affordable “treat” for their families and
offer a cheap indulgence for many. Many companies are now offering “real sugar” versions of
their sodas, which are increasingly alluring to the average consumer - these sodas are not much
more expensive than their high-fructose corn syrup counterparts, but the added value of real
sugar makes them attractive to those seeking a cheap indulgence.
Competitor Analysis
PepsiCo Positioned as a leading company in snack foods, fast foods, and non-alcoholic
beverages.
Strengths:
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Famous and recognizable branding
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Diversified products
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High quality
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Customer loyalty
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Operates in the snack food market
The Dr. Pepper Snapple Group Positioned as a non-alcoholic beverage company,
mainly located in the US, Mexico, Canada, and the Caribbean.
Strengths:
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Differentiate themselves through
their unique tasting beverages
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Strong and recognizable brand
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Strongly promote and are known
for their healthy products
The National Beverage Corporation Positioned as the fifth-largest non-alcoholic
soft drink company in the United States.
Strengths:
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A vertically integrated beverage company
involved directly in its production and
distribution
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Diversified products
Weaknesses:
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Not a key player in the international
market
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Smaller market share than Coke
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Health problems from drinking
carbonated soft drinks (effects on teeth,
high sugar content)
Weaknesses:
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Not a key player in the international
market
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Smaller compared to other companies
Weaknesses:
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Concentrated in the US
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Does not generate as much revenue as
the other leading companies
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Nestlé Positioned as the largest snack food and beverage company in the world,
according to revenues.
Strengths:
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Consistently innovate their products
to fit changing markets
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Provide quality products that are
well-known
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Operate globally
Segmentation
On the broadest level, Coke is in the non-alcoholic beverage segment of the market. This
segment is further broken down into geographical region, which are further segmented by
brands. In this second level of segmentation, Coke focuses on a number of segments, including
diet (low-calorie), refreshment, health-conscious, social (those who drink soda only when others
do) and on-the-go segments. Coke is also beginning to segment based on sales in current stores,
using technology to gather information about which products are being sold there, and stocking
more of the high-demand items in particular stores.
Segmentation is important geographically due to cultural definitions of good taste, or cultural
beverage habits that occupy certain regions. Coke has also developed different brands to appeal
to different customers; for instance, when Diet Coke unintentionally became presented as a
“female beverage,” Coke developed Coke Zero—essentially the same drink—in order to provide
a low calorie option for health conscious males.
Potential Products
Objectives
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Continue current product lines and keep up customer satisfaction in already penetrated market
segments
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Develop a product that will help Coca-Cola capture additional market penetration and secure
more of the beverage market share
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Work with growing consumer trends to attract a new target market (such as the growing on-
the-go market or a new health conscious market)
Success Criteria for New Product Introduction
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Better address changing consumer needs and lifestyles
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Attract a minimum of 20 million customers for the new product
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Generate $6 billion of revenue within four years of sale
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By 2016, achieve profit of at least $1 billion
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Achieve 3% of total soda industry market share within four years
Opportunities to Explore
On-the-Go Coffee Drink: “Frapp”
For the consumer with an accelerated lifestyle who values convenience and on-the-go beverages,
Coke’s on-the-go coffee drink line would prove to be very attractive. They would be provided in
Weaknesses:
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Product recalls damaged image
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Complex supply chain management
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Too many products in their company,
causing less time allocated to each
division
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slim, futuristic cans and be marketed for the businessman or woman who needs a quick pick-me-
up. Cans could be re-sealable for those who need to worry about the drink spilling during their
busy day. Possible threats may include health concerns and competition from coffee companies,
such as Starbucks.
Healthy Option: “Green Machine”
For the consumer who is not only interested in his or her own personal health, but also for the
health of the environment, Coke’s new “Green Machine” would prove to be an appealing option.
Coke understands that consumers are worried about the environment, as well as their own health,
and so this new drink would meet these wants of our consumers. “Green Machine” will be
bottled in a new, 100% plant-based material bottle that can also be recycled just as any other
bottle. This drink will meet the dietary needs of our consumers and will feature all-natural, exotic
ingredients, while also maintaining itself as a low-calorie option when compared to competitors
such as Snapple and Nantucket Nectars.
Dissolving Tablets: “Coke Tabs”
An appealing product for on-the-go soft drink consumers, Coke Tabs give you the power to turn
a glass of water into a Coke product in seconds. Coke Tabs are convenient, easy to carry, and
don’t require wasteful packaging, making them a perfect product for the ever-busy, environment-
conscious modern individual. Possible threats may include production difficulties, imperfect
taste, or competitors (such as Mio or Crystal Light) drawing from potential consumers.
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Marketing Strategy
Product Options and Analysis
The three options that Coca Cola can choose to pursue are a new coffee drink, Frapp; a healthy
juice option, Green Machine; or the dissolving tablets, Coke Tabs.
Frapp First Year Revenue: $300 million. First Year Expenses: $1.2 billion.
The Green Machine First Year Revenue: $400 million. First Year Expenses: $1.5 billion.
Coke Tabs First Year Revenue: $659 million. First Year Expenses: $1.5 billion.
Justification
By looking at the table of new product options, it is clear the Coke Tabs are the best new product
to introduce. They target the quickly growing on-the-go consumers, follow our current brand
image, and have sustainable features that will attract environmentally friendly customers as well.
Their taste will remain consistent with the already established and successful products of Coca
Cola. Coke Tabs are suited to become an extension of the Coca Cola family, in contrast to The
Green Machine and Frapp; Coca Cola is not known for producing these types of products, and
would need to find a way to attract new, loyal customers to have a chance at being successful.
Pros:
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Healthy (organic, has vitamins,
electrolytes)
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Low calorie
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Sustainable packaging
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Expands the market
Cons:
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Expensive
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Coke is not known for producing these
kinds of drinks
•
Lots of competitors
•
Requires a lot of R&D
Pros:
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Targets the growing on-the-go lifestyle
•
Attention grabbing and innovative
•
Recyclable/reuseable package
•
Smaller size for easier distribution
•
Based off of well-known beverages (Coke,
Sprite, Fanta etc.)
•
Same taste as successful Coke Products
•
Follows brand image
Cons:
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Expensive
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Difficult to develop, lots of R&D
•
Artificial
Pros:
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Eco-friendly, glass containers
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Modern/futuristic design
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Serving on-the-go consumers
Cons:
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Established competitors (like Starbucks)
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Not very healthy
•
Does little to expand the market
•
Company will need to introduce a new
brand and build loyalty
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While the cost to produce Coke Tabs would total to $1.5 billion in the first year, the company
will recover this investment within the next 4 years, as the revenues received from this product
would be the greatest, totaling $659 million within the first year (see exhibit 3). In addition, by
investing in Coke Tabs, the company would receive a net income of $1 billion by the end of its
fourth year in the market. It is clear that both financially, logistically, and logically Coke Tabs are
the best option that Coca Cola should invest in to increase its market share and profits.
Segmentation Scheme
Coca-Cola’s segmentation scheme is the non-alcoholic, soft drink segment, which includes a
variety of smaller segments within it, all of which have different needs. These segments include:
• Diet Segment: Diet Coke and other diet products of Coca Cola are specifically targeting a
segment of beverage drinkers looking for a low calorie option. These consumers are
aiming for a low calorie option without sacrificing high quality taste or giving off a
temporary or strictly weightloss image.
• Health-Conscious Segment: These consumers are primarily concerned with organic, all-
natural beverages. Typically, these consumers avoid preservatives and other artificial
additives in their beverages, as well as manufactured ingredients.
• Social Segment: Another segment of the nonalcoholic beverage industry is social drinkers
– there is a specific group of consumers who drink soda or other beverages in social
settings, such as parties or other group events. These consumers are often looking to buy
in bulk and buy well known brands.
• On-the-Go Segment: These consumers have active and busy lifestyles and are looking for
beverages that they can easily carry with them on-the-go and are not looking to sit down
to have their beverage.
• Refreshment Segment: The consumers in this segment value taste and quality the most. !
In this project, Coke has decided to target the on-the-go segment, with the new product, Coke
Tabs.
Product Market Focus
The product market focus for the Coke Tabs is convenience, innovation, and sustainability. Since
Coke Tabs are mainly targeting the on-the-go segment, the convenience of the product will be
very appealing as they are easy to carry, are pocket-sized, and simple to use. The easiness,
effectiveness, and modern thinking of the Coke Tabs will attract these target consumers. These
customers are looking for something unique, for the next generation of Coke, and Coke Tabs will
deliver what they want. In terms of innovation, Coke Tabs will have a bright and modern
packaging design to emphasize the radical new thinking behind their creation and usage. Finally,
the brand will also devote a part of its attention to sustainability, since this would not only save
money for the company, but also help the global community. Tabs will feature sustainable
packaging, reusable containers and bulk buying options.
Target Market
With Coke Tabs, Coke hopes to attract a market of 18-35 year olds with busy, active lifestyles,
interested in new and trendy products. The product’s marketing will stress the convenience of
Coke Tabs, focusing first on their on-the-go nature, secondly on the innovative aspect of the
Coke Tabs, and finally highlighting the potential to serve as a sustainable, environmentally-
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friendly alternative to traditional sodas and soft drinks. Coke Tabs will be positioned as the
newest feature of the non-alcoholic beverage market. The product’s target consumers require a
good-tasting product that is designed for an on-the go lifestyle, convenience, a touch of caffeine,
an attractive, trendy package, and an overall new approach to soda. Coke has chosen to pursue
this segment in order to further market penetration, and to enhance our image as an eco-friendly,
innovative company.
Marketing Mix
Product
The essence of the new brand will be exemplified in the product itself. The individual tabs are
small, nickel-sized, and easy to carry around. !The small size of the packages will enforce the
idea of convenience and the on-the-go lifestyle, while also making distribution and inventory
holding more convenient, as more products can fit in a smaller space than traditional soda cans.
The packaging for each tab or set of tabs will be either reusable or recyclable. The trendy
packaging will also serve to attract Coke Tab’s target customers, especially those who value
artistic and innovative design. Customers will have several packaging choices. One package will
be a reusable container for the tabs, which customers can refill when needed, by purchasing
packs of 12 new tabs in recyclable package. Another packaging option is a set of tabs in a single-
use container that is completely recyclable or compostable. The tabs will come in many flavors,
all varieties of Coke products. The packaging will vary based on product; Coke tab packaging
will be brick red in color, the Sprite tabs green, the Fanta orange etc. This will build upon
existing brand loyalty, and will help the customers understand which flavor they are choosing.
Because this is a new product, there will be significant product development requirements of
both money and employee time. However, the product will be so popular that the costs are
completely worthwhile.
Place
Distribution will be a relatively easy endeavor for this new product. As Coke is a pre-existing
company that is well established in its distribution, we can use our existing channels of
distribution for the new product. Coke Tabs will be sold wherever Coke products are already
sold, starting in the United States and trickling into other areas in North America in the first
quarter. Later, once Coca Cola has a stronger understanding of market reactions to this product
based on market research analysis and other decision-making criteria, the product will slowly be
introduced into other regions starting with Western Europe, specifically France, Germany,
Switzerland, Spain, and the United Kingdom. Following this expansion, Coke Tabs will grow
further into Eastern Europe, and later South America, Asia, and Australia. Coke Tabs will be
primarily at grocery stores and convenience stores, both in bulk and individual packages.
Promotion
The promotion of the new product will be primarily designed around the themes of innovation
and convenience through multimedia advertisements and special events to garner support and
raise product awareness. These events will be mainly held at college campuses, sporting events,
concerts and public recreation areas. At these events, there will be a combination of product
demonstrations and explanations of product use with entertainment focused at our target
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customers. Such entertainment could include a carnival-type atmosphere, a concert sponsored by
Coke Tabs, or an event featuring a celebrity brand ambassador. At these events, each attendee
will be provided with a reuseable water bottle emblazoned with the Coke Tabs logo, containing a
Coke Tab. By providing free samples of our products in such an atmosphere, customers will
think of Coke Tabs as a fun, trendy, and innovative product.
Tab media advertisements will feature celebrity endorsements (publicity) in order to attract target
customers. The ads will have a simple design with colors that pop and draw the eye (see exhibit
4). !They will be featured on television channels frequented by our target customers, including
air time during the Super Bowl. In addition, the company will make print ads to go in
newspapers and magazines nationwide. In social media, the company plans to make short, viral
YouTube videos presenting Coke Tabs in a humorous way, as well as using facebook, twitter, and
other viral social media sites to further the product in the places Coke Tab’s target customers visit
most. Advertising strategy may be seen in the product life cycle graph in exhibit 5.
Pricing
Pricing will vary based on the package a customer chooses to purchase. An individual tab will
cost around 75 cents, but a pack of 12 will only cost between $8 and $10, which is quite
inexpensive, especially when one considers this is equivalent to 12 bottles of Coke. As a whole,
the price of Coke Tabs will be lower than an equivalent can of soda. Pricing will also vary based
on packaging (reusable packages will cost about $1 extra at first purchase, but the refill packs
will be discounted for future purchases). Overall, the price of the tabs will be attractive to
customers, while still bringing in substantial profit for the company.
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Market Research
In beginning this research, Coca Cola needs to primarily address five questions: what they need
to know, why they need to know it, when they need to know it, what will be done differently, and
what resources are available to the company. With the introduction of Coke Tabs, Coca Cola
needs to know how people will react to this product, as well as gage the impact of the product on
the brand identity of Coke. Because Coca Cola already has such a well established line of
beverages, adding a new product will pose certain challenges. Successful market research that
addresses the taste, convenience, innovation, and sustainability of Coke Tabs, will allow Coca
Cola to evaluate and even predict consumer reaction to the product.
Exploratory research can serve as a valuable tool for Coke, particularly through conducting focus
group interviews and surveys. Along with this exploratory research, Coke’s market research will
also focus on descriptive and causal research methods to ensure that that company is receiving a
variety of information from multiple sources.
Pre-Launch Phase Market Research
In the pre-launch phase, Coca Cola will conduct both focus group interviews and surveys, with
market research beginning immediately. Primarily, Coca Cola should observe and analyze small
focus groups consisting of men and women between the ages of 18-35 with busy, active
lifestyles, as this is the product’s target market. By conducting these interviews, Coca Cola will
be able to collect qualitative data to better understand the target market consumer and her needs,
which can be beneficial in designing the taste, brand image, packaging, and price of the product.
Questions asked in the focus group interview will focus on factors important to the Coke Tabs
product such as taste in comparison to current Coke products, the price that consumers would be
willing to pay, and the lifestyles of the target market consumer. Additionally, collecting
quantitative data will allow Coke to forecast future interest in the Tabs product. To collect this
data, Coke will issue surveys in addition to the focus group interviews. These surveys will again
be issued to our target market, and will be sent to a large number of people to ascertain a variety
of opinions and interests.
Launch and Post-Launch Market Research
Following the pre-launch phase, Coca Cola will continue to perform market research. During the
launch and post-launch phases, it is necessary to continue to assess consumer opinion of Coke
Tabs. Without this information, Coca Cola would not be able to analyze consumer opinion in
relation to the company’s planned success criteria for Coke Tabs. However, during these phases,
the focus of the market research will be geared more specifically to even narrower target
segments, and not just the exploratory analysis that the company began with.
Descriptive and causal research are also essential tools that Coca Cola can utilize to gauge
specific answers to questions. Because Coca Cola is a well-known brand name, the company will
be able to perform longitudinal research studies with a continuous panel of households over a
period of time. Because these panels are not as randomly selected as focus groups or surveys, the
panel will consist primarily of consumers in critical target segments for Coke Tabs, and in order
to encourage participation, incentives such as discounts on Coke products will be offered.
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Additionally, Coke can perform causal experiments to determine what variables might affect
consumer buying behavior of Coke Tabs. For example, field studies can provide information that
will help the company understand what factors account for a consumer deciding to purchase a
box of Coke Tabs as opposed to a 24-pack of Coke, whether it be the size, price, taste, or other
component of the marketing mix. Coca Cola should be prepared to emphasize certain factors that
prove successful, while at the same time being ready to adjust if any elements of Coke Tabs are
not attractive to its target market.
Coca Cola’s Market Research Resources
Coca Cola has the necessary resources to conduct such marketing research. Market research is a
vital component of any business, and Coca Cola has the workers, manpower, and financial
capacity needed to conduct such interviews. Coca Cola is already a powerful and established
company, and Coke has previous experience in conducting and analyzing large amounts of
information collected through market research. Lastly, Coca Cola will have the funding that is
necessary to carry out such large-scale market research because it is such a successful company.
Market Research Consequences
This market research will be geared towards addressing the plan, as well as creating a product
that inspires convenience, innovation, and sustainability. By beginning this research at the
beginning of the product development phase, Coke will able to address consumer feedback as the
product is being developed - the more market research that is collected, the less of a risk this
product will pose to the company. Coke will also be able to more easily adapt the Coke Tabs
product to the opinions and consumer feedback gathered throughout the pre-launch, launch, and
post-launch phases, as well as consumer feedback on the advertising and promotional tools.
Ultimately, the goal of Coca Cola is to be able to quickly recognize, react to, and address
consumer opinions on the entire marketing mix of Coke Tabs.
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Implementation and Control
The company plans on implementing this product over the span of four basic time periods: pre-
launch, launch, post-launch and ongoing. The pre-launch phase will last approximately one
quarter in which the company will invest in research and development, market research and
different forms of advertising such as website/social media/online, TV, print/billboards and radio. !
This is the period in which Coca-Cola will introduce the ideas surrounding the product to the
target consumers. The launch phase will take place over two quarters. !During this time, the
company will begin to produce the product and simultaneously continue to advertise, research
the market, and invest in research and development. Coca-Cola will take a look at how effective
the research and development investments were from the previous quarter and change them if
necessary. The company will use market research to identify the target consumer’s perceptions of
the new product. The next time period for implementing the product will be the post-launch
phase. Coca-Cola will continue to analyze what the consumers think about the product and
change any advertising or research and development in response. Lastly, the ongoing phase will
follow the post-launch phase. During this period, the company will continue to monitor the target
consumer’s needs and wants and change the marketing mix if necessary. Based upon many
different factors, such as where the product falls in the BCG matrix, the company will determine
the appropriate plan for the product.
In order to make this product work, a lot of investment in research and development is necessary.
Investing in research and development will give us more information surrounding how the
product will work and any limitations to it. !Specifically, the company can research similar
products or ideas and apply it to the new brand.
The quality and the taste of this drink has the possibility to be less than that of a regular Coca-
Cola beverage. !The fact that this product is a tab that transforms into a carbonated beverage
implies that it would most likely need artificial ingredients to it in order to make it work,
something consumers might disprove of. !Also, the initial investments in research and
development may be ineffective and require continual investment, which may put a strain on the
company’s financial position, although this is not a huge threat given Coke’s strong finances. !
Lastly, consumers could be indifferent to either drinking the beverage with the Coke tab or just a
regular Coca-Cola, making initial investments useless.
In order to make the product successful, it is imperative to invest heavily in the appropriate
researchers who will use their knowledge and apply it in creating this product. Market research is
also crucial in order to estimate how effective the implementation of this product will be. !If
consumers have any specific problems with the product, their concerns must be addressed, and
the Marketing Mix appropriately revised.
15
Exhibits
16
Exhibit 1: Perceptual Map
Exhibits
17
Exhibit 2: Graph of Changing
Consumer Needs
Exhibits
18
Exhibit 3: Profit and Loss
Statement
Exhibits
19
Exhibit 4: Mock
Advertisement
Exhibits
20
Exhibit 5: Product Life
Cycle Graph
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